Used car valuation is a topic of considerable debate in recent times. With the mushrooming of multiple car valuation tools these days, there is a lot of thought going into the factors that actually constitute second hand car valuation online. Car valuation online is a very easy process for interested buyers or sellers in recent times. All you need to is provide some relevant information online and you will get an accurate estimation of the value of your car within minutes.
However, there are several factors influencing second hand car valuation as we know it. Those looking to sell their old car or buy a used car should always know how to accurately estimate a car’s value. The process of valuation remains quite similar although a few aspects may differ. The valuation of cars depends on several factors although there is no exact scientific method used to ascertain the same.
Here are 8 of these factors that you should be aware of when it comes to used car valuation in 2018:
- Car Condition- The look and feel of a car helps in creating the vital first impression. The condition of the car is very important when it comes to determining valuation. The value of your car may come down in case of any dents or scratches or any interior damage. A car in good condition usually has thorough records of maintenance, has passed all regulatory inspections and does not have any big mechanical issues. Regular wear and tear is quite common for any car. However, the condition of the gears, engine, brakes and clutch is important while ascertaining the value of a car along with the steering ease and tyre tread. The car should not have any unnecessary noise or vibrations as well.
- Kilometres Driven- The number of kilometres that a car has covered will be inversely proportional to the car’s value. The higher this figure, the lower the valuation of the car. The car can be driven for a particular number of kilometres before it starts giving you trouble. Most people drive 10-15, 000 kilometres annually in large metro cities. Most people attempt to sell off their cars prior to touching the 1 lakh kilometer mark. Surpassing this figure means extremely low resale value.
- Purchasing Year- The year in which the car has been purchased is also highly important. In case your car is older than 10 years overall, this will majorly affect its pricing. In some cases, a particular model may be phased out or discontinued by the car company in question. This may make it tougher to find spare parts. The value of these models may thus be lower than that of cars which are still being produced. In many cases, cars that are older than 15 years are majorly sold for scrap value.
- Service Record- The service history of a car speaks volumes about its current condition and quality. Several owners always ensure timely and periodic check-ups for their cars even if they are in proper condition. In case there is regular maintenance and servicing of cars, it will definitely be in better condition. Some owners may have private garages servicing their cars instead of authorized service centres from companies. The service history should be informative, detailing changes of spare parts. Cars which have genuine replacement parts will always have higher value as compared to those with parts which are not manufactured by the company. Periodic replacement of engine oil and other basic things will also keep a car’s value on the higher side.
- Accident History- Cars which are damaged have lower value than their counterparts. This is also the same for cars which have been fully repaired after any accident. In case there are just cosmetic damages, the car’s resale value will not be impacted as much. However, if a car has a total collision, its resale value will be less since buyers will continue having anxieties about any secondary issues that may emerge from the vehicle. In case the car has already got some major mechanical or structural damages, the valuation may go down considerably. Prospective buyers prefer looking at the insurance claim history of any vehicle to get an idea of these things.
- Make & Model- The make and model of the vehicle also influences its resale value to a large extent. Some car brands and models have higher resale value than others on account of their tried and tested reliability in the market.
- Location- The location of the vehicle is also a major factor determining the resale value. Some vehicles have higher values in specific locations. Also, the demand varies for used cars depending on the location in question.
- Number of Owners- The number of owners may influence the resale value of the car. First-owner cars tend to have higher valuations as compared to second or third owner cars.
These are 8 things that you should always know about used car valuation in 2018.