Have you been considering the idea of selling your car or just wondering how much it would fetch you in the current automotive market? There are sizeable factors that come into play in estimating the value of your car. While ascertaining the price of your car is not based on guesswork, you may not want to spend any money to find out its value. Hence, there are multiple approaches such as using car value calculators, evaluating prices in the local market, check online auto portals and knowing the various factors that affect a car’s resale value to help you calculate the price of your car. Let us first talk about the aspects that affect the resale value of a car.
Factors Affecting Resale Value of Car
A car’s make, model, mileage and standard equipment are the biggest factors in determining its price. Let’s talk about a few in brief.
- Model year: A car’s model year matters a lot. Recent models are generally more in demand, hence claim better prices than the older versions. For instance, a 2018 Toyota Corolla is more likely to fetch a higher price than a 2008 Toyota Corolla, as it retains high-tech convenience and safety features in comparison to the latter. However, the rule changes for classic cars as their worth is determined by their age. The older they get the more value they possess. Last year, the 1962 Ferrari GTO 250 coupe was sold for a jaw-dropping $48.4 million at an RM Sotheby’s Auction. Unbelievable, isn’t it!
- Car Mileage: The mileage of the car is another factor, which can make or break the deal. No matter how well maintained and new-looking your car is, if it displays 2,00,000 km on the odometer, not many buyers will be enticed to buy it, and even if they do you may not sell it at the price you were expecting. Suppose, if we compare two Suzuki Alto cars with the same model year having the same features, the one with a low mileage reading on the odometer will sell at a higher price. We generally assume that a car with higher mileage will require more repairs in the future.
- External and Internal Condition: It goes without saying how critical the exterior and interior of the car is in evaluating its true condition and setting a price accordingly. The noticeable dents, peeling paint, scratches, and bruises are all indicators that the car has suffered some amount of damage in the past. Whether it was a minor collision or a major accident, it would be less likely to garner high resale value. Therefore, it is only obvious that you need to get the car a special wash, fix or repair any damages and get a paint job done to convince potential buyers into paying a good amount for its upkeep. The car’s interior is just as significant and may require thorough vacuuming, new floor mats, and better seat covers to increase its overall appeal.
- Standard Equipment: The features, which determine the price of your car, include engine, drivetrain, comfort and convenience, safety and security, entertainment and instrumentation, wheels and tires, and accessory packages.
Research is the Key:
Once you have determined the aspects I have mentioned above, you should also explore local markets or visit online automotive portals to make a good guess of your used or new car price. It is usual to find fluctuating prices for the same model within the local markets owing to the factors we have discussed above. Acquire car prices on Yahoo Autos, Auto Trader, KBB, Edmunds, etc. in America and Pakwheels in Pakistan, to get the first-hand knowledge and then compare these to the prices you got from local dealers. Another alternative is to look through classifieds and find the cars similar to yours and compare their prices to the ones you acquired online. Remember, there is always room for negotiation, so sellers mostly list a price higher than their car’s current market value. You must also do the same when you sell your car online.
Setting the Final Price
Now that you have finally obtained information from various sources, it is time to identify the possible price ranges. Once you determine the range, the next question is whether you should opt for the higher, middle or lower range. It is advisable to start somewhere in the middle and then add or deduct in your estimates based on the features mentioned above. For instance, if your car is exceptionally well maintained or has comparatively low mileage, you can add a figure to the price. Moreover, if you have followed scheduled maintenance that has added years to the car’s life, you are in a good position to quote a slightly higher car price. On the other hand, if your car has sustained heavy damages and you are not willing to get any maintenance done, then you may have to charge a price less than the middle range. Besides, do not forget to leave some room for negotiations with prospective buyers.
By following these simple tips, you can estimate the price of your car and would be able to sell it quickly if you are realistic in this approach.