Used Car valuation process
The used car valuation process is not a challenging task if you know how to do it. You need to consider some factors while doing valuation and you are good to go. It is important to note that the brand and model of the car may differ, but the valuation process for every car is nearly the same. So, if you want to sell your old car or you are thinking of buying it, you can always keep in mind the below-given factors to ascertain the accurate value of the used car to get a fair price. Read this handy guide to understand how these factors affect the resale value of the used car.
- Condition of the Vehicle: One of the most important factors which affect the car’s valuation is the condition of the vehicle. It includes how much wear and tear the car has undergone with its age. Your car's value largely depends on the extent of the damage it has. You can expect a good value if the car is visually appealing and has lesser damages. On the other hand, no one will be willing to quote a higher price for your car if it is not in good condition.
- Number of Kilometers: Odometer reading is also one of the most crucial factors in valuing your car. The higher the number of kilometers in your car’s odometer, the lower will be its valuation. It is because the car has been used enough that has caused higher wear and tear in the vehicle. On the other hand, a lower reading on the odometer will always command a higher price.
- Year of Purchase: In addition to the number of kilometers driven, the year of purchase is also considered during the car valuation process. If your car is older than 10 years, it will significantly impact the price of the car. In certain cases, a particular vehicle model may be discontinued by the manufacturer. In such cases, it might be difficult for you to find spare parts for those vehicles. The valuation of these vehicles might be lower than the valuation of the vehicles that are still in production.
- Service History: A car’s service history can provide a lot of information about the current quality of your car. If you have a full-service history, it will help you in getting a better price for your car because it will assure potential buyers that you have looked after the vehicle and had it regularly checked by professionals at frequent intervals.
- Accident History: It is obvious that damaged cars have lesser resale value. However, this also holds in the case, where cars are fully repaired after an accident. The car's valuation will be done based on the level of the damage. If the damages are only cosmetic, the resale value of a car may not be heavily affected. And if your car has sustained any major structural or mechanical damages, it could significantly bring down its price in the car valuation process. Therefore, buyers prefer to look at the insurance claim history of a car to know its accident history.
- The Sales Channel: One of the largest determinants of your car's value is the sales channel, i.e. the way you are choosing to sell your car. You can expect a higher price if you are selling it through used car dealers. The process is also quick as the dealer takes responsibility for documentation and checks. On the other hand, your car's value will be much lesser if you go for private sales, it will also put the onus of antecedent check on the seller and hassle of transfer of papers on the buyer.
- Car Color: It may also have a major impact on the sale price. But there is no such hard and fast rule regarding which color will attract the buyer and will fetch you a higher price while selling. In some cases, unpopular colors for one model can be popular for another car. You need to check this information beforehand and its effect on the resale value of your car.
- Modifications: Any type of modifications or personalization in your vehicle down the resale value of your car. So, if you are selling a modified vehicle, you might not get the best price for your car from the buyer. This is because the buyers may doubt the quality of modifications performed in a vehicle.
- Other factors: Besides the ones mentioned above, there are certainly other factors that affect the valuation of used cars. For example, the location of the vehicle is also likely to affect its resale value. Certain vehicles tend to perform well in certain locations. This could mean that the demand for a used car may also vary based on specific locations.
Used Car Valuation Online
Based on the factors listed above, you can get a fair idea about the resale price of your car. If you are not sure about how to value your vehicle, you can make use of an online used car valuation tool to get the approximate price. You can easily find websites online that can help you with this task. All you need to do is enter the vehicle details including brand, model, version, location, ownership, etc. After entering these details, you can get the approximate value of your car.
Tips to get a better valuation for your car
Put your focus on the exteriors: The exterior look of the vehicle is the first thing that impresses a prospective buyer. A car with fewer scratches, rust damage, and no dents will get a better price as compared to a car that is full of scratches and dents. Hence, fix all the exteriors of your vehicle before negotiating its value.
Maintain a service history- Some car owners neglect this aspect of vehicle maintenance. Besides maintaining your vehicle, you also need to save the service records. By showing the service history to the prospective buyer, you can provide proof that your vehicle is well-maintained. In this way, you can get a better valuation for your car.
Ensure proper driving- Most buyers often seek the help of car valuation experts to check the condition of a car. If you do rash driving, the automobile expert can easily identify it through the condition of the car. It will drastically affect the resale value of your car.
Use genuine replacement parts- Replacing worn-out parts is a common thing in vehicle maintenance. When you have genuine replacement parts in your car, you can use that to get a better valuation for the car.