The Importance of Car Valuation Explained
Cars, just like technological devices, depreciate in value at a rather rapid pace. Each year, several new models are being released into the market. The more new models are released, the faster the rate at which a car value drops. If you are planning to make cash out of selling your old cars, it is therefore important to know the importance of car valuation. There are several online tools you can use to calculate the market value of your car. You can also let a car specialist inspect your vehicle so they can give you an honest assessment of your car’s value. Either way, it is important to closely monitor car valuation before you put it out in the market.
Introduction to Car Depreciation
Depreciation refers to the difference in the car’s value when you bought and its value by the time you decide to sell it. Depending on how old your car is, this difference can be quite expansive! In fact, some vehicle owners might be lucky enough to be able to sell their vehicles at half the price they bought them for!
There are various factors that come into play that could cause the car’s value to drop. On average, a car’s value drops by 15 to 35% per year. When it reaches the three-year threshold, the car would have depreciated by 50%.
Therefore, you should make it a priority to choose a car that is able to retain its value. That way, you can still make some money by the time you decide to sell it.
Maintaining the Car’s Value
In order to slow down the depreciation process of your car, you can thankfully do some measures to maintain its value. It does not matter what your vehicle model is, knowing how to give proper care to your vehicle and slow down its depreciation.
Take note of these tips to maintain your car’s value:
- Give attention to both the exterior and interior components of your vehicle. Both of these combine to creating a huge impact on the car’s market value. Primarily, you should regularly clean the interior and exterior of the vehicle to avoid damage. You can try to update the seat covers so you can preserve the quality of the seats. Small changes or updates can make a huge difference.
- Always park in the designated areas. Parking is one of the most basic tasks involved when driving a vehicle. However, you should observe proper parking techniques and safety procedure. When parking in an outdoor area, choose to park in the shade as regular sun exposure can cause damage to the exterior.
- Take your vehicle to an auto mechanic on a regular basis. Do not wait until your car experiences mechanical fault before you do. Prevention is better than cure. Hence, your investment in auto maintenance can go a long way in maintaining its value.
Car Valuation Tools
As mentioned above, there are websites offering free car valuation tools. With this tool, you can get a ball-park figure of your vehicle’s market cost. These tools take the model, make, brand, mileage and other basic information about your vehicle into account.
When you know the market value of your car, you will be able to confidently negotiate its sale price. Armed with a valuation estimate of your car, you can then negotiate the price so you can earn the highest profit possible.