Knowing the value of your car is important for a number of reasons such as trading your car for one more vehicle, selling the car at the best price, or claiming compensation from your vehicle’s insurance company. This estimate helps owners understand the value of their vehicle and helps complete the final deal with satisfaction. Today we’re going to share with you important information to help you know the differing types of vehicle car values and help in making the right choice.
Residual value
Vehicles will lose their monetary value over time mainly because of use and availability of new car models with improved features. Depreciation or resale value is the expected amount your car can be sold for after purchase. On average, the resale value drops between 40 and 50 percent of the car’s price. Apart from the use of the vehicle, the build quality of the car directly affects its resale value. For example, a vehicle made with premium quality materials will have a good resale value, whereas a vehicle made cheaply with average materials will have a poor resale value. If you choose a comparatively cheaper car, remember that the residual value is around 20 to 30 percent, leaving you with a loss. Today, you can easily find many vehicle value calculators that you can use to find out depreciation
Know the Terminology
It is all the time better if you understand precisely the terms used when buying or selling a car. Having complete knowledge of the condition of your vehicle and industry-specific expressions related to car values will absolutely help you make a better decision. Here are some that are important for you to get through.
- Retail value is the amount the dealer will charge you to buy a refurbished used car.
- The private party value is the amount the car owner is willing to sell to someone else. This trade between two private individuals eliminates the need for a car dealership, eventually saving on markups or service fees. Unless you’re a car enthusiast and know everything about vehicles, buying or selling a vehicle privately can be disastrous. Seattle is a growing city with many new drivers added every day. Almost every car expert included this dealer in Seattle proposed that inspection from a professional is important if you plan to buy or sell a vehicle privately. This will make sure that the car you buy or sell is safe to drive and whether or not it needs repairs.
- The trade-in value is determined by the dealer after the vehicle inspection is complete and varies depending on the condition of the car.
Gather information
It is important to gather relevant information about your vehicle before thinking about selling it. Try to find out events since the acquisition of the car that could have resulted in its depreciation. It can be an accident or major fault on a machine part which ends in the replacement of the part. Here is some relevant information you need to gather before selling.
- Vehicle features are increasing day by day. Whenever a newer vehicle model is launched, it overtakes the older model in vehicle features and act as a key selling point for the automotive industry.
- The number of miles traveled by a vehicle can easily affect its value. A truck or SUV with more mileage will have a lower value when compared to a vehicle with less mileage.
- Checking the current condition such as body, paint and engine is also necessary for a better evaluation. Furthermore, remember about the interior and try to repair or replace small parts so that you can get a better value.
- The color of the vehicle can even affect its value. Depending on the current trend, there are some vibrant colours like green and orange which have more value compared to the traditional colours. Common colours like blue, black, and white are generally less desirable.
Value Estimator
You can find many vehicle value calculators that can offer you a rough idea of what your car is worth. This estimator collects the relevant information mentioned above and provides you with an estimate, depending on the market. There may be differences in these service estimates as each uses its own comparison tool. Still, do your homework and try at least a few appraisers before you go see the car dealer. Also, you can try to find out whether the model or brand of your car is in demand or not. If you are lucky enough or add aftershock components it can be a major selling point and increase the value of the vehicle.
It is all the time advisable to give the right time and try to estimate the value of the car so that you’re contented and have a clear understanding of your decision. We hope the information shared above has given you a good idea of what your car is worth.
