Facelifts add value... really
Mid-life facelifts are a measure used by car manufacturers to sustain buyer interest in their offerings, but these nip-and-tucks can also add value down the track (read resale time).A survey conducted by EurotaxGlass's -- a leading supplier of automotive business intelligence in Europe -- indicates that simply updating the exterior styling of an existing model can improve its residual value prospects by as much as 15 percent during the first year of ownership.
The study notes that facelifted cars often cost the same or only marginally more than the outgoing model, and yet the residual value performance is significantly better, particularly during the first 12 months.
Although updates to the styling are often accompanied by under-skin changes, evidence suggests it is the more distinctive new styling treatments that generate the greatest uplift in demand and a consequent improvement in used prices.
EurotaxGlass's compared the trade values of a range of cars before and after they underwent mid-life facelifts and their findings indicated that used-car buyers will often pay substantially more for the latest styling.
Interestingly, the facelift premiums were greatest for vehicles wearing prestige badges such as Audi, BMW and Porsche. For example, their survey indicated that, in the UK, a Audi A4 2.0 SE CVT with the marque's new corporate grille commands a $4285 premium over the pre-facelifted version of the same car registered just weeks earlier.
Similarly, a facelifted BMW X5 3.0i registered in the UK in early 2004 is worth $2400 more than the same X5 built immediately prior to the facelift. Likewise, a 2001 facelifted Porsche 911 Carrera 2 Tiptronic has a $3350 premium over the pre-facelift model.
Think this is just a Euro phenomenon? Think again. Australian industry bible Glass's Guide indicates the same applies here. A post-March 2003 BMW 3 Series, for example, can be worth up to $6000 more than a car sold just months earlier.
Pretty much the same applies to most marques and models, so it's worth keeping this in mind when you're shopping for a new (or used car). If you end up plumping for a pre-facelift model, bargain hard to make sure you don't get burned when resale time comes around.
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