The used car market in India is growing at a rapid pace and is expected to surpass the annual new car sales this year itself. The current market trend suggests that for every new car sold, there's a used car sold in India, meaning more than 2.5 million used cars change hands every year in India. Such increased magnitude of buying and selling of used cars leads to an increased competition, resulting in less value of your car if you are out in the market to sell it. Or is it so?
While the growing interest of buyers in used cars has opened up an opportunity for the sellers to get a quick deal, it also means that the chances to sell your car at a good price reduces substantially, since the buyer will have more sellers to cater his demand. In such conditions, one need to follow few steps and learn how to get the best deal for the car they are selling.
Here's how to get the best deal for selling your car!
Know the value of your car
Before setting a foot out in the market, and getting duped by dealers or buyers, it is advised to know the worth of your car beforehand. There are many online portals who offer such service for free - all you need to do is feed them with a couple of details like the vehicle's make, model, year and distance on Odometre. Knowing the approximate value of your car will help you negotiate better and save a lot of efforts asking various sources for the best prices.
As a general rule of thumb, a car's value depreciates by 10% annually once you purchase it. The current value of the car can be calculated by subtracting the percentage from the current ex-showroom price. Take for example a car purchased 4 years ago and has an ex-showroom price of Rs 100000. The current value will be Rs 100000 - 4*10% = Rs 60000. You can take a margin of 5% as a range depending on the condition of the car, plus your negotiation skills. So the actual value of this car will hover somewhere between Rs 55000- Rs 65000.
List your car online
Selling your used car through an offline mode will cost you a commission, meaning you will lose money for selling your own car. Reason being, any intermediary between you and the buyer, will charge a fee or commission from you. On the contrary, many web based portals are offering this service for free of cost, without charging you any fees or commission. You can also sell your car to a known person, like a friend or relative, who will give you good money for your car.
Nobody wants to buy a car with 1 lakh+ kilometres on the Odo, until and unless it's a commercial vehicle. It's better to keep your kilometres in check and avoid unnecessary travelling. Use public transport, if you can, or avail a car pool service. However, if you can't avoid long runs in your car, don't hold the car for too long. 5 years should be an ideal duration of ownership of a car.
Buy a popular Color
Believe it or not, India is white-colored obsessed country, and no, we are not talking about foreigners. We are talking about white color cars, which accounts for more than 50% of sale in India. You know one can't go wrong with a white color car and hence they attract more number of buyers. If white is not your color, play safe with either Silver, Grey or Blue shade. Too bright shades like Yellow, Green or Red will attract a less number of buyers.
Get your car fixed
Before you head out to sell your car, always have a detailed check of your car. Look out for damages, and other issues. Engine is the most important part of any car and more than the looks itself, you have to get your engine fixed. Visit a garage for a detailed service to get rid of small niggles and ask the mechanic to check the engine thoroughly. If there is some denting and painting issue, get it sorted before selling because as they say - a good first impression is half the work done.