What are the factors that influence a used car price?

05 December 2021

For first-time people who want to sell their car or those who have had limited experience with the sales process, it is important to know what problems in the vehicle will decrease its value and what allows you to get a better price.

Knowing the pros and cons of your car will help you get closer to knowing the right price to sell quickly and make the most profit possible and try not to fall into one of the most common mistakes people make, estimating the wrong price.

We are going to show you, in a general way, the main factors that affect an evaluation of a vehicle

Valuation factors

Kilometers traveled and Odometer

The kilometers that a car has traveled is one of the factors that determine the price in a valuation and generally, the vast majority of vehicles with low mileage have a higher value than those with a greater number of kilometers traveled, but this does not mean that this is absolute, there are factors that must be evaluated in the use and mechanical condition of the car that can be known with an inspection and driving of an expert.

There are cases where someone tries to cheat or deceive by restarting the odometer (the device that measures the distance traveled in kilometers) to try to increase the vehicle's value, but it is not advisable to do so since this is a crime and becomes a scam and is punishable by law, in addition, an expert can identify when the odometer has been reset by checking other components of the car.

Exterior and Interior condition

The general car's condition can increase or decrease its value dramatically when there is visible or significant damage on the inside (board, seat, and covers, etc.) or outside (crash, bad paint, etc.) will not be able to get a better price as you wish.

The condition of a used car will usually be rated as fair, good, or excellent; if the vehicle has many modifications on the outside (there may be implications with insurers), the value can be less.

A polished like a very good clean condition inside and out, always can help, never underestimate the presentation. Professional cleaning could be a good investment before trying to sell your car.

Pay special attention to chair covers on the back, especially if you've had children in the car or pets.

Do not forget that nobody wants a car that has a bad smell, such as cigarette smoke. Remember to also clean the glove compartment and other compartments.

Vehicle make and Model

Some vehicles are more likely to sell than others, there are some automobile models that also have a better reputation for durability and other aspects, making them ideal options for those wanting to buy a used car, for example, Japanese models tend to have a better reputation for resale than German models, but of course, it is not in all cases.

The supply and demand of some models is another factor to consider, and, for example, if there are a lot of cars of the same brand and model as yours entering the used car market, this will also affect the price due to the offer and demand.

Mechanical condition

keep the automobile in excellent condition for your peace of mind and safety is very important, but it is also to be able to sell the vehicle later when you want to change cars since the car will be checked not only for its exterior, an excellent condition of the engine, the tires, the transmission, and others are important, this is something that preserves the value of the car over time.

Badly maintained vehicles with greater mechanical wear depreciate faster, that is, they lose more value.

Maintenance service history

If you can show a complete service history (as possible) of the car at professional auto service centers as part of regular maintenance overtime to keep the car in top condition, this becomes evidence that you have taken care of your car and this will add positively to the value, that is why it is said that "condition is everything"

Of course, you will need to show maintenance receipts

Accident history

Driving safely, defensively, and following traffic laws is the best way to stay safe and without accidents, unfortunately, sometimes accidents happen for different reasons and this, in addition, this can reduce the resale price, is recorded in the vehicle's history, which can currently be consulted online

In general, a serious accident will reduce the resale value of any vehicle, 10 percent of what the same car would get if it had no accidents, of course, we are talking about a vehicle in optimal conditions, that is, after the accident, it has been repaired in its integrity.

This loss of value happens because in general, people who want to buy a vehicle, prefer to buy the same vehicle but that does not have a history of accidents and would only buy it for a lower value even when it had been repaired and was in perfect condition after being checked by a certified technical service.

Less commonly known factors affecting the price

Old vehicle

This is not related to its condition, but to its age, In Dubai, a bank will not finance a vehicle that is older than 5 years, this means that potential buyers will not have the option of financing their purchase and will instead have to buy it with money right from their pocket and that can make it less likely to sell.

Dubai Exports Market

Dubai has a vibrant export market of used vehicles and this can affect yours, this is because exporters are usually looking for specific makes and models and even colors, they sell the desired cars at higher rates but can end up devaluing those that do not fit into their specific needs.

An automobile that fits the criteria the exporters are looking for can be priced 20 percent more than the same that does not meet that criteria.

Many exporters, for example, want original paintwork on the used vehicle. If your car does not have original paintwork, it will not be worth as much as those that do; when you try to value a vehicle, you want to pay close attention to the export market to avoid overpricing it.

New models and discontinuations

Carmakers create new models practically every year. This directly affects your car's resale value; imagine that you purchased a BMW Series 3 and BMW releases a new model the following month. What happens to your car's value? it decreases by 15 percent immediately

This depreciation is not connected to the separate issue of how old the car is, which can give you an idea of how tough it can be to value an automobile on your own.

If your vehicle’s model is discontinued, the same thing will happen, but in some rare instances, the value can increase because of supply and demand, but that is not what usually happens, so don't count on it as a bet.

Seasonal effect

The seasons can affect the purchases of automobiles In Dubai, the summers are scorching and it is common to see the demand for convertibles go up in the winter in expectation of the hot months; if you have a 4x4 or a convertible, have it priced in the winter to get the highest possible value.

Tips for selling

Take lots of quality photos
If selling online, include detailed descriptions
Clean very well, external and internally
Remove personal items, including bumper stickers
Choose listing sites carefully
Price it correctly

Keep in mind that selling does not have to be a frustrating or long process. If you ensure it is priced correctly, it is the most crucial thing you can do to get the sale.

Remember:

When valuing your car, you need to find people who are experts to do so. It is never a good idea to turn to inexperienced resellers or valuers because they will end up giving you a price that will make it harder to sell.
Watch out for price scams
Turn to experts

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