Sunday, September 20, 2009

Value of aftermarket parts on cars

Some of my friends told me that for some of the cars I have owned, the value lost when I sold my car was fairly reasonable.  That is true, but also keep in mind that I did not account for any of the cost of after market mods or tuning that I may have done on the vehicle.

For example, I purchased my Porsche for $36,000 from a wholesaler, and sold it 4 years later for $21,000.  Fairly reasonable, correct?  Well, yes and no.  If you add in all of the aftermarket parts I have added to the vehicle (mainly OEM and high-end aftermarket) and sold with the car, they would total almost $10,000.  In reality, I did not net out with a $15,000 loss after 4 years, but $25,000 after everything was accounted for.

Why did I bring this up?  This proves a point that many of my friends, colleagues, and people in the auto industry have said over and over -- mods to your car will NOT increase the value of your vehicle.  In many cases they will actually decrease the value of your car when you are ready to sell.  This is the reason why so many individuals "return their car to stock" before putting it on the market.

There are a few exceptions, like Dinan for BMW and RUF for Porsche, where they may demand a higher value.  But all in all, there is a general perception that cars that have aftermarket components, and are highly tuned, are driven more aggressively.  Because of this, the vehicle may have more wear and tear, and are not as well maintained.  In addition, mods are based on such personal taste and preference that what one individual values may not be the same as another.

For individuals on the market to sell a car, please keep this in mind and do not get offended when the offer you receive is not in line with your expectations and money/effort put into your car.  On the other hand, for those who are in the market, it could be a great time to find a good deal, and save a couple thousand dollars or more.  This is especially true if you were able to find that vehicle that was tuned exactly how you would have wanted it.

This is not to say your aftermarket components are of no value.  Many individuals will be willing to pay a handsome price for your components separately.  Even if you get pennies on the dollar for your parts, that is still more than what you would receive if it stays on the car.  When you buy a car, first decide how long you are planning on keeping it.  Depending on the tenure, you  may or may not want to forgo certain mods.  For example, intake, wheel, and exhaust mods are fairly easily removed and sold separately, while engine tuning will remain with the car.  Lastly, don't forget to keep your stock parts for when that time comes!

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