Motorists could see a significant drop in the value of their second-hand cars due to one decision that’s likely to backfire, according to experts at automotive data firm HPI, who warn that car modifications could negatively impact resale values by limiting the number of potential buyers.
Modifications can be categorised into two types: cosmetic changes and performance upgrades for petrol and diesel vehicles, both of which can affect how a car is perceived in the market. Jeremy Yea, senior valuations editor at cap HPI, highlighted the detrimental effect a supposed upgrade could have on models across the UK.
He said: “Generally, resale values are decreased by modifications as these are typically designed to suit the taste and style requirements of the original owner.”
Generally, resale values are decreased by modifications as these are typically designed to suit the taste and style requirements of the original owner.” The effect of modifications on a car’s overall value depends on numerous factors such as the quality of the work, reversibility of alterations and legality – as unapproved or illegal modifications decrease value and can make the car unroadworthy and uninsurable.”
Meanwhile, engine and performance modifications such as ECU remaps or turbos to increase the bhp output can be a massive red flag for many. These parts can raise reliability concerns and indicate that the vehicle could be set for potentially high maintenance costs later down the line.
Finally, there is likely to be some concern from used car buyers that some car modifications could even lead to legal concerns. According to HPI, some non-manufacturer modifications can invalidate warranty agreements in a major blow to owners.
Meanwhile, some upgrades can also have an impact on car insurance policies with owners of some parts likely to pay more.