If you’re planning to sell your car, the first question you’re likely asking yourself is “how much is my car worth?”. It’s a good place to start, and while you can probably google a price range, it’s not always easy to gauge. At We Buy Cars, we can help. In this article, we’ll explain the main factors that will affect the valuation of your vehicle.
Many factors will determine how much your car is worth. These will include things such as mileage, the age of the car, any extra features it has. Knowing the value of a vehicle is crucial whether you’re buying or selling – after all, you need to ensure that you don’t feel cheated by the sale. Luckily, at We Buy Cars, our team is made up of genuine and professional buyers, who want you to get the best price possible. Here’s what we take into consideration when evaluating…
Age or market year
The age of a car certainly affects the depreciation rate – this is because older cars generally tend to have more wear and tear, as well as the need for more repairs. With automotive technology improving at a rapid pace, it’s also easier than ever to tell an old model from a newer one. For example, older models often don’t have mod cons such as a reverse camera, hands-free, navigation systems, and features such as Apple Carplay that more and more buyers look for now. As you might have correctly gauged, generally speaking, the older a vehicle, the less it’s worth. There are exceptions to this of course – Vintage and Collectable Classic cars often retain their value, and a new-car shortage can sometimes mean used-cars sell for more than new ones (which we saw after pandemic factory shutdowns).
You might be wondering “how much is my car worth if there are lots of miles on the clock?” Well, the truth is, even if the car is in impeccable condition with a zero-accident record and sparkling exterior, a high mileage car is likely to steer buyers away and sell for less than a vehicle that has fewer miles. The only way to preserve your car’s value in this sense is to drive less. This is obviously something that’s often unavoidable, but mileage is one of the most important factors when evaluating a vehicle. To determine whether a car has reasonable mileage, simply multiply 12,000 by the age of the vehicle. For example, a five-year-old car should have no more than 60,000 km to maintain high market-value. Having said that, a diesel-fuelled car has 30 to 40 percent better fuel efficiency compared to a petrol car, meaning you tend to get more kilometres out of a tank, and more ks out of the life of a car in general. When it comes to buying a diesel car, buyers may be willing to overlook a higher mileage than their petrol-fuelled counterparts.
Brand or make
The brand or make of a vehicle can be a subjective topic however, it is true that certain brands have better reputations for durability than others. Toyota, Subaru, and Honda all have above-average resale potential because they are known for their excellent longevity. When looking at vehicle makes, we have found that sports cars and convertibles tend to sell better in our Australian climate, as well as four-wheel drives – this is because there’s a higher demand for them.
Despite appearing impeccable, service and accident history is crucial to the valuation of a vehicle. If a car has been involved in a serious accident or incident, your car will be worth less than one that has not. You can expect this factor to diminish your car’s value by approximately 10 percent.
History of ownership
Surprisingly, the ownership history of the vehicle also plays a role in how much your car is worth. For example, if the owner had a tendency for work-related travel such as an Uber driver, this would decrease the value of their vehicle. Whereas, if the owner was a retiree who simply drove to the shops and Church on Sundays, then the value of the car would be higher simply because it’s been driven less, and less pressure has been put on it mechanically.
Appearance and damage
The Interior and exterior condition of a vehicle can either reduce or increase the price and appeal of the car. If the car has lots of scratches and marks with an unpleasant odour and hasn’t been cleaned, then the price will decrease. However, if the car has undergone a professional cleaning and appears to have no obvious damage to the exterior, the price may increase.
Ready to find the answer to “how much is my car worth?”We can help! There are several factors that determine how much your car is worth, such as the make and model, mileage, and more. If you’re still interested in obtaining an accurate estimate of your car’s value, get in contact with us and we’ll help determine the best price with a complimentary evaluation.