9 Ways to Consider Finding the Value of Your Car

Now that you have had your current car for a while, you may be looking to upgrade the vehicle. The process will start by selling your current car at a suitable resale value.

But how do you figure out a reasonable resale value for your car? You can’t just come up with a number out of the blue and sell it. Several factors weigh in when deciding the resale value of a used car. Keep reading to find out what factors to consider when evaluating the worth of your car.

All cars have a depreciation value, and they start losing their sticker price as soon as you buy them. So, you won’t be able to sell the car at the price you bought it for. As the years keep passing by, the car will keep losing more value. The value of a car after 2 years will be different if you sell it after 5 years.

Time is an important factor in setting the price of your car, but there are several more points to consider. Read on and take notes.

1. Depreciation of the Car

Not all cars depreciate at the same rate. Some vehicles will hold more value after 5 years than others. The brand of the car affects depreciation. A car from a notable brand and of a better mode will hold value over time than a less popular brand and model.

New cars depreciate at a faster rate than older cars. If your vehicle is still within its warranty period, it will hold more value. Moreover, the accident history of the car will also affect depreciation.

So, take note of all the points that could affect the depreciation of the car.

2. Market Demand of the Vehicle

Market demand is simply the price of your car in an open market. Look for other cars with similar specifications and see what they are going for. Cars of the same model usually go for equal prices depending on the condition of the car.

According to Number1Plates, "Market values are still the best place to start with your used car because they give you a baseline: the money that you could possibly get.”

If your vehicle is not getting a high bid in the open market, it might not be worth it to sell. Most of the time, a car would go for an equivalent value of what was being offered in the market. It can be a bit higher sometimes or a little lower, but market value is a good guess for the value of your car.

3. Condition of the Interior and Exterior

The condition of the interior and exterior of the car will have a huge impact on the value of your car. Before listing your car out for sale, it would be a good idea to invest in cleaning it a little. Make sure there are no bad odors inside; buy new floor mats, clean the windows and the internal body with a car solution. Leather seats could be polished to look shinier.

These little things about the appearance of your car help determine the value of your vehicle. A car in better condition that doesn’t require much polishing will go for higher prices than a dented car with scratches all over and a messed-up interior.

Another important thing about the interior and exterior is the features. If your car has a neutral interior like brown or gray, it will have a better resale value than a bright-colored interior like red or yellow. Also, usual colors like metallic gray, blue, silver, and black will go for a higher price than non-typical ones like purple or gold.

4. Mileage

If you want to preserve your car’s resale value, drive it less. The more miles the car has traveled, the less value your car will get in the market. A car with higher mileage will sell for a far less price than one with lower mileage, even if the vehicle with higher mileage is in top condition. More mileage translates to increased chances of wear and tear for the car, and so the value decreases.

5. Seller of the Car

The place where you bought your car will have an impact on the resale value of the car. If you bought the vehicle from a private seller, it will have a lower value than if you bought the car from a dealership. This is because private sellers are more doubtful as they don’t have to meet state regulations as car dealers do. So, a dealership car is more trustworthy. A buyer would want to know where you got the car from, and a dealership background will be more valuable.

6. Venue of the Sale

While a car bought from a dealership will be listed for a higher price, if you sell to a dealership, you will probably get a lower price than selling to a private buyer. The venue of the sale matters. Dealers would pay less for a used car than another normal individual. However, there is the advantage of selling your old car and buying your new one simultaneously in just one day if you sell to a dealer.

So, the sales venue or the buyer of the car is an important factor in determining the value of your car.

7. Personalized Cars Have Lower Value

If you have done some modifications to the car to suit your style, it can hurt the resale value of the vehicle. The personalizations in the car could include printed seat covers, window tints, hood covers, stereo speakers, or anything out of the ordinary. Some modifications might be in demand for your car’s brand in the market, but a buyer may still be doubtful about it because of insurance trouble.

Most insurance providers will not want to insure a car that has been modified even slightly. Losing the changes can lead to a better value.

8. Mechanical Condition

External maintenance alone is not enough. You must also make sure to take care of the internal condition of the car. The internal condition includes the mechanical parts of the vehicle. If there is some wear and tear which requires fixing once the buyer purchases the car, the value of the vehicle will go down by an equivalent sum.

However, most buyers don’t get a thorough examination of the mechanics of the car before buying, so you might not be able to put your finger on the exact amount needed for mechanical revamping. Keep records of service sessions and other big alterations in the mechanics of the car. They play a part in setting the value of your car.

9. Transmission type

Manual transmission types are known to be more fuel-efficient, but they go for a lower value than automatic transmission types. However, a manual transmission type may be more valuable for the area you live in and might sell for a higher price in that place. So, transmission type and the demand in the area are significant considerations to know the worth of your car.

Conclusion

Understanding the resale value of your car is highly important, so you wouldn’t sell it for a lower price than you could actually get. The sale price of the car should ideally cover at least part of the cost of a new car. If it doesn’t cover any cost, the old car may not be worth selling.

Take help from the points above in knowing the true value of the vehicle. Just keep a close tab on all repairs, use your car wisely, and don’t drive too fast, and you will be able to sell your car for a good price.