Service history holes reduce car value by almost a fifth, says Kwik Fit
On average, the absence of a full service history knocks 19 per cent off a car’s value when sold. This is the finding of a survey recently performed by ICM on behalf of Kwik Fit. Of the 2,003 UK adults who took part in the survey, 45 per cent also said an incomplete service history is a deal breaker for them, and they wouldn’t even consider purchasing a vehicle that had service history holes.
“Car owners often skip services to save money but in the long run, this can end up being very costly. Not only does it reduce the vehicle’s value, it also makes the pool of potential buyers much smaller, making it harder to sell,” commented Roger Griggs, communications director at Kwik Fit. “Having a record that shows regular servicing gives prospective buyers confidence that a car has been well maintained, so even if you have one or two missing, frequent servicing is still important.”
The average price for a used car in July 2014 was £7,706; taking the abovementioned 19 per cent figure, the average used car would sell for £1,464 less without a full service history. Therefore, a fully stamped service book could be worth around £10 billion to the used car market annually.
Older buyers see the greatest value in a full service history with 57 per cent of survey respondents insisting they would not buy a used car without one. This compares to just 33 per cent of buyers aged 18 to 24. And Londoners are most likely to seek discounts for an incomplete service history – 23 per cent said they would expect the biggest price reductions, compared with 20 per cent in the South East down to 15 per cent in the South West. While main dealerships are the preferred source of service records, 37 percent of respondents said they’d place the same value on a service history from an independent garage as they do from a main franchised dealer.
“It’s not just about boosting the overall sales value though; vehicles that are serviced according to the manufacturer’s recommendations will also be more efficient, cheaper to run and generally better performing,” Griggs added.