Fundamental Things That Will Determine the Value of Your Vehicle
- Written by a contributor
Vehicles have become a necessity for most people. Whether it is dropping children to school, going to work, running errands, or heading out for recreation, the convenience they offer is unparalleled.
But when your vehicle reaches the end of its life and it comes to disposing of the car, many questions enter your mind. One is its worth and the amount you will put in your pocket when you sell it.
It could be you are targeting individual buyers, or leaning towards a local cash for cars service. Whichever the case, the subject of how much the vehicle is worth is a reasonable question.
One thing to consider is that costs are not standard. Two vehicles of a similar make, model and manufactured the same year may vary in price enormously.
The final value will be based on the following variables.
The Working Condition of the Car
The working condition of the car is essential in determining its value. When a cash for cars company can refurbish some parts, the value is higher than when they cannot.
It is the same thing when selling to an individual. They will test the car to see whether it is in working condition or not.
They cannot pay a top dollar for an automobile that has no value in it. When it is running, there will be no need to tow it. It can be driven away without issues.
Mileage
Mileage matters a lot whether you are buying or selling a car. The lower the mileage, the more value it will have. It shows that the car has not been driven extensively.
For example, a car with less than 100,000 kms will have a higher value than one with 200,000 kms or more. Also, it is better when it does not have any mechanical issues.
The Condition of Rust and Corrosion
Even when the paint job is in good condition but the metal parts are rusted and corroded, the value is low. The metals have degraded over time, and it may not make sense to scrap them.
There will be no chance to turn the scrap into quality crude metal. Thus, even when a cash for cars company purchases the vehicle, they cannot sell it to a recycling plant for a high value.
They will have to dismantle it themselves, and they will not be making good money from it.
The Maintenance of the Car
Regular maintenance is essential, and this is one reason manufacturers recommend a schedule. For example, they recommend oil and filter changes after a specific time.
It should be followed to the letter. A well-maintained car is reliable and is in better condition than one that is not taken care of well.
When selling the car, it will increase its value. It is paramount that you have the maintenance records with you.
Besides manufacturer’s recommendations, whenever you notice something is amiss, have it checked by an expert. For instance, if the engine light stays on as you drive, visit a technician as soon as possible.
The Price of the Scrap Metal
The price of scrap metals is not standard. It varies from one area to the other and from time to time. It could be high in April in a specific city and low in August in the same city.
The cash for cars service provider inspects the automobile to determine the value then compare it with the current scrap metal prices.
Rates vary for different types of metal. Cast iron may cost differently from steel and aluminum. Also, the better the condition of the metal parts, the higher the price.
Make, Model, And Year of Manufacture
The make, model, and year of manufacture have a significant price variation. Some models will fetch higher returns than others.
For example, a Mercedes S350 will cost more than a Maruti 800. The higher the value of the car at the original price, the higher its value even when damaged.
The year of manufacture is also an important determinant. A car that was manufactured in 2005 will have a lower value than one manufactured in 2018.
Despite this, the same car models manufactured in the same year may vary in price. It will depend on their working condition and that of the metal parts.
Interior Condition of the Car
The interior condition of the car affects the resale value. A car could be in good working condition, but the interior is an eyesore.
For instance, if someone smokes in the car and the upholstery, mats, or carpet will be burnt. One carries a dog, drinks, and eats in the car, there will be stains.
Perhaps, it is even stinking. These are some of the reusable items in a car, and if they are not in good condition, the value will be lower.
It has adverse effects on the value as it can lower it by hundreds or even thousands of dollars. Despite this, the good thing is that with cash for cars, you will not be required to restore the interior. The car will be bought as is, although the value will be lower.
Get a Fair Valuation
When selling the car, make sure that you get a fair evaluation. There are many service providers out there, but working with a reputable one will see you get a fair value.
End-to-life vehicles will vary in prices from one buyer to the other. Get quotes from different of them.
It is recommended you give the actual condition of the vehicle, and get quotes from at least three providers.
Whether you are selling the damaged car to an individual or a cash for cars service these factors are paramount.
They will want to know its working condition, which metal parts are good, and its year of manufacture. Also, they look at the mileage and current scrap metal rate if it’s the latter buying it.
As you sell it to the cash for cars company, have evidence with you that it was sold. You should get it in writing, and this is one reason you do some paperwork before you release it.
