What Factors Affect the Value of Your Car?

May 19, 2021

If you have had your car for a few years and are wondering how much it is worth and what you should sell it for, then you need to know the factors that will determine the value.

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Here are the top 4 factors that will determine the value of your car.

Depreciation

Depreciation is a major factor that will affect the value of your car. Depreciation is the rate at which a vehicle loses value over time. Different car brands will have different depreciation rates, which is based on the brand, demand, history, age, appeal etc.

You will then need to take the depreciation for your particular vehicle into consideration when it comes to placing a value on your car.

Market Demand 

If you own a car that is in high demand then it will most likely fetch a higher price or a more competitive price in the used car market. It is a good idea to do some research and see what your car is fetching on the used car market. Try and find a close comparable that is similar in age and mileage. This will give you an idea of what your car will be worth.

The Condition

The value of your car will be determined by the mileage and the physical condition. Cars with a higher mileage usually sell for a lower price. However, if you have taken care of the vehicle, kept on top of services etc then you could ask for a higher price.

A car that has been poorly maintained and has several condition issues will have a lower resale price.

Keeping your car clean and in good condition is the best way to ensure it retains value over the years. Your vehicle needs to appeal to buyers, so doing what you can to keep its appearance and mechanical condition in good order will appeal.

The Details 

The value of your car will be influenced by its colour, upholstery and general interior trim. Neutral colours generally sell better than vibrant colours.  Also, additional add-ons or customised extras, even though you love them, may harm the value as not everyone is going to love them like you do, especially if they are permanent alterations.

Keeping your car in good condition, keeping on top of services and ensuring that you have done everything you can to keep your car in good order will help with the resale of your vehicle.

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