Used Car Valuation

Factors Affecting Used Car Prices

As mentioned above, certain factors affect the value of a used car. These include:

• Depreciation of the car: The value of a car depreciates after each passing year which in turn affects the market price of the car. For instance, if a car depreciates by 10% in a year, its resale value in the market will also reduce based on this percentage.
• Make and model of the car: Some car make and models have a higher resale value than others. For instance, a sedan like Honda will have a higher value than a Maruti car. Thus, before doing an old car valuation, the make and model of a car are also taken into account.
• Total Kilometres Driven: The kilometres driven by a car would automatically reduce its valuation in the market. Thus, the more the number of kilometres driven by the car less would be its resale value and vice versa.
• Overall Condition: A car's overall condition at the time of resale is also taken into consideration. A car with paints, scratches or reduced mileage will reap a lesser resale value than a car that's new and does not have any dents or scratches. Thus, a car having good overall condition will cost you higher.
• Registration Year: The age of a car also determines its resale value. If the car was registered recently, it will have a higher car resale value than a car that was registered years back.