New cars come with more personalisation options than ever; no longer is an extensive options list the preserve of the luxury car buyer. Buy a city car or supermini and you can still easily spend thousand of pounds on extra equipment – the question is, how far should you go?

It would be easy to think that when you buy a new car you should choose the specification according to your own wishes and requirements. But it’s always worth thinking ahead, as you could end up seriously out of pocket if you don’t.

The key thing to consider when ordering your new car is how long you’re likely to keep it. If you plan to keep it until it drops, how well it holds its value isn’t really a consideration. So if you’re going to keep your car for a decade or more you might as well spec it exactly how you want it as you’ll enjoy using it that much more.

Few people keep their car that long though; they’re more likely to replace it for something newer after 3-5 years. This is where you have to be much more careful with the options list; get carried away and you could lose a fortune at trade-in time.

Keep in trim

All mainstream car brands offer a choice of trim levels for their cars – it can be anywhere between a couple and a dozen or so. Moving up a trim level brings more standard kit, and sometimes the opportunity to choose more options too. So choosing a trim level high up in the range will allow you to select more extras than if you were to buy an entry-level model.

It may seem tedious, but it’s really important that you pore over the price lists and spec charts of any potential new-car purchase – you need to know exactly what you’re getting for your money as you move up the hierarchy. Sometimes a mid-range model offers the best value, sometimes it’s entry-level or range-topping editions.

Instead of buying a model at the bottom of the range then spending plenty on options, you’re probably better off going for a posher trim level with more standard kit, which may prove to be a more cost-effective purchase.

Also, don’t forget that when you come to sell, your car’s value will be dictated in part by its trim level. So a range-topping trim with no options will often be worth more than a mid-range trim that’s been loaded up with extras.

A question of class

With some extras you’ll get a decent proportion of your money back when you sell after three years. But choose badly and your car will be worth no more than if it was completely standard. The classic example is metallic paint, because colour is so important in valuing a car. Saving £300 at purchase time could end up costing you very dearly.

However, the type of car is crucial here; something that’s deemed essential on a Mercedes E-Class could be a non-starter on a Ford Focus – such as xenon lights or leather trim. It’s the same with automatic gearboxes; they’re popular on city and luxury cars, but few buyers of small or medium-sized family cars are interested in them.

Although options cost you, with some of them you’ll get absolutely nothing back at resale time. It depends on which type of car you’re buying though; while alloy wheels are essential on any car costing over £15,000, they’re worthless on most city cars. With constant kerbing, by resale time the wheels will be looking very tatty so they’ll have to be refurbished or replaced – which isn’t cheap.

Sunroofs are also generally unwanted (although panoramic roofs are popular), and with many electric systems costing over £1000 they’re a poor choice. They rob headroom, and with air conditioning now expected in any car, a sunroof isn’t necessary any more. It’s the same with built-in DVD players, which usually cost over £2000; it makes more sense to buy a portable unit for £150, as it can be swapped from one car to another.

There are certain pieces of equipment which will make any car easier to sell (and potentially more valuable) at resale time, whatever its size. These include air conditioning, parking sensors and Bluetooth, while auto emergency braking (or city braking) is usually cheap but can make quite a difference to your insurance premium – as well as the chances of you crashing in stop/start traffic.

Packing it in

Car makers have found a new way of parting buyers with their money in recent years; the option pack. Instead of buying one piece of equipment you buy three or four together, at a lower rate than if each one was listed separately. Sounds like a bargain but the chances are that you want only some of the pieces in the kit rather than all of them – but you’ll buy the whole lot anyway…

Another way to spend more money is by specifying the most expensive of a type of option. For example, while leather trim is expected on any executive car, it’s possible to choose from various types on many models. So while a standard leather trim might be a £1200 option, there might be a more upmarket alternative that costs two or three times as much – and at resale time you’ll be no better off by choosing it.

Crucially, how you sell your car will also affect how much you get back for some options. Dealers are hard-nosed about cars, seeing them as a commodity and will pay as little as possible for them. Private buyers see things differently; they’ll pay more for a car with certain extras, so it’s even more worthwhile choosing certain items of equipment.

The bottom line when choosing the spec of your new car is to make sure that you don’t get carried away and tick too many boxes. It’s like extending a house; you can turn a cottage into a mansion, but unless you move it to another location, there’s a limit to what people will pay.

Richard Dredge

May 2016