Three crucial things in determining used car value

With huge price tag, comes huge stress. Though the meaning of “huge” with regards to price can differ from people to people, the decision to purchase a car always remains a special one. To get the right car which caters your need, thorough research and test drives of various models is essential. 

After going through the processes of research, test drives and comparing cars, very few people get to satisfactory conclusions while most of them are left half-hearted. This can be attributed to the expectation vs purchasing power sentiment which is common among car buyers.

For people with low-budgets and high expectations, used cars can be the best alternate. Earlier owning used car was considered to be a sign of cost cutting and penny pinching, but end wit it has become a trend with increasing number of people inclined towards the idea to buy used cars for various purposes. In the used car scenario, initially the cars that were being sold were more than 10-15 years old, now the cars are hardly 5-6 years old. This has attracted many potential customers leading to a surge in number of used car buyers.

The reason people have developed a negative notion about used cars is because of the deceitful car dealers who sell faulty cars at high price to amateur buyers. To avoid getting cheated by such car dealers and paying more for cheap used cars, you can refer to the points mentioned below:

1      Brand of the Car: Some manufacturers are known for their cars that last really long while some cars deteriorate very quickly. Brands like Honda, Hyundai, Maruti Suzuki and Toyota are widely known for their exemplary durability and performance. Whereas, in the luxury segment brands like Lexus, BMW, Mercedes and Audi are known to be best performers. Since, cars made by these companies are known to have 40-60 percent of resale values, you can still opt for negotiation as car dealers often overprice used cars. If you are about to purchase a car other than these brands, it is recommended that you take professional help for inspection and valuation.

2      Car’s condition: A used car price is mainly dependent on its condition. The car’s condition has three aspects aesthetic, interior and mechanism. It is obvious that you are not looking for a rusted old box on four wheels. The car you are about to buy should be aesthetically appealing, most importantly it should not have any scratches and dents on the body. Some car dealers often hide cracks and rust patches with paint or stickers which can be hard to identify with plain sight. To identify them you need to look closely for any difference in the colour tone and press the stickers gently. When you get inside the car for a test drive, take a moment and take a look around you. Check if the car is clean and has no pest infestation like ants or bugs. Inspect the upholstery for any gaps or sponge damage. Before you start the car, check the glove compartment, horn, lights and other things. Finally, when you are test driving the vehicle, check the breaks, suspensions and fuel consumption. You can also opt to get the engine and other technical things checked by a trusted mechanic.

3      Age and ownership: If the car looks good and works well, the next question you need to ask is the age. There are chances that the car dealers might have done the major repairs just to sell the car and once the car is sold, you might end up paying more for repairs than for the vehicle. If you feel sceptical about the age of the car, you can ask for documents like insurance and registration papers. You can also lower the price by leveraging on the number of owners. The more owners of the car, the higher chances the chances of depreciation. There is no way to guess the kind of treatment the car must have got from its previous owners. Hence, the number of previous owners can also be a factor to reduce used car price.

If you are buying a used car for the first time, it is recommend that you do not make any hasty decisions and get the car checked thoroughly. You can also refer orangebook value to check the ideal price range of used cars. Since, orange bookvalue uses advanced algorithmic and data science-based value calculator to come up with results that suits your needs, it can be a great source to buy your first car from.

Editors's note: Promotional article by Droom