Car Valuations – Find Out Any Car's Market Value in Seconds

Our list explains numerous factors that influence a car's value, using relatable examples to help you better understand car valuations.

1. The Manufacturer's Reputation

• Different manufacturers have varying reputations for reliability and desirability. For instance, a luxury brand like Mercedes will often retain its value better than a budget brand.
• Furthermore, specific models within a manufacturer can differ significantly in value retention.
• For example, while Toyotas are known for holding value and the Corolla is a go-to car for many New Zealanders as the value tends to hold, this isn't true for every model Toyota produce. However, as this 2023 AutoCar article confirms, Toyota is widely trusted amongst New Zealanders.

2. The Model

• The model of your car plays a significant role in determining its resale value and is often more important than the general reputation of its manufacturer.
• Using Toyota as an example, the Toyota Corolla is a typical example of a model that consistently holds its value. Its popularity in New Zealand, combined with a reputation for reliability, efficiency, and affordable maintenance, makes it a sought-after choice as a used car.
• However, the Toyota Prius shares the same manufacturer and is respected for its innovative hybrid technology and fuel efficiency (confirmed in this 2018 Stuff.co.nz report), but its resale value trajectory differs from that of the Corolla.
• This variation can be attributed to factors such as the specific market demand for hybrids, the higher initial cost, and potential concerns about battery life and replacement costs.

3. Age

• Generally, newer cars hold more value than older ones. However, it's not just about the year; cars from certain years might be valued more due to specific features or technological advancements available at that time.
• For instance, a 2015 model with advanced safety features might hold value better than a 2012 model without them.

4. Mileage

• The average New Zealander drives 8,000 to 12,000 km per year per a 2015 NZTA study. A five-year-old car with only 30,000 km on the odometer will always be valued higher than one with 70,000 km.
• The car's valuation will be influenced by how much it has been used relative to its age.

5. The Exterior Condition

• First impressions always matter when it comes to cars, and one without scratches and dents will usually be valued higher.
• Colour can even play a role; for example, white cars might be more popular and hold their value better than less popular colours like green or orange.

6. Interior Maintenance

• If you compare two identical cars for sale, one with a well-maintained interior and the other with ripped seats and a cracked dashboard, the better-kept car will fetch a higher sales price.
• Regular cleaning and avoiding interior damage protects a car's value.

7. The Service History

• Regular maintenance ensures the car runs well and boosts its resale value.
• A car with a complete service history, such as regular oil changes and timely part replacements, will often be worth more than a similar car with a spotty maintenance record.

8. Features and Modifications

• After-market modifications or feature upgrades can either increase or decrease the value. For example, adding high-quality alloy wheels might enhance value, while modifications like overly loud exhausts could decrease it.
• Modified cars are also harder to finance and insure, so the risk to a buyer affects the price. 

9. Fuel Efficiency and Type

• Cars with better fuel economy or electric or hybrid vehicles can often hold their value better, especially as fuel prices continue to increase.
• For example, an electric car like a Tesla may maintain its value better than a less efficient petrol car, given the growing trend towards sustainable transportation.

10. Accident History

• A car that has been in major accidents almost always has a lower value than one with a clean history.
• A door replacement or bumper fix won't have any significant impact, but significant repairs from a major accident will. For instance, a vehicle with its airbags deployed might significantly decrease in value as potential buyers are weary of taking on a risky car.

11. Ownership History

• The number of previous owners can impact a car's value - a one-owner vehicle is often more desirable than one that's changed hands multiple times.
• This is because a single-owner car is perceived to have a more reliable maintenance and usage history.

12. Market Trends and Demand

• Certain car types can shift in desirability over time, influencing their value. For instance, SUVs have grown in popularity, which could mean a higher resale value than sedans or minivans in the same category.

13. Regional Factors

• Where you live in New Zealand can also affect the value of a car. In rural areas, utes and SUVs might be more in demand (and hence, more valuable) than in metro Auckland and Wellington, where compact cars might be preferred for their manoeuvrability and city parking ease - but not always, and tastes are specific.
• However, this isn't always the case and city preferences vary. 

14. Warranty and Guarantees

• Cars still under manufacturer warranty or those with extended warranties can fetch a higher price.
• For example, a car with a 5-year warranty that still has a couple of years left is more appealing and, therefore, more valuable than one that is out of warranty. 

15. Technological Advances

• Cars fitted with the latest technology, like advanced navigation systems, adaptive cruise control, or autonomous driving features, can command a higher value.
• The actual value will vary based on the technology.

16. Seasonal Factors

• Demand for certain types of vehicles can fluctuate with the seasons, affecting their value.
• While not overly popular in New Zealand, convertibles are usually more demand in the spring and summer, potentially increasing their value during warmer months whereas they are arguably less in demand as winter approaches.

17. Safety Features

• Vehicles with advanced safety features, like autonomous emergency braking or blind-spot monitoring, may be valued higher.
• Given the significant differences between different makes and models, RightCar NZ focuses on raising awareness of the differing standards. 
• Overall, the safer the car is, the more likely it will appeal to buyers.

18. Emission Standards Compliance

• Cars that comply with more stringent emission standards might be more future-proof, thus holding their value better, especially as environmental regulations may tighten in the future (although arguably unlikely under a National/Act government.
• RightCar covers environmental ratings in detail.

19. Luxury Add-ons

• High-end features like leather seats, sunroofs, or premium sound systems can add to the car's value, making it more appealing to certain buyers. However, this isn't always guaranteed, and many can be taste-specific. 

20. Brand Loyalty and Reputation

• Brand loyalty and reputation can significantly impact a vehicle's resale value.
• Car brands develop a loyal customer base due to their consistent quality, performance, and reliability.
• For example, Subaru has a robust following thanks to its reputation for producing durable, reliable vehicles with excellent off-road capabilities. This brand loyalty often translates into higher resale values, as devoted customers are willing to pay a premium for a brand they trust.
• Another example is Toyota, known for its longevity and low maintenance costs, contributing to its strong resale value. On the other hand, manufacturers with a history of recalls or reliability issues might see their resale values negatively affected.

21. Supply and Demand

• The laws of supply and demand greatly influence a car's market value. If a particular model is in high demand but in short supply, its value will likely increase.
• While not usually a major issue in New Zealand apart from the after-effects of floods and cyclones (as outlined in this 2023 RNZ story), supply issues cause price spikes in limited-edition models or when a popular model is discontinued, making existing cars more desirable.
• However, if New Zealand's roads are flooded with a certain model, even if it is well-regarded, its value may decrease due to the oversupply.