There are many reasons why a car is given a particular valuation, and understanding why this is the case is incredibly useful information. Whether you’re looking to buy or sell a car, knowing these will stand you in much better stead to negotiate sale or part-exchange values.
In this blog, we explore the factors that help to determine the value of a car, which makes your buying or selling process as simple as possible.
1. Age of the vehicle
Older cars will generally sell for a lower amount because of their propensity to more wear and tear issues. Buyers are not keen to embrace the prospect of shelling out more money on maintenance costs that they’ll have less of in a newer model.
Newer cars tend to be in better condition, having often covered fewer miles, and come with more updated features that improve driver’s comfort, convenience and safety, which is much more desirable for prospective buyers. Read more about this in our blog post ‘Five features that can increase the value of your car’!
2. Supply and demand
It seems like a simple notion, but if a car model isn’t in demand, it won’t sell. And as it gets older, its value will depreciate even further, whereas a newer, high-demand vehicle will fetch a much higher price. Furthermore, if there is a limited number of the same specific make/model currently in the market, then this limited supply can also help to drive a higher price.
However, factors such as warranty plans can play a role in obtaining a better price for your vehicle. This is because they show prospective buyers and sellers that the vehicle has received good maintenance and is less likely to need costly repairs in the immediate future.
3. Make and model reputation
A brand model’s reputation, popularity and desirability have a huge impact on the value of a car. Brands with a proven legacy of being reliable often maintain a high level of demand and thus a higher sale price.
Additionally, if a car make isn’t very fuel efficient or has higher fuel emissions, it also fetches a lower price due to increased road tax and non-compliance with emission standards for cleaner air. This can make it expensive for buyers to commute into cities with clean air zones and congestion charges.
4. Mileage
Cars with higher mileage can be more challenging to sell because of the likelihood of incurring more wear and tear, resulting in more money being spent on repairs.
Mileage is also a strong indicator of the car’s remaining life span, and the higher this is, the less likely it will get a good sales price. Buyers are far more likely to want to purchase a vehicle that they’re going to get lots of use out of!
5. Vehicle condition
A car needs to both run well and look good in order to impress prospective buyers. If you’re looking to sell your car, it’s important to get rid of any scratches and bumps and to fix any wear and mechanical problems to make sure it’s in good condition and to get the best price.
When it comes to the appearance of a vehicle, another determining factor is its colour. Darker coloured cars tend to be in lower demand because they show scratch marks more than white or silver vehicles, thus decreasing their demand.
Here at Hendy Buy Any Car, we want our customers to be fully informed about every aspect of buying and selling their vehicles. We’re on hand to provide services and reliable sources to best advise you about the condition of your car and help you get a better idea of its value.
A good place to start when understanding the car market is using a valuation tool, which gives you an idea of the current market value of your car’s make and model. Here at Hendy, we have our own free valuation tool [hyperlink], which uses real-time data to give you a reliable quote as a starting point in the buying and selling process of your vehicle.
Our team provides professional and current car valuations, yet the final figure may vary due to specific factors unique to your vehicle. We encourage you to schedule a no-obligation appointment at any of our South Coast dealerships to receive the best sales advice and service for your car.
Seize control of your car’s value today with Hendy Buy Any Car!