Used Car Valuation
A used car valuation refers to the process of ascertaining the right resale value of a second-hand car based on various factors like depreciation, car model, make, etc. With the right resale value, you can get the right value of a car and not get fooled by false car prices.
What is Used Car Valuation?
As soon as a car comes out of the showroom, its value starts to depreciate and continues depreciating each year. Furthermore, factors like the make and model of the car, total kilometres are driven, current condition, etc, affect the value of the car.
With the help of Used car valuation, you can calculate the current resale value of your car considering all these variables. With the right price, you can easily make a fair car purchasing or selling decision.
Factors Affecting Used Car Value
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.
How to Calculate Valuation of Used Car Online?
You can calculate the value of an old car either offline or online. An old car valuation done offline would lack certain factors as you may not be able to compare prices considering all the factors. Moreover, in an offline process, it would practically not be possible to visit all the dealers and compare the prices of each.
On the other hand, using an online way to calculate the resale value of an old car is a better option. This can be done using an online tool called Used Car Valuation Calculator This tool uses various factors to calculate the right and current resale value of your car. Moreover, you can also compare the prices of various dealers online.
Here is how you can do car valuation online using a Used Car Valuation Calculator on Policybazaar.com:
- Select the car brand from the list
- Select the model of your car
- Select the fuel type of your car
- Select car variant
- Select the year in which you purchased the car
- Now select the RTO of your car
- Select the number of owners and kilometres driven by the car
- Press the 'Calculate' button and you will get the resale value of your old car online.
How to Buy a Used Car Insurance?
If you are planning to purchase a used car, it is equally important to cover it against any damages arising out of third-party liabilities and accidental damages to your car. If the old car already comes with an existing car insurance policy, you must make sure to get it transferred to your name and renew it yearly.
Here is how you can buy new car insurance policy for a used car from Policybazaar.com:
- Visit the 'Car Insurance' page from the 'Insurance Products' dropdown
- Enter your car number and proceed further
- Select the rest of the details such as your car's RTO, make, model, year of registration, etc.
- Choose car variant and fuel type
- Fill in the registration form with your name, email and mobile number
- Enter previous policy expiry date and claim details
- From the mentioned car insurance plans, choose the plan that best suits your needs
- Choose the required additional covers for your vehicle insurance policy
- Check and pay the premium via desired online payment mode
- Once the payment is complete, you will receive your used car insurance papers in your mailbox.
Add-ons for your car insurance
FAQ’s on Used Car Valuation
Ans: You can calculate the value of your old car using the car valuation calculator for free on Policybazaar.com.
Ans: The resale value of a car refers to the price of the car in which it can be sold again in the market. For instance, if you purchased a car in 2018 and want to sell it in 2022, the price at which it can be sold in 2022 will be its resale value.
Ans: Your car insurance policy remains valid when you sell your car to someone. However, it is very important to get it transferred to the name of the new owner. This can be done by endorsements from your insurance company. Hence, vehicle insurance will be only valid if it's in the name of the new owner.
Ans: One of the factors on which the premium of your four-wheeler insurance policy depends is the age of your car. The older the car, the lesser will be its Insured Declared Value and so the premium will also be less as compared to new motor insurance.
Find similar car insurance quotes by body type
Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.
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