Costly options of little re-sale value
October 9, 2009 by Matt Brogan
Residual value experts Glass’s have in a recent UK-based report claimed that some optional extras are of little value on the used car market.
Glass’s say that expensive manufacturer fit options such as radar cruise control can drop 86 per cent of its value over a 12 month period while the car itself may only drop in value by around 40 per cent.
Night vision systems also took a big hit loosing 80 per cent of their original value over the same period.
It’s not all bad news however with some aesthetic options actually proving worthwhile, such as factory fitted alloy wheels.
“Investing in a manufacturer-fit styling upgrade is often very worthwhile, as it can return more than 100 per cent of its original cost,” says Mr Richard Crosthwaite, Prestige Car Editor at Glass’s Guide UK.
“For example, a one-year-old BMW 325i with an optional M Sport pack is currently worth £3,500 (AUD$6,200) more than a standard 325i of the same age, even though the pack itself would have added only £2,500 (AUD$4,400) to the list price.
“Opting for 20-inch alloy wheels in preference to the standard-fit 19-inch items on a BMW 330i coupe will add £1,000 (AUD$1,770) to the value of a one-year-old example.”
Other options that retain value include panoramic sunroofs, Bluetooth connectivity, park distance control and some satellite navigation systems.
“Buyers of smaller prestige cars are still willing to pay extra for such options. A one-year-old Audi A3 or BMW 1 Series specified with park distance control, Bluetooth and a sunroof would currently draw a premium of between £500 and £1,000 (AUD$880 and $1770).” added Mr Crosthwaite.
Print it: 
Im surprised that satnav held resale value. i know it wouldnt change my pricing on a second hand car, generaly factory fitted satnav is useless after a couple of years when some roads have changed.
I can understand the factory aestetic upgrades doing well though, it gives a car a nice “look at me im a bit fancy” appeal without the added problem of “look at me ive been messed around with a lot”
All factory fitted sat nav units are capable of an update for both road maps and software/firmware.
It’s not just options. Compare a entry-level car to a top-of-the range. Example: previous generation ZZE-122R Corolla Ascent vs Ultima. The Ultima with the same kms is pretty much the same price as an Ascent now they’re about 3-7 years old.
Wow this is a huge surprise….not. I use to value cars many many years ago and most of the high cost options aren’t even considered, it is all about how the car looks hence the reason alloy wheels, sunroofs and the sort seem to retain their value. If the car is a crap colour, it won’t matter what you’ve spent in options, the car will drop in value like a rock. Poor exterior / interior colour combinations are a killer too (normally reserved for expensive European cars) as an example a Silver Mercedes with a Beige interior (yes Mercedes let you do this although it’s not a recommended combination) the owner is ripping up money every day.
Another interesting fact, rust protection, paint protection and interior protections, absolutely worthless. The salesman lies to the customer saying it will help retain value, most people valuing cars don’t ask/care. Window tint, huge profit item for a car dealer, whenever we received a trade-in with tint, the tint would be stripped before the car would go on the lot, gives the sales guy another chance to sell the high profit item.
One thing not discussed in the article is prestige paint, on many European cars prestige paint can cost $2,500, is a coloured car really worth that much more that a white one at trade-in time.
Thank you for your insight Alex, i very much appreciate it. Kim
This isn’t news to anyone who has bought or sold a second hand car. The problem for technology based options is that eventually they become standard fit, and when that occurs the resale of that option becomes next to nil. Case in point would be my Subaru Liberty. I bought second hand in 2006 a MY04 Liberty with the luxury pack, which when new cost $42k. By the end of the Liberties life (last month) the boggo standard version had all the things that were added options for my car, so on the market my car would now be competing with those near new run out models that have more features. I knew this would happen when I bought it so I wasn’t worried, but yeah, options and spec levels usually add nothing to resale values.
Very true Tom, add to that the simple fact that the average Aussie punter out theer wants all the trimmings on the second hand car but is NOT willing to pay for them. See that every day at work
It takes 10 british scientist with gov. grants to figure this out? Ask anybody in the game. Options and accessories add appeal not value.
I didn’t know you could get 20 inch wheels on the 3 series! You learn something new every day.
When purchasing a second hand car, the more things there are in the car, the more there are to go wrong.
Nothing new here. Except the typo – ‘loosing’
Tried to talk common sense to a certain high earning relative when she had the car brochure out from a German brand with the circles.
Options were like charity for the dealer.
I questioned why do you want all this? The response, BECAUSE IT IS THERE!
Another relative who was in the trade used to remove the tow bar before trade in & sell it separately.
Interested to know what the mark down on the $42K Liberty from 04 was.
More than half?
I bought the Liberty for $26k in late 06, now on the second hand market its going for around 20k, which is a reasonable drop. Definitely glad I didn’t buy it new though.