“How do i value my car?” is a question we’re frequently asked, and getting it right is a worry for thousands of motorists. The moment you’re confronted by a dealer’s offer for your trade-in, or when you’re thinking about advertising your car privately, it’s vital you understand how much your car is really worth. The same goes for buying a used car, of course, as nobody wants to pay more than they need to.
So if you’re one of those drivers asking “how much is my car worth?” you need to know where to look, and what factors influence your final car valuation.
How much is my car worth?
If you’ve bought a new car and now is the time to sell, you’ll be expecting to take a hit on its value. As a rough guide, mainstream production cars lose around 60 per cent of their new price over three years with average mileage.
It’s not that simple of course, because some cars do better than others, and it’s important for owners to have a grasp of the factors that affect their own car’s value.
What factors affect your used car valuation most?
Most cars lose the bulk of their value in the first three to five years, and after eight years many cars are unlikely to depreciate further. But the make of your car can easily determine how much the years devalue your vehicle.
Usually, premium makes tend to retain their value better than budget brands.
Age and make are factors drivers will be unable to change after purchasing a vehicle, but where every motorist can make the difference is how much and how carefully they drive their car. Mileage on a car is what most buyers look for, and keeping it low will go a long way to ensuring a higher sale price.
Condition is more subjective than mileage — someone selling a reliable, accident-free car with paint scratches and surface rust might describe it as “excellent,” whereas most buyers might call it good to average — but it’s as important as mileage in assessing value. Although condition is closely associated with mileage, the two are not directly correlated.
Even a vehicle with low mileage can sustain more than its fair share of wear and tear, which negatively impacts the value. Vehicles with torn leather seats, electronic equipment that doesn’t work, scratches or dents, or other similar issues will not be highly sought after and thus will see a negative impact to their value.
Aftermarket options — such as oversized wheels, stereo speakers, or rear spoilers, rarely add value, and can actually lower it. With aftermarket modifications, buyers don’t know how well the work was done.
One final consideration: exterior color. It doesn’t have a huge impact on pricing, but more common colors — blue, metallic grays and silver — sell faster than more adventurous colors like brown, orange or purple.
Servicing aside, a clean and well maintained car will always sell for a better price than a scruffy example – remember this the next time you’re attempting an ambitious parallel park. While it may be a pain in the neck to have work done, calculate carefully whether the cost of repairing that scuffed alloy, panel ding or cracked light lens will repay you at resale time – an immaculately presented car is usually a magnet to buyers.
