Cars are the embodiment of success, and it is also a measure by which society sees the individual and how well they have done in their lives. However, many people resort to buying a used car before a new car so that they can practise driving and get to know all the nuances of it and then buy their new dream car and enjoy the driving even more.
It is one of the reasons for the success of the used car market, but how is the car evaluated? or valued for the price it is resold? While the car valuation process in India and worldwide is the same, there are many factors to consider when performing a car valuation.
The Process of Used Car Valuation
The car evaluation process is not foolproof; neither is it an exact science. It cannot be accurate as humans set the parameters, and a certain degree of subjectivity has to be exercised by the owner or the buyer and seller of the used cars.
Let us look at the evaluation process of used cars and how it affects the car’s resale value.
- Condition of The Car
Checking the condition of the used car is part one of the process of the used car valuation. The potential buyers of the used car will see the condition of the car before even thinking about buying it, the external condition of the car should be good, there should be no dents and no paint coming because that will create the first impression of the car. If it is not in good condition it will bring down the value of the car. As for the interior, the seats, dashboard, everything should be clean and then comes the evaluation of the used cars engine, clutch, steering, braking system, the gears. Based on all these above factors, the car will be evaluated.
You can also check car valuation on CARS24 to determine its value, as they follow all the procedures to bring only the best-used cars in the market.
- When Was The Car Purchased?
When the car was purchased is an important question for used car valuation because it might positively affect the price if the car is two-three years old. Still, if the car is more than ten years old, it brings the value down significantly, and if the model of the car is out of manufacturing, it makes it harder to look for spare parts and makes servicing of the car a big hassle. Therefore the year when the car was purchased directly affects the valuation of the car.
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- The Number Of Kilometres Driven
The number of kilometres that a used car has been driven is inversely proportional to the valuation of the car. The more the number of kilometres in the odometer reading, the less the value of the car.
People do not like to buy cars that have been driven extensively and especially if it reaches the one lakh kilometre mark, which makes any car undesirable for many individuals. That is why the odometer reading is checked before making a valuation of a car.
- Modifications Done to The Car
Every car is modified in some way or the other to suit the needs of its owner, but this is a factor that negatively affects the value of the car. People will not like to buy cars with modifications done to them, and this singlehandedly brings the value of the used car down during the valuation process.
- Service History of The Car
Used cars that have a history of servicing can increase the value of the car immensely. And if there are any repairs and parts of the car that have been changed, the quality of the parts has to be evaluated as well. If they are good quality parts, then this works in favour of the car. Checking the service history of the car reveals a lot about its owner and its upkeep, and these factors add value to the car when the car valuation is taking place.
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- Accident History
If a used car has met a major accident and parts of the car have been damaged and replaced, it makes the car lose its value, not to mention that the safety of the car is also compromised. This is the reason why the accident history of the used car is checked during the car valuation. After all, nobody wants to buy used cars that have been involved in accidents.
- Ownership of The Car
If the used car has multiple owners, it implies that it has gone through more wear and tear, which lowers the value. This can be ascertained by looking up the Registration Certificate(RC) of the car. That is why in every car valuation this is thoroughly checked. You can check the vehicle transaction history on Vahan portal.
- The Model of The Car
When the valuation of the car is done, the manufacturing and the model of the car are kept in mind. If the used car wants a buyer, it should be in production because then the servicing and spare parts are available. But if the model is discontinued then this makes the servicing expensive. Nobody will be willing to give money to a used car. Hence the make and model of the car are also important factors to consider when the car’s valuation is done.
The used car market is booming, and people are more inclined towards buying these cars as it costs less. They can get good deals, and with some repairs and maintenance, the car is as good as its new counterparts.
However, a good evaluation of a used car is one of the most essential things to do. That is why the companies selling cars do a thorough evaluation before putting the used car out on the market, making the selection process simple for both novices and experienced. After all, it is because of used cars, the dream of having a car now seems achievable to everyone.