When it comes time to sell your car, you want to make sure you get the very best price possible.
With the market becoming more competitive in recent years, it can be difficult to decide if you should trade-in a vehicle with issues and take the hit, or pay for the car to be brought up to scratch in the hope you get a much better price.
This includes fixing scratches and dents, replacing consumable parts and – in this case – fixing a problem that has triggered a warning light to come on.
A professional vehicle appraiser for one of the biggest second-hand car traders has told us which illuminated warning lights on the dashboard can cost you £500 in a lower offer when you want to part-exchange.
Damaged paintwork, a patchy service history and high mileage are all things that can affect the value of your car. And a dealer will typically reduce the amount they offer you if the vehicle has warning lights on the dashboard – but how much?
More than 7.2 million second-hand motors changed hands last year – an increase of 5.1 per cent on 2022 – meaning there’s more choice to buyers than before.
It means factors such as high mileage, a patchy service history and damaged paintwork can all impact the value of the vehicle you’re trying to sell, meaning you’ll get less money to put towards a new one.
And having a warning light on the dashboard will also devalue the price of your car.
This is because they typically point to underlying issues, and lead dealers to perceive your vehicle comes with greater risk and will need work carried out on it before they can put it on sale.
Some repairs required to deactivate these warning lights can be expensive though.
It means sellers need to ask themselves when does it make financial sense to fix the issue, versus ignoring it and taking the financial hit when the dealer offers you a price?
Owen Gregory is a professional vehicle appraiser at used car retailer Big Motoring World. He says there are three warning lights that will reduce the value of your vehicle by up to £500
Owen Gregory, a professional vehicle appraiser at used car retailer Big Motoring World explains: ‘When bringing your motor to us for part exchange, we want to know how well the car has been looked after because it directly affects how easy it will be for us to sell it.
‘If you’re bringing us a car with a warning light on, it’s a bit of a giveaway of the overall condition of the car. It tells us there could be a problem with it, and that might hinder our ability to sell it quickly.
‘Don’t panic if you see a warning light though, as they don’t necessarily indicate a major problem.
‘These are more common than you might think and can just require a simple fix for a minor issue that is relatively cheap to do.
‘Taking care of the issue before you try to trade in your motor can make your car more attractive so it’s definitely worth looking into.’
The severity of a car dashboard warning light is based on the colour of the symbols.
Red indicates a problem that needs to be addressed, such as a battery fault or low oil pressure, which need to be looked into immediately.
Orange or yellow lights indicate a problem that needs fixing but might not be as urgent as a red symbol.
According to Owen, there are three warning lights that you should address before taking your car to a dealer to ensure your vehicle value isn’t massively affected:
1. Engine management warning light
Typical reduced trade-in priced: £500
If there is an engine management warning light on the dashboard of a car you’re selling then expect a dealer to lower their offer to buy it off you
There are two types of engine management light you need to look out for.
Owen says: ‘Your engine management light can refer to several faults such as problems with the ignition system, faulty sensors, or an engine misfire, as well as larger issues like the clutch or catalytic converter.
‘A red light indicates there is a serious issue, and the car is not safe to drive. The amber light represents a less serious issue which shouldn’t impact your ability to drive the car but either way, both will need addressing.
‘Obviously this is quite a wide range of potential issues, so the best thing to do is to contact a qualified mechanic for a precise diagnosis. They will be able to reset the light once the problem has been addressed.’
Owen says an appraiser would typically deduct around £500 from the offer on a car with one of these waring lights illuminated, though added that it would also depend on factors such as the make and model of the car.
‘The bottom line is a car with an engine management light will not pass an MOT and is therefore a red flag for dealers, so getting this sorted before bringing it to a dealer will make the car more desirable, meaning more money for you.’
With cars, there’s always the fear that repairing a problem linked to triggering an engine management warning light could cost in the high hundreds of pounds, but it could also have been activated by something as minor as the fuel cap being loose, or issues with the spark plugs.
The latter can cost on average £150 to replace, but the loss of value by not fixing this is likely to be a lot higher.
2. ABS warning light
Typical reduced trade-in price: £500
An ABS warning light could be triggered by something as minor as a faulty sensor. Having it resolved before trading in could be cost effective
Another common light that can affect your trade-in price is the anti-locking system light.
Owen explains: ‘If we see the ABS light on when undertaking an appraisal, we’ll knock off at least £500 on the trade-in price.
‘Given that it’s a computer-controlled system, the fault could be something as minor as a sensor that needs replacing, which wouldn’t come close to £500.’
He added: ‘It’s important to get this looked at before bringing your car to a dealer because the light indicates an issue and it’s a big turn off.’
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The good news is that an ABS warning light could be due to an issue as minor as a faulty sensor. Fixing this typically costs close to the £70 mark on average.
Fronting the relatively small cost will boost your car’s appeal and your final payout when you go to sell though.
3. Service light
Typical reduced trade-in price: £200
A service warning light needs to be actioned within a month or 1,000 miles. Prices can vary depending on whether it is a full or major service interval
According to Owen, you don’t need to be alarmed if you see the service light comes on because it is simply an alert to remind owners when their car needs to be booked in.
Services are generally required within 12 months or 12,000 miles, whichever comes first. However, this can differ depending on brand and the car model.
If the car you’re selling is still within warranty, then you will need to adhere to the recommended service intervals within a month or 1,000 miles to ensure the warranty remains valid for the next owner, so this will also play a part in deciding if you should pay for a service yourself or take the hit when you move it on to a dealer.
‘Regular servicing helps keep your car running smoothly and efficiently and prevents breakdown from worn parts by replacing them. If we see a car with a service light on, it prompts us to reduce the trade-in price usually by around £200,’ Owen said.
‘When dealers, or anyone for that matter, are looking to buy a car, it’s important they can see a car has been looked after with regular maintenance, so it’s best to book a service if the light comes on if you’re thinking about selling.’
A ‘full’ service typically cost anywhere between £170 and £400 depending on your car size and the requirements. However, a ‘major’ service – which includes additional checks and replaced parts – can be a lot pricier.
A dealer will take this into account when they offer you a reduced amount for your car that you’re trading in with a service light on.
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