What is There To Know About The Car Valuation?

Share

It may seem as if selling your used car is the easiest thing in the world.  All you need to do is take it to a dealer, he’ll give you money for your car, and you’re good to go. In a way, it is that simple, but there are a couple of things that you should know about car valuation. If you’re planning on selling your car either to trade it in for another or to buy one from somewhere else, it’s important to know the value of your vehicle.  The worth of your car will impact future decisions.  If there is a significant difference in the value of your used car and the price of the one that you want to purchase, other financial options must be considered.  After all, buying a car is a substantial expense, and the budget has to be managed.

Everyone knows that dealers offer a slightly lower price than that of a private buyer.  So why do people still prefer to go the car buying company?  Simply put, in a private sale, there is no warranty; once the deal is final and you drive away with the car, whatever happens afterward is solely your responsibility.

But with a dealer, they are legally obliged to fix or replace it to the reasonable value of the sale you completed.

Having said that, the first thing you should consider is how to get the most money for your car.  A number of factors influence the value of your vehicle.

You can get your car evaluated by two methods:

  1. Physically

This is self-explanatory.  You will have to take the car to a dealer yourself where it will be inspected thoroughly.

  1. Online

By submitting the car’s number plate and mileage on the car buying website, you can find the value of your Car.  From the comfort of your home or office, you can instantly get an estimate.  You can save time by doing it online.  Plus, you can compare the price offered for your automobile from various sites.  You will have additional knowledge to negotiate the best deal.

A basic valuation report would give the following information:

  • Car Details – its registration date, average mileage based on its age, color, and model
  • Original Market Value – the retail value of the car when new
  • Private Selling Price – in outstanding as well as in poor condition
  • Trade-in Price – how much you’d be offered as an exchange

A vehicle’s true value is affected by other factors.  Since everyone is in for the money, you as the seller, what the best price.  Here is what you should look into:

  1. Age

Automobiles tend to lose a lot of their value as they get older.  It costs more to maintain them regularly.  Obviously, you won’t get as much for an older model than for a more recent one.

  1. Mileage

Generally, cars with a lower mileage achieve a better sale.  The greater the distance, the more the value depreciates due to increased wear and tear.  An automobile that isn’t used as much will be in better shape than one that has been out on the road longer.

  1. Condition

A vehicle that is in a better condition retains more of its value than a car that has had an accident.  Any damage devalues the automobile.

  1. Maintenance

Regular servicing and maintenance improve the worth of your vehicle.  Any vehicle that has documents showing the history of care is more likely to get a better price than one that hasn’t seen a workshop in a while.

  1. Presentation

A dirty or smelly car will not fetch a reasonable price.  The buyer knows that it will cost extra to clean it. With just a little effort, you can raise the value of your car considerably.  Another point to consider is the quality of the photos that you upload.  They should be taken in a well-lit place from a variety of angles.  Don’t forget to include interior shots as well.

  1. Fuel type

Petrol cars are more adaptable for traveling within the city or short trips.  But a diesel car is designed for longer journeys.  Depending upon the purpose and use of the car, a petrol car with greater mileage may bring a lower price than a diesel car that has traveled the same distance.

  1. Brands

Some brands hold more importance than others.  It’s one of the most significant factors that dictate the value of your car. Certain brands are favored such as Toyota, BMW, and Mercedes-Benz among car enthusiasts.  But because of the altering nature of the automobile industry, the popularity regularly swings from side to side.  A common car model with no stand-out features may not fetch an attractive price.

  1. Demand

Demand can significantly affect how much your car is worth.  For some models, this varies due to several factors such as time of year, location, country preferences, etc.  A convertible will be valued more in the summer than in winter, while location and infrastructure can control popularity in other areas.  For example, cars in cities that are close to the sea have a lower resale value because of the salty air.  Similarly, towns booming with businesses will have a higher demand for vans.  But sometimes preferences within a country can also influence the overall market.

  1. Colour

It’s true that certain colors retain their value better than others.  Black, grey, white and silver are still more popular than others.  As a result, they are valued more than others.

As a general rule, if you want the best valuation for your car, you have to put the time and effort to maintain your vehicle.  Have your vehicle inspected by a mechanic before getting it evaluated?  That way you can fix any problems that could drop the value of your car – and scare away potential buyers.  And remember to keep all documents valid and up-to-date, such as MOT and service records.

Share