How to Judge Whether You Are Getting the Best Price of Your Old Car
You will know you are getting the best resale value of your car if you visit a service provider who’s honest and transparent about the process of evaluation and when you are honest too about the service history and/or any accidental damages done to your car.
Most of the time we are unhappy with the amount that is offered to us by the car dealer or buyer because we believe that our car should have fetched a better price than what they are quoting. The truth is, we forget that there are multiple factors that help a professional determine your car’s estimated resale value during a thorough car inspection or evaluation. I am sharing a list of 19 factors that affect the resale value of your car. Hope you find them helpful.
1- Depreciation Factors
Cars, like any other asset you own, are subject to depreciation. This includes yearly depreciation levied on all assets. Another factor is the insurance depreciation value which is again, directly proportionate to the age of your car.
One more thing about depreciation, it is always calculated on the ex-showroom price of the car and not with the on-road price. If somebody tells you otherwise, ask them to recheck their facts.
2- Ownership Ownership is a crucial deciding factor for a car’s resale value. If you are the first owner, you will receive a better price as compared to the second or third owner of the car. Another reason why ownership is important because the rate of interest on financing a car/ getting a loan against it is high.
3- Manufacturing Year of the Car The older the car, the more it has depreciated, which means that it will fetch lesser money. It is important that you know when is the right time to sell your old car.
4- Fuel Type
Another deciding factor for the resale value of your car is the type of fuel it runs on. A petrol car will fetch you a better price as compared to a car with a diesel engine. The reason is, in Delhi, you can run a diesel car for 10 years whereas a car that runs on petrol can stay on the streets for 15 years.
5- Registration Number Where you bought the car and where you are selling is also an integral factor while selling a pre-owned car. Let’s say you bought your car in Bengaluru and then brought it to Delhi where you decided to sell it. Now, what would happen is, that the buyer will have to put in an extra effort to get the papers transferred and the jazz. This is troublesome for the buyer which makes it difficult for the dealer to sell it, at the end this means, less money for you.
6- Odd Models/ Low Selling Models Let’s say you saw a car before the launch and pre-booked it but later the model didn’t do so well in the market or you went for a car which is not so popular on the streets but you bought it because you liked some specs of the car or you love the exclusivity (this does not include luxury cars), it will hurt the resale price of your vehicle.
7- Market Demand How popular is the car that you are driving? Do you see the same model often on the road? If the answer is yes, your old car is likely to fetch a better price than the other cars. A more popular car means that its a reliable car and people are looking to buy it which means that the car dealer won’t have to waste his/her time on looking for the car or caring for it. Such cars are a win-win for both the parties.
8- Insurance Type
Your car insurance type also has an impact on what your dear old car will get you. Surprised? Well, it’s not that complicated. The more insured the car is, the easy it will be bought and sold. There are 3 major types of insurance policies available in India. Zero depreciation cover is the most prefered one followed by a comprehensive cover and finally the third party insurance. What’s the difference between the three?
Zero Depreciation Cover get a policyholder the full claim amount on the value of replaced parts, following an accident ( a little catch here, it is available for cars that are less than 3 years old).
Comprehensive Insurance covers third-party liability and expenses incurred in the event of damage or theft as well as personal accident cover.
Third-party Liability Insurance is available for all vehicles on the road but the only thing is only covered minimal risks, and it does not protect the policyholder for damage or theft of the insured vehicle, or injuries suffered.
9- Condition of the Car The condition of your car has a lot to do with what you’ll get for selling your car. Your car might be just a year old but if it has been damaged badly during an accident, it will put a big dent in the resale. On the other hand, if you come with a 5-year-old car that has been well kept, you’ll get a good amount.
10- Kilometers Driven Odometer read plays a key role while selling a car as it is an indicative factor of the wear and tear of your car.
11- Facelift/ New Model or Feature Let’s say you own a car A and the manufacturer introduces a newer model with better features or a facelift, the cost of the existing model takes a punch down in that case. Much like what happens with cell phones, a newer model means price fall for the older one.
12- Odd Colours
Some of us like having a bold or quirky colour on our ride. While we tend to live it, others i.e. the next buyer might not be interested in buying a car with a bold colour which means that you will get a low resale value. So, the choice is up to you, you can either drive a ride in a colour you fancy or think about the resale value.
13- Service History Having a look at the service history helps the buyer determine the health of the vehicle. It gives the buyer a detailed history of all the work done on your car starting from regular servicing to any sort of denting and painting job done on the car including the number of colour coats on it. The more the coats, the lesser the resale value.
14- Which Variant of the Car Do You Have A higher variant will automatically get you a better price as it offers more features (enhancing the driving experience).
15- A Newer Car Model is Due to be Launched Soon Upcoming models lower the resale value as the demand of the existing model falls. People anticipate getting more from the newer avatar of the car.
16- Personalisation and Modifications
If your car still has the original look and accessories, you’ll get a higher value on the other hand if you have got some parts fitted from the open market (like music systems, CNG kits and the likes), it is bound to bring down the value. There are a couple of modifications that are illegal in India. Make sure you don’t make the mistake of getting those done.
17- Accessories/Features What kind of accessories and features does your vehicle offer? If there are some top-notch things on the table, people will pay you more for it. The better the features and accessories, the easier it will be for you to sell your old car. Just make sure that they are functioning well and are legal.
18- Second Key Availability Seems like a trivial thing but it is a part of the mandatory documents for selling a vehicle, be it a two-wheeler or a four-wheeler. Have both sets of keys gives the buyer a sense of safety and security.
19- Upkeep and Maintenance The upkeep and maintenance of cars from a particular brand can be relatively high and not many people like things that are high maintenance. Sometimes people even ignore the fact that a couple of these ‘high-maintenance’ brands actually offer one of the best engines or for that matter, cars. So, sorry my dear friend, but your beautiful high-maintenance car will not really get you a fabulous price.
Is this information all too overwhelming for you? Let's me make it simpler. You can do a very easy thing of going to carbiqi.com and scheduling an appointment. Our representatives will make sure that you are not cheated during any part of the process. We keep you in the loop every step of the way and offer free RC transfer and no hidden charges.
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