New cars always come with a price determined by their official ex-showroom price and the applicable local taxes. In a blog of Statista, they claim “The pre-owned car market had a size of over 4.2 million units across India in fiscal year 2020”. The situation is different in the used car segment – the market is still very disorganized, which makes it difficult and annoying to estimate the resale value of your vehicle. Different buyers will quote you different prices. So how do you determine how much your car is worth? Check out this guide for how to find the right car resale value.
How to find the used car value?
Many factors determine the price of a used car in the market. Most importantly, the demand and supply of used cars. Your car will easily sell for a higher selling price if it is listed among popular cars with high resale values. Having said that, also consider other factors like lean times (end of the year) or unforeseen situations (Demonetization). The market may be temporarily slowed because of factors like these.
Check used car price online
There are several tools available online which can give you an estimate of what’s the value of your used car. Many of the tools are just useless but on the other hand, few are usable and give you an idea of how your car stands in the market. Tools like OBV, also known as Orange Book Value which help you to check used car price.
Factors on which your used car value depends:
Current Market Price
There are a number of manufacturers, such as Mahindra, Ford, etc. that have used car businesses that resell the cars that you trade in. Used cars are then sold to car buyers looking for used options, where the manufacturer earns a small profit.
It’s important to know that one of the major elements affecting your car’s valuation is how many miles it has covered. Also, the average life of a petrol engine is 2 lakh kilometers, but a well-maintained diesel engine can last twice as long. In addition, since you are paying more for the diesel, it should have a higher resale value.
The condition of a car greatly impacts its valuation. The condition of a car is usually rated from fair to excellent. Those who buy visually appealing cars can expect a good value; a vehicle with minimal exterior modifications will hold its value better. Furthermore, it provides a sense of how well the car was maintained and driven. Another factor that adds value to a car is a clean engine and interior. A potential buyer or evaluator would notice this.
Car Make and Variant
Since Ford left India, the resale value of ford vehicles dropped down drastically. Such kind of market decisions do have a lot of effect on the used car value. Nevertheless, you should also know that only the right kind of buyers can offer good prices for cars that are not revered for their good sales performance or their association with a particular brand and are therefore considered to be riskier to buy as a first car.
Ques. How do I find out the market value of my car?
Ans. You can get a quote from dealers, or you can check out an online valuation tool for finding the most accurate price of your car.
Ques. What is the sweet spot for buying a used car?
Ans. Usually whenever a car covers out 25000 km/s or 3 years it is considered to give you the best resale value.
Ques. What is the best age to buy a second-hand car?
Ans. Around the 5-year mark is the best time to buy a used car, as this minimizes depreciation and maximizes reliability for the price you’ll pay.