Cars in India | Autoportal.com
Select City

Valuation of Used Cars: How You Can Do It Best

Snapshot: Correct pricing of a used car is the key to getting a quick sale. Here are some points that one should keep in mind while valuing a used car.

Valuation of pre-owned cars is a matter of both subjective (appearance and condition) and objective (make, model and year) analysis. Since each used car is unique in itself, therefore, all used cars need to be valued individually to establish their price. But there are some points that one should keep in mind while establishing a value of a used car. 

The objective factors

The prospective buyer will definitely want to know how old the car is. Therefore, during valuation, the model year of the vehicle, the trim level, and the optional items and packages along with the mileage that is currently offered by the car should be considered. The trim level / variant of the car makes a lot of difference in the car's valuation price. What goes without saying is that, higher the variant, better would be the price.  

Local price level 

It is very important to check the cost of similar cars in the local market before valuing your own used car. It will prevent you from overpricing or under pricing your car. You can search for a car that is similar to your vehicle and the price that it is fetching in the market. This will give you a very good idea about pricing your car correctly. It's a good idea to visit your local dealer and enquire as a customer about the price of the car that you are willing to sell. It should help negotiate the selling price since dealer would be letting you know the price after accounting for this own benefit. 

Taking help in valuation through the internet 

There are a number of online tools that can help in valuing a used car. Those interested just have to fill a simple form where they are asked about the year the car was purchased, the model number, the variant, your name and your mobile number, etc. This helps in valuing your car correctly and to avoid over or under pricing. You can get the car valuation done here and take assistance of the online platform for selling your car and get the best price.

Kilometres covered 

A very direct means of valuing a used car is the number of kilometres it has already done. It provides a good estimate of the engine's life and overall life in general. A car that has more mileage on the odometer would naturally means that it is not in a great condition and may require more maintainance than the car that has less miles on the odometer, and would therefore have a low value comparatively. On the other hand, car which has just a few kilometres will appeal to the buyers as they will consider it to be new.

Condition of the car 

One thing that negates the earlier point of kilometres covered as well as the trim level, is the condition of the car. If the car looks beautiful, is scratch free and sparkling and performs well it is sure to fetch a higher price irrespective of the number of years that it has been previously owned. A shabby and scratched car will naturally be valued at a much lower rate. Also, car's higher variant does not guarantee a better price. If most of the equipment that the higher variant offered is not working, the valuation price would be substantially less despite the variant.

Upgrades 

If the car has been kept in excellent condition and boasts of the latest upgrades like stereo system, custom paint or aftermarket accessories then the vehicle should be priced accordingly. An outdated car on the other hand which has no latest upgrades will naturally command a lesser price. The converse is also true, purists may like the car that's close to original and may not appreciate car modifications and would likely give a less value for that. However, someone may find the modifications to be in good taste and may offer even better value.

Trade-in 

When you give your car to a dealer for sale, the dealer gives a value to your car. This trade-in value given by the dealer is generally 20% lower than private party values. You can offer your car to a dealer for sale in exchange for cash or a down payment on another vehicle in case you want to save yourself from the hassles of selling it yourself. This is advisable only if you want to purchase the car immediately and don't have the downpayment amount. In today's day and age, you can sell the car much easily online and get great deals. 
 
Keeping all the above mentioned points in mind while valuing your car will definitely help you in the correct and most ideal valuation.

Are you looking to buy/sell a used car? Have a look at the latest pre-owned cars here.

Related car news

  • How to sell your car for the maximum price 20-06-2014 How to sell your car for the maximum price
  • Buy new or old, Droom has your back 06-10-2016 Autoportal Team Buy new or old, Droom has your back
  • Impact of GST on Indian car market 16-06-2016 Pankaj Vig Impact of GST on Indian car market
  • 10 things to check before buying a used car 27-05-2016 Pankaj Vig 10 things to check before buying a used car
  • 10 Features your used car must have 27-05-2016 Autoportal Team 10 Features your used car must have
  • Buying Guide - How to buy a used car in India? 16-10-2014 Autoportal Team Buying Guide - How to buy a used car in India?


Helpline