5 Common Habits That Can Decrease Your Car’s Value in South Africa

In South Africa, car owners eager to sell their vehicles often overlook habits that can dramatically decrease their car’s resale value. Ernst North, co-founder of Naked, a digital insurance platform, has outlined five key mistakes South Africans make that can cost them when it’s time to sell or trade in their car.

Naked, launched in 2018, offers a fully automated, AI-driven platform that provides car insurance, home insurance, and single-item policies without human intervention. The platform’s rapid growth recently secured a $38 million funding boost, which will support its expansion plans.

Despite Naked’s success, North cautioned car owners about common habits that can hurt the resale value of their vehicles. Here are the top five:

1. Skipping Regular Servicing and Maintenance

While annual services or repairs when warning lights appear may seem like an unnecessary expense, neglecting them can lead to bigger, costlier problems. A full-service history boosts buyer confidence and can ensure the car fetches a higher price. Moreover, skipping services can void warranties and even affect insurance claims. If an accident occurs due to neglected maintenance, such as brake failure, insurers may refuse to cover the damage.

2. Ignoring Small Dents and Scratches

What may seem like a minor imperfection, such as a scratch on a door or a dent on the bumper, can have a lasting impact on the car’s value. Left untreated, scratches can lead to rust and corrosion, lowering the vehicle’s worth. North advised getting dents and scratches repaired promptly, even though it may be an inconvenience. Additionally, car owners should assess whether their excess or no-claims bonus is at risk before making a claim for such minor damages.

3. Losing Important Paperwork

Documentation such as service records, repair invoices, and the car’s manual are essential when selling a car. A well-documented car history reassures potential buyers that the vehicle has been properly cared for and maintained. Losing this paperwork can diminish buyer confidence and lower the car’s resale value.

4. Adding Aftermarket Modifications

Customizing your car with aftermarket parts may appeal to some, but it can actually lower the vehicle’s resale price. Modifications that affect style or performance are particularly off-putting for buyers who prefer a standard, unmodified vehicle. North advised that car owners should keep the original parts and restore the vehicle to its factory condition before selling. Furthermore, any modifications should be reported to the insurance provider to avoid potential claim denials.

5. Neglecting Basic Care

Beyond maintenance, basic care and cleanliness play a crucial role in preserving a car’s value. Leaving a vehicle exposed to the elements, leading to sun damage, faded interiors, and rust, will hurt its value over time. For those who can’t park under cover, investing in a quality car cover is a simple way to protect the car from environmental damage.

North concluded, “Maximizing your car’s resale value doesn’t require magic; it’s about proper care, timely maintenance, and a bit of foresight. By breaking these habits, not only will you have a more reliable car, but you’ll also get the best price when it’s time to sell.”

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Sourced:Business Tech