How to Determine the Value of your Car
With the day-to-day running of any vehicle, the value of the car may not be important. However, if you are considering selling, upgrading, or reshuffling your finances, the value of your vehicle will become important. Your car is usually the second largest purchase you'll make in a lifetime and like any asset, it is important to know what the value is. If you undervalue your car, then you could possibly miss out financially, while overvaluing your vehicle could make it more difficult to sell. Here is our guide on how to value your car.
What is Depreciation?
Depreciation is the loss of value of your car over time from when you first purchased it. Depreciation starts from the moment you buy a new vehicle and the 1st year you own it. For this reason, people will prefer to purchase a nearly new car, approx. 1 year old with very low miles compared to a brand new one with no miles. The cost difference could be thousands; however, the vehicle is as good as new.
Market Research
To determine the value of your car you must consider the local market. The internet is your ideal place to start researching your local market. With all the different age and models of cars available to check online, there is plenty to make comparisons with. Some cars listed online are from dealers and may have their value adjusted according to the condition of the car as well as the packages that it may come with. The estimates will not always be accurate. Check out the most popular car valuation websites in Ireland such as Car Zone, Done Deal, Motor Check, Car Buyers Guide, Airton, and many more. Your location can also make the valuation different, so it is worth checking the market.
Place the vehicle in an Auction
The internet and online auctions are a great place to start and test out the true supply and demand of the market. You could place your vehicle up for auction, this will give you a good indication of what people are willing to pay for your car rather than the price charged by a dealer. Not having the worry about the cost of guesswork or haggling makes this a pretty simple way to find an accurate valuation of your vehicle.
Classifieds
It's a time-consuming and is an old-school method, however, by spending a small amount of time browsing through the classified ads, you could probably find someone selling the same model and the same year as your own car. A classified advertisement in a newspaper or magazine provides you with both the condition and mileage of the vehicle and gives you a basic idea of the valuation price. This method should only be used as a rough guide as many people are selling their cars for multiple reasons which can affect the price dramatically.
Assess the vehicle's Condition
A common method for finding out the valuation of your car is assessing the condition of your car. There will be a significant price difference between a car in fair condition and one in excellent condition. Vehicles in the worst condition will sit in the lower price range whereas vehicles in great condition will command the highest price. The auto industry uses specific words to distinguish the condition of a car. These include fair, good, very good, and excellent. Always be honest about the condition of your car as it's the best way to get the right price. If you price the car too high, then you will struggle to sell it. Here are some of the main factors affecting the vehicle condition and valuation:
- Mileage
Mileage can have a huge effect on your vehicle's worth. It pretty much sums up whether the car is worth buying or not. If the car has a lot of miles, it will sell for less, regardless of how old the car is. The more miles on a vehicle, the more it depreciates in value.
- Condition
The overall condition of the car is a huge factor in determining the value. Dents, scratches, repainting, and rough interior will make the car less appealing to a buyer. It is important to keep your vehicle in perfect working order to prevent a low valuation price.
- Service History
Servicing your car regularly will increase the value of a car. A service record and history of regular maintenance will enable a buyer to pay a good price. It is common for a buyer to pay more for a car that performs better on the road. Vehicles with a clean accident history and regular service usually get the higher end of asking prices.
