Selling your used car for the best price is a priority, especially in the booming UK used car market, where seven million pre-owned vehicles were exchanged last year. Factors like high mileage and damaged paintwork are well-known to lower a car’s trade-in value. But one often overlooked element that can impact the offer is an illuminated warning light. These lights can indicate underlying issues, and failing to address them may reduce your trade-in offer by up to £500. Dealers are wary of vehicles with warning lights because they signal potential problems that could hinder resale.
Owen Gregory, a vehicle appraiser at Big Motoring World, highlights the importance of a well-maintained vehicle when trading it in. A warning light signals that a car might require repairs or attention, making it less appealing to dealers. However, not all warning lights indicate severe issues. Many of them are common and can be fixed with relatively low-cost repairs, which could prevent a significant reduction in trade-in value. Therefore, addressing these issues before selling your car can make a noticeable difference in the offer you receive.
Among the most important warning lights to address before selling your car are the Engine Management Light, ABS Light, and Service Light. These lights are more than just minor annoyances—they can affect how much a dealer is willing to pay for your car. Ignoring them could lead to a substantial drop in the trade-in price. By fixing these issues beforehand, you can avoid the risk of losing money and make your car more attractive to potential buyers.
Engine Management Light
The Engine Management Light can indicate a range of issues, from minor problems like a loose fuel cap to more serious faults with the ignition system, spark plugs, or catalytic converter. A red light signifies a critical issue, making the car unsafe to drive, while an amber light signals a less severe problem. However, both need attention. Failure to address the issue can lead to a £500 reduction in trade-in value, as the car may not pass an MOT. Fortunately, some repairs, like replacing spark plugs, typically cost around £150, making it a worthwhile investment to fix the issue before selling.
ABS Light
The ABS Light indicates a potential problem with the anti-lock braking system, which is essential for safe braking, especially in emergency situations. The fault may be something as minor as a sensor malfunction, but dealers will often reduce the trade-in offer by at least £500 if the ABS light is on. The good news is that fixing this issue, such as replacing a faulty sensor, can cost around £70. Addressing the problem before selling the car can increase its appeal and prevent a significant drop in value.
Service Light
The Service Light indicates that it’s time for a routine maintenance check, usually due every 12,000 miles or 12-24 months. This service typically includes checks on the car’s key components, such as tires, brakes, and fluid levels. Ignoring this light could lead to a trade-in value reduction of around £200. A well-maintained vehicle with a good service history is more attractive to dealers, as it suggests the car has been properly cared for. The cost of a service typically ranges from £170 to £300, and having the work done before selling will increase the car’s value.
Addressing warning lights such as the Engine Management Light, ABS Light, and Service Light before selling your car is a smart financial move. These lights often indicate issues that can affect your car’s safety, performance, and desirability to dealers. While repairs may seem costly, they are typically far less than the value you stand to lose by ignoring them. By investing in fixing these issues, you can ensure a higher trade-in value and make your vehicle more attractive to potential buyers.