Knowing the real worth of a car when you are buying or selling it, can make a world of a difference. But many still get thoroughly confused by the number of details they need to consider and by the lot of conflicting information they hear around.
But, properly assessing the value of your car needn’t be an excruciating process. There are many valuable insights that can guide you through this so that you value your car as precisely as you can.
Where to Start?
When it comes to cars that have just been recently bought, we have some bad news for you. Unless you are the buyer, of course. According to Nissan service centre, mainstream production cars usually lose about 60 percent of their original value over the course of only three years. It’s for this reason that a lot of people choose to buy a pre-owned car instead of a brand new one. Of course, there are brands that will depreciate faster and some that will do so slower. Usually, it is the budget brands that tend to lose value quicker.
The downside to this is that after an approximate eight years down the line, most cars are unlikely to depreciate any further.
What Are the Factors You Should Consider?
It is, therefore, a mix of age and brand that will weigh heavily upon the valuation of your car. And while there is not much you can do about those to improve your car’s value, there are other things that you can do. A big, not so surprising one is the way you drive and care for your car. What most car buyers value above anything is both, the car’s overall condition and its mileage. Unfortunately, a used car with a lot of mileage might value way less regardless of how well you’ve taken care of it.
Try to assess your car by looking at not only the overall condition but also at the following aspects such as mileage and equipment level.
Overestimating the value of one’s car is where most car owners go terribly wrong. And as much as you might not think it to be true, you probably do it in a way. This is the part where you need to look at your car as objectively as possible. If anything, try to evaluate its condition as if you would be a buyer. Would you buy this car? And if so, how much would you be willing to pay for it compared to other similar cars you have just seen? What are the flaws you should look for and what are the good sides of it? Write all these things down and only then try to evaluate them. You might find out that you will get a pretty different result.
Analyze the Used Cars Marketplace
The car itself is not the only one dictating its final worth. There is another complex factor you need to look at and understand – and that is the resale marketplace. Your car might have different values in different periods or geographical spaces, and that mostly has to do with the demand for that given time and space. At the same time, you will have to be able to look at the market and correctly identify what is the perceived value of your car compared to what other offers there are. A car’s resale value can also be highly influenced by the popularity of the brand and how trendy it might be at that moment. Remember, it is, after all, a competition based system – everyone wants to get the best possible deal.
Minor Touches Go a Long Way
There’s no need to get your car, a plastic surgery, even though people are clearly drawn to gorgeous looking cars. It is simply not worth the trouble and the heavy costs it might imply. Instead, go for some minor fixes that will take you a long way.
Having your car perfectly cleaned, waxed and looking sharp will give the impression that the car has been cared for very well. A dusty, scratched car with cracked lights is a big turn off for many buyers – it just sends the message that there might be other hidden damages to the car. In one word, it sounds “risky”. Invest a bit of time and money into this, and the results will be well worth it.
Putting a price on your beloved car is not an easy task. Hopefully, these tips will help you figure out the right price.