Car Valuation: What factors determine used car prices
Just like the property, a car also serves as an investment. Thus, before paying any money, you should know all the factors that influence the price of a car. While model, manufacture year, and the kilometers are driven are the primary contributions, certain other factors are also crucial in deciding the price of a car. According to statistics for June 2021 car sales, 2.55 lakh unit cars were sold as compared to June last year, which was only 1.17 lakh. YoY (year of the year) growth is 119%, while MoM (month of the month) growth is 148% when compared with previous sales.
If you are looking to buy or sell a car, we have in-depth research on all the factors that determine the car valuation.
What is Car Valuation?
The car valuation report is crucial in determining its price as these values inform the buyers about the car sales revenues. Thus, the report monitors multiple factors. Therefore, it is beneficial for the buyers to negotiate competently on the prices if they have a valuation report. There are many car valuation tools on the web that provide pricing reports.
Let’s start with the factors:
1.Condition of the car to check used car price
The infrastructure or the condition is one of the apparent factors determining the value of a car. A less used car with an excellent outer and inner infrastructure would attract buyers easily and be sold in return for a good revenue. While the car having wear and tear, or some damages would be sold cheap. A damaged car cannot be used to generate good revenues. The infrastructure is one of the key points included to check used car price only to determine the accurate cost of the car. Even if a buyer agrees on a damaged or faulty car, they will pay much less fee than what the car deserves.
2. Tenure of ownership
The period of ownership is determined by two factors- the duration in which the original owner used the car and the number of times the car has been resold. If a car is used for more than 3 to 5 months, it will still have a more excellent value. But if the car has been resold more than once, then its value is likely to degrade.
3.Service history of the car
Vehicles need servicing from time to time to increase their lives. If a car has been looked after, its value will be more. On average, a car needs oil and filter change annually. Not only does it result in a good performance but also keeps the car’s condition good.
4. Kilometres driven
Every car comes with a fitness certificate that is valid for up to 15 years. However, if a car has been driven longer kilometers, it is likely to age more than the one gone less. So, a car with a lesser odometer reading is likely to have a better value. All the petrol engines are rated good that is driven less than 200000 km. Kilometers play an important role when it comes to used car valuation, it gives estimated market value according to a car driven with other important factors.
5. Year of manufacturing for online car valuation
The age of the car is calculated by the year of manufacturing. A car that has been used for a long time is never recommended for resale. If a car has 2-3 years of life left, it is mainly considered as scrap. To know about a car’s wellness and fitness, the year of manufacture plays a crucial role. A car that has age on papers is always unfit for wearing, according to automotive authorities.
6. Car variant for car valuation
It is ubiquitous that some brands offer a higher resale value than some others. While buying a car, it should be kept in mind whether your vehicle has a great resale value. Else you would be at a loss when you sell the car. If sold to a sole buyer, the vehicle with less resale value would offer fewer revenues, but if sold to a buyer who appreciates the car may offer a better deal. Thus, apart from the car’s features, its variant makes a significant difference in pricing.
The sales revenue also influences cars prices as the highest revenues are always generated through private sales. While listing the car and waiting for buyers would only result in lesser payments. To sell a vehicle through an auction or with the dealership would get the seller good money.
Before you decide to sell your car, make sure it is in good condition and well serviced as a great appearance would attract buyers firsthand. And must consider all the above-mentioned points before buying a used luxury car. These factors will help you to find a great deal.