Home Money Car Appraisal Experts Warn About Modifying a Vehicle: Here’s Why

Car Appraisal Experts Warn About Modifying a Vehicle: Here’s Why

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Experts warn drivers not to modify their car because it can greatly increase insurance and end up putting a dent in resale value.
  • Car modifications can cause resale issues as well as insurance invalidations.

It can be tempting to modify your car—a vehicle with unique touches can reflect your taste and character almost as much as a house does.

But while it may seem like a good decision to modify your wheels, This is Money can reveal that valuation experts are issuing fresh warnings to motorists to avoid doing just that.

This is because car modifications can cause resale problems as well as insurance invalidations, according to exclusive research from cap hpi.

Jeremy Yea, senior valuations editor at cap hpi, says: “Overall market appeal is significantly reduced as some modifications may appeal to specialist buyers but limit the overall market for the vehicle.”

So what is the extent of the impact on resale value and insurance, and what should you know if you’re considering moving forward with modifications?

Here’s what experts advise doing and what No What to do when modifying your car…

Experts warn drivers not to modify their car because it can greatly increase insurance and end up putting a dent in resale value.

How do modifications change the purchase price?

Adding modifications can detract from the potential purchase price of vehicles because most buyers prefer cars without modifications.

Even cosmetic changes can negatively affect value, cap hpi says, as “poorly executed paint jobs, body kits or decals significantly reduce a car’s appeal and value.”

Jeremy Yea comments: “Resale values ​​generally decrease with modifications as they are usually designed to suit the tastes and style requirements of the original owner.”

Engine and performance modifications can be particularly problematic.

Extreme engine modifications, such as ECU remaps or larger turbos to increase power, can raise concerns about potential reliability issues and even maintenance costs.

Similarly, hpi warns that non-original or unauthorized replacement parts may reduce the value of the vehicle due to potential risks and warranty issues.

Yea explains that, in general, “the effect of modifications on the overall value of a car depends on numerous factors, such as the quality of the work, the reversibility of the modifications, and legality, since unapproved or illegal modifications decrease the value and can render the car unroadworthy and uninsurable.

Will the modifications void warranties and affect insurance?

Fans of the Fast & Furious movie may want a car with a nitrous oxide mod like Vin Diesel, but they could end up paying a 378% premium on their insurance for it.

Fans of the Fast & Furious movie may want a car with a nitrous oxide mod like Vin Diesel, but they could end up paying a 378% premium on their insurance for it.

While manufacturer modifications tend to be fine, non-manufacturer modifications can void warranties and affect insurance if not fully declared.

Hpi also warns that some buyers may be unaware of the modifications at the time of purchase.

In 2021, This is Money and Go Compare revealed 10 of the most expensive modifications that increase insurance premiums, with the Fast & Furious-inspired nitrous oxide kit, which adds power to a car, topping the charts.

It added £2,462.64 (a 378 per cent increase) to the average premium for an unmodified car.

Even cosmetic modifications, such as side stripes, can add a 178 percent premium to the cost of car insurance, the research found.

Cap hpi recommends always keeping the original parts to potentially reverse modifications before selling them

Cap hpi recommends always keeping the original parts to potentially reverse modifications before selling them

THE TEN MOST EXPENSIVE CAR MODIFICATIONS THAT AFFECT CAR INSURANCE 2021
Range Modification type Average car insurance premium (January-December 2020) How much will this modification cost me for my insurance? % difference in price
1 Nitrous oxide kit £3,126.74 £2,462.64 378%
2 Blue print £2,074.18 £1,410.08 212%
3 Flared wings £1,884.02 £1,219.92 184%
4 Side stripes £1,847.25 £1,183.15 178%
5 performance badge £1,756.71 £1,092.60 165%
6 Magnetic/removable signs. £1,549.40 €885.30 133%
7 turbocharger £1,489.06 €824.96 124%
8 Hood bulge £1,362.90 €698.80 105%
9 Back border £1,311.33 €655.78 99%
10 Widened wheel arches £1,311.33 €647.23 97%
Source: Go Compare, 2021

How can you modify a car without causing problems later?

HPI says certain procedures should be followed when modifying any car to avoid devaluing it or hampering its market appeal.

First of all, always keep the original parts to reverse possible modifications before selling them.

Second, focus on upgrades that improve vehicle performance rather than purely cosmetic customizations.

Third, make sure the modifications are installed by professionals using quality parts from reputable brands.

And finally, consider the long-term impact on insurance and vehicle integrity – will it be worth it in the long run? Or is it simply a reckless whim?

Did you modify a car and regret it? editor@thisismoney.co.uk

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