Like many other assets during resale, vehicles’ resale value too is subject to numerous factors that determine the end deal figure. In broad range, make of the car, year of manufacture and model will determine the vehicle cost range it will attract. Other factors can minimize this range and bring out certain prices. Such factors are among the actual condition of the car, color, and service history. It is seemingly unfair that as soon as one drives off from a car dealership, the car is worth less money than what one has just parted with, in fact, a lot less. This is the sad reality of depreciation. Nevertheless, subsequently discussed are ways of determining this loss of value.
Valuation company assessments
Companies like Parker are known to be very reputable as well as very accurate while making these assessments. Data used for evaluation is acquired from dealerships and other sale avenues monitoring. These data companies consistently supply dealerships with pricing guides. Therefore, their business is dependent on their reputation and accuracy is then their primary concern. These companies offer information for free or at times charge a small amount. Even so, there are a few factors that one can look at to estimate the value of a car. They include;
Condition of the car
Condition is a very obvious factor in determining the value of anything. The extents of wear and tear on the car as well as damages and previous repairs significantly influence the value. The nature of damage can have a diverse impact on the value of the car based on factors such as model and make of the car.
An accurate and full review of a car will fetch a higher value than those without. Service history has assurance effects on a potential buyer in regards to the maintenance of the subject car. It is advisable to have all receipts of professional servicing safe in case they may be needed if future.
Most buyers will go for unmodified vehicles. Hence, modified ones are more likely to fetch lower prices during resale. In other cases, some changes may raise the value of the automobile. This is mostly impacted by the make of the car. Insurance implications after modifications scare away most buyers from modified cars. There, however, are special cases where this may not be a big deal.
Good brand reputations earn higher resale values than those without. Brand reputation is influenced by factors such as low maintenance requirements and easy handling to their cars. Toyotas and Hondas have a great brand reputation and are easy to maintain, with high value too.