How much is your car worth?
When you decide you wish to sell or trade-in your vehicle on a replacement, it is important to know what your vehicle is worth.
There are many factors that will determine the final price for your vehicle. It is important to note that the state of the market at that point in time will strongly influence the price you are able to achieve.
Let’s look at a few of the factors that may influence the price you receive for your vehicle.
Good Service History
There is a saying that the best predictor of future behavior is to look at past behavior. This could equally be applied to the servicing and maintenance history of a used vehicle. Potential buyers of a vehicle will look to see if the servicing routines have been adhered to and that all maintenance has been performed as per the manufacturer’s recommendations. If a vehicle has a well-documented service history, a potential buyer will be prepared to spend a little more as they know they are receiving a great example of this particular model.
This one factor alone could add thousands to the value of your vehicle or conversely you may lose thousands from the price you are seeking if the logbooks are missing and there is no written proof of the work that has been carried out on.
Manufacturer Options
Just as the price of your new car increases with the more options that you select, the value of your used car with these additional options will be more than an equivalent vehicle that does not have them. Although the value of the options will also have depreciated from their purchase price, popular options have the ability to substantially inflate the appeal and therefore the value of a used vehicle. Some of the more desirable options include a sunroof, satellite navigation, parking sensors and/or a reversing camera, leather upholstery and bluetooth connectivity. Make sure to highlight the inclusion of these options to a potential buyer so that they can appreciate the additional value.
Seasonality Plays a Role
Although it may seem a little unusual that the seasons may have an impact on the value of your vehicle, the reality is that the used vehicle market has strong seasonal influences. In general, the value of vehicles tends to reduce a little over the winter months as people tend to stay indoors and aren’t interested in going out to look for a replacement vehicle and the opposite is true during the warmer months. Some vehicles and their values tend to have an even greater seasonal reliance. An example of these would be convertible or cabriolet vehicles. They are great to have during the warmer months and are often sought out during the Spring. Yet in winter when it may be cold and rainy, their appeal diminishes rapidly.
Sources of Market Information
As the market ultimately determines the value of your vehicle, the best indicator of your vehicle’s value will be the current marketplace. In Australia, the biggest marketplace for used vehicles is on the Carsales website. A quick review shows how many similar vehicles are available and the price the market is prepared to pay for them. In addition, there are independent sources such as Redbook that publish the value of used vehicles through their own detailed analysis of the market over a very long period of time. Be sure to examine both of these forums to gain clear insight into the current value of your vehicle.
Also be aware that when selling your car the best price you will achieve will be via a private sale.