Dealer servicing could help boost premium badge car values | Advice - Car News May 2022

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15:34 Monday 09 May 2022

Car owners might find the difference in resale value between a premium-badge car that has been maintained within the franchised dealer network for its first three years and one that has been serviced by independent workshops could run into thousands of pounds, according to a car pricing expert.

Simon Harris, Head of Valuations at UK Vehicle Data, said: “For premium badge models it's probably safer to ensure it remains within the franchise dealer network during the first few years of ownership to maximise value on resale, to avoid any warranty sticking points should faults develop, or difficult questions over the value of the car at the end of a PCP (personal contract purchase) term.”

For older premium cars there is no longer an expectation to use the main dealers for servicing but if an owner has done so “it makes it rather more appealing when it comes to selling it”, according to Harris.

Jeremy Yea, Senior Valuations Editor at car pricing business Cap HPI, added: “Depending on the age of the vehicle, franchise dealers may offer more on a part exchange valuation if they see a history conducted by an OEM-approved dealer/partner."

However, there are many other factors that determine a car’s resale value.

“A full service history could indicate to the buyer a well looked after and well-maintained car. That will likely have a positive impact on the valuation when compared with a car with little or no service history,” Yea said.

“Importantly, factors such as mileage, condition, specification and the type of vehicle brand will also vastly vary in terms of resale value and are more important. For example, less than average mileage and a well looked after car will command a better resale value. Some car brands also command a better residual value than their rivals.”

Harris agreed that if a car has not been serviced according to its schedule or is missing a stamp or too, the impact on value would be “much greater” than whether is has been serviced at a main dealer.

It's also arguable that any uplift in value from using a main dealer will be outweighed by the cost savings from using an independent garage. 

However, it is important to look at the total cost of car servicing.

Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle dealers in the UK, recently said that when it comes to the total cost of having a car serviced, having it done at a franchised dealer is often the same as independent garages.

Some premium car brands like Audi will also offer a free health check* - essentially a visual inspection of your car’s safety-related components to ensure it is safe and road-legal.

*Sometimes we show a link with a * next to it as it can sometimes result in a payment or benefit to the site.

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