Can You Modify A Car Without Destroying Resale Value?

Car modification is big business. Thanks to billion dollar spectator motor sports such as Formula 1, Indy Car Racing, Touring Cars and the World Rally Championship, as well as films such as Fast and Furious, everyone wants a car with at least a little hint of attitude…like maybe some cool lights, a body kit, an upgraded exhaust system, etc.

This heavily modified classic is probably a great dragster, but it would be worth a lot more money if it was all original. A LOT more...

The problem is, many after-market accessories and vehicle modifications can hurt resale value. Adding a big wing and a lowering kit, for example, will only cause your car to lose value. It’s ironic that adding thousands of dollars worth of after-market extras can hurt resale value, but it’s true.

So, what can you do to ensure your car loses less value if/when you add an after-market accessory or modification?

Make of Car

First things first, by choosing the right type of car, you will immediately slow down the rate of depreciation. Certain car brands such as Honda and Toyota hold their value better than others, as do Toyota trucks. Beyond those general guidelines, you might want to check out what KBB.com has to say about the relative resale value of the car you’re thinking about modifying – see KBB’s Best Resale Value Awards reports for more info.

Another thing to consider: While luxury cars like Lexus and Infiniti hold their value exceedingly well, it would be foolish to modify one. This is because your typical Lexus or Infiniti buyer is looking for a luxurious, worry-free automobile. One look at a Lexus with a loud exhaust system or racing seats and that’s it – they’re moving on to another car.

Choose a Tasteful Modification

Once you have your vehicle, you need to make a wise decision when choosing what to do to it. Generally speaking, if they accessory or modification isn’t plainly visible, it’s unlikely to hurt resale value. Conversely, the more visible an accessory or modification is, the more it can hurt. Listed below are some examples of accessories/modifications that will or won’t hurt resale value.

Accessories and Modifications that Generally Hurt Resale Value:

• Radical paint jobs, graphics, or interior style elements
• Body kits, add-on spoilers, hood scoops, etc.
• Very loud exhaust systems
• Painted panels in the interior
• Poorly installed interior accessories (especially after-market stereos with poor fit and finish)
• Fire extinguishers, roll cages, racing seats, and any other accessory commonly associated with racing like special seat belt harnesses, dash gauges, etc.
• Superchargers, turbochargers, and especially nitrous oxide systems
• Blatantly obvious lowering kits

Accessories and Modifications that Generally DO NOT Hurt Resale Value:

• Simple performance upgrades like upgraded engine programming, cold air intake, or an exhaust system with a reasonable sound level
• Upgraded wheels, shocks, or mild suspension adjustments
• Bike racks, radar detectors, and any other accessory that’s easy to remove without damaging the vehicle
• After-market leather seats or an after-market sunroof

Trucks and Cars are Different

To this point this article has addressed cars more than trucks, which is to say that in many cases adding accessories to a truck helps resale. Examples include larger wheels and tires, lift kits, tonneau covers, bed liners, exhaust systems (provided they’re not overly loud), grille guards and after-market bumpers, winches, etc.

In fact, it’s much more likely that your typical truck accessory or modification will help resale value more than hurt it.

Legality

Finally, you need to ensure that above all, what you change on your car is legal. Certain types of modification could invalidate your insurance or make registration impossible, so it’s best to check if you’re not sure. Examples include removing catalytic converters, adding electronics or performance parts that cause check engine warning lights to set, or modifications that remove or disable key safety components.

About the Author: Anton Ringerson is a performance car parts installation expert. He recently fitted Hel brake lines and Ferodo brake pads on his Audi TT, now all he needs is a cool Audi exhaust system.