When it comes to selling or buying a car, it is essential to know what can influence how much a car is valued at, as this is the only way to ensure fair prices.
Generally speaking, the age and kilometres travelled help calculate the value of a vehicle. However, there are other factors that can help increase a car’s commercial value.
Find out in this article how to value your car before selling it and which cars tend to increase in value as the years go on.
Which Factors Should You Consider When Valuing a Car?
The following aspects are used to value cars:
Age
Generally, cars with diesel engines lose an average of 60% of their initial value after 5 years, while petrol cars lose 50%.
Mileage
Much more than just a number, the kilometres a car has travelled say a lot about its condition and lifespan.
Cars with more kilometres tend to face problems with various mechanical components.
Therefore, the higher the vehicle’s mileag, the more likely it is to undergo repairs, making it less appealing on the second-hand market.
Exterior and Interior Condition
Like its mileage, a vehicle’s appearance can cause its commercial value to rise or fall.
For example, if seat belts or rims are damaged, the vehicle’s value will tend to decrease.
Consequently, the better the exterior and interior of the vehicle, the higher its commercial value will be.
Extras
Although not all cars have them, the ones with extras such as a Sat-Nav, mobile phone connection, and heated or electric seats, among others, tend to have a superior commercial value.
Though it may seem like more of a personal choice, the truth is that colour plays a crucial role in car valuations.
According to a study by Axalta, colour is a critical factor in 88% of decisions to purchase vehicles, as it reflects the personality of the vehicle owner.
Which Cars Colours are the Most Valuable?
According to other studies by the same company, which is an auto body painter, car colours that fetch higher prices align with Europeans’ favourite colours. For this reason, unsurprisingly, grey, white, and black cars are the most valuable on the used market.
What is the Depreciation of a Vehicle per Year?
One of the simplest ways to calculate depreciation is to research the average price of a car model on the used car market and compare it with the cost of the car at zero Kilometres. This will give you an idea of the vehicle’s depreciation.
Another way is to apply the average annual depreciation rate. It is estimated that cars depreciate between 10% and 20% in their first 2 to 3 years and between 5% and 10% in the following years.
6 Tips to Add Value to Your Car
If you plan on selling your car, you should do the following to add value to it:
- Always use original parts;
- Polish the headlights (front and rear);
- Show maintenance and repair history;
- Cover paint scratches with a polishing compound;
- Clean the upholstery to make the interior look as good as new;
- Wash the car before showing it to potential buyers.
You should also drive carefully to minimise wear and tear on the car’s components. By doing so, you will make the most of it without having to spend a lot of money.
Which Cars Will Increase in Value in the Future?
Whether by chance or as an investment strategy, many people are looking to buy old cars. What few people know is that some models have a high market value.
In this sense, the cars with the potential to increase in value over the next few years are:
Fiat Punto GT
With a turbo engine, the Fiat Punto GT reflects its 90s sporting nature.
Citroen Saxo Cup
The Citroen Saxo Cup is pure adrenaline on four wheels. With an appealing power-to-weight ratio, this sports model offers an exciting drive.
Peugeot 106 GTi
One of the most striking hatchbacks of the late 90s, the successor of the mythical 205 GTI, promises a breathtaking performance.
Now that you know what influences car valuation and which cars will increase in value the most, it’s time to put the advice given in this article into practice.
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