Modifications Do Not Increase Price

Something that has bugged me from the first time I've heard it is how modifications do not increase the value of your vehicle.

It has never sat right with me. How does taking something that cost X amount and then adding extras to it that cost Y amount, not equal X + Y?

Look at the attached image:



Why does Toyota get to charge every single tiny little add on, even $70 for a "quick charge cable", but when we go to sell a vehicle, we are expected to NOT include the price of extras we have added.

If you go buy a new phone that comes with "extras", you have to pay for them. If Toyota sells you a truck with "extra", you have to pay for them. But if you go to sell your vehicle with "extras", you are expected to not include that in the selling price.

How does that make sense?

Slow day at work as you can tell haha

 

Those are factory options, not modifications. When selling a used truck those options do add some to resale value. Modifications are when you remove perfectly good factory parts and replace them with aftermarket parts. Most people who modify a vehicle want to pick the parts they use. If you find just the right person who wants your exact truck then you can get a bit more for it. Most people would rather start with factory parts.

 

If the buyer isn't interested in the mods, that's the thing.

I've heavily modded mine and I'm sure a lot of it wouldn't interest the average bear..then again I'm not selling mine.

 

In a perfect world modifications and accessories would increase the vehicles resale value.

If they buyer does not want any of those add ons. Why would they pay for them. This should also hold true for new vehicles.

Clean vehicles are worth more. If I'm buying a vehicle from an individual. I, the buyer should be getting what I perceive to be a deal.

In a perfect world the buyer should be getting a deal, and the seller should be getting a better sale price. Than if they would trading at the used car lot.


Would you pay more for a vehicle if the previous owner inflated the tires with nitrogen? I think not.

 

To build on @batacoma 's post..

One thing I did was upgrade the stereo..as in thousands of dollars worth. Someone who just listens to the radio won't care about that so probably won't be willing to pay the money for it

 

General rule is that you are very fortunate to get half of what you paid for your aftermarket parts.

Aftermarket mods are like ice cream, you pick a flavor that appeals to you.

Somebody else may not care for that flavor or not be willing to pay extra for it.

Factory options are under warranty just like the rest of the vehicle so the quality is a known quantity.

Aftermarket parts range from top of the line stuff to the cheapest Chinesium junk you can hang on a vehicle, and the average buyer has no idea which is which.

Never mind how well they were or weren't installed by the DPO (Dreaded Previous Owner or Dumb Previous Owner)

 

Find your target audience and then x+y = $

Some things you can expect to "lose money" on. It's the same with everything you buy. Not everything has a return investment in it. But for the right audience it might, and if you time your selling right then even those things that lose their value quickly can still be sold for a reasonable loss. Like electronics. Hold on to a certain smart phone for 6 years and don't expect to get anything from it. Sell it yearly, or every couple years, and you should be okay. But not everyone NEEDS to do that or cares to. Drop 15k on a a bunch of mods for a new truck and someone is going to be in that market if your time your sell properly. Also brings up the issue of possibly restoring said item. Is it worth it? The market is pretty crazy right now too. Lots of shortages across the board so it's not exactly hard to get your money back on a lot of goods.

Personally, I plan on keeping my truck for the duration. I plan on keeping a lot of things I've invested in over the past few years for a long time. Some people just need the newest and "greatest" all the time. It is what it is and it's been this way for a VERY long time - since before cars even existed. Always some form of investment that loses it's value over time. We are just living in the age of consumerism and you have to plan accordingly, or be prepared to keep what you have and maintain it.

 

I walked away from a modified '14 regular cab that I other wise wanted. I did not know who did the work, I did not know how the truck was used/abused.

 

What bugs me is the number of people that DON'T know that mods are pissing money into the wind. They hold a separate depreciation rate than what was bolted on at the factory. I could say that as a buyer I don't know how skilled the hands were that bolted on those mods, or whether they took the time to properly splice the correct gauge wiring or put in the correct control arms or that the grille bezel has all the plastic tabs intact...etc. I could also say as a buyer that your mods are not my taste and I would rather have a clean slate to fuck up the vehicle in my own unique way.

But none of my opinion matters, as the market is what it is, and the market says mods aren't worth squat unless you take them off and sell separately. There's always an exception - you could get lucky and find that unicorn teenager with stellar credit who thinks your truck is bitchin and is too dumb to argue price. Some people get lucky in that regard. Most don't. The market is what it is.

 

Ask your insurance agent how they value mods if your vehicle should be totaled.

Or even damaged in a way that some significant mods are in need of replacement.

Not in love with the insurance industry. But this does offer good representation on how the majority (not niche buyers) of the market works.

 

Last piece especially. To many, mods mean the vehicle was driven hard.