Car depreciation can simply be defined as the price between the amount you paid for the car when you bought it and the price you expect to receive when you sell it. The decrease in market value of any car may vary depending on manufacturers and models. However, the most commonly used rule in this regard is as follows: cars can decrease in value between 15%-35% in the first year or up to 50% over a three year period.
What Affects a Car’s Value?
We are listing down some of the common variables that cause car depreciation more than others:
As common sense would suggest, the more a commodity or product is used, the lesser value it is likely to yield. It is no different for used cars. Internationally a car can be sold for more than above price range if it has covered 10,000 miles a year. Whereas, in Pakistan the distance range is up to 20,000 miles a year. Any more than that, and you may not be able to get a desirable price for it.
Current Car Condition
Much like mileage, this is also a no-brainer. The better the condition, the better the value. As simple as that! Damaged or broken body parts, damaged upholstery, repainted parts, and defected electronic parts, can all bring your car’s value down in proportion to the magnitude of damage.
One must keep this in account while buying a car as well.
Number of Owners
A simple rule is that the value of a car is inversely proportional to the number of owners it has had. So the fewer owners a car has, the greater its market value will be.
Have you been taking good care of your car? Well you might want to start now, if you weren’t already. Taking your car for servicing more often reassures its good condition. And keeping record of its servicing will reassure potential buyers of its good condition.
And you thought only humans had a reputation to carry? Well, your car has a reputation to safeguard too! Well, kind of.
Some cars have a better reputation for being reliable than others, and this can also have an effect on the value of your car. You can find a number of sites online that can help you find relevant information.
If your car has some of its manufacturer’s warranty left this could increase the value of the vehicle. Manufacturers in Pakistan offer a minimum of 2 years warranty, some may even offer more than that. It can help if you sell your car with considerable warranty period left.
Model of the Car
If your car is the most recent model in a manufacturer’s line, it will be more desirable when it comes to resale, while older models won’t have all the newest features and design improvements of the later vehicles, making them slightly less desirable and ultimately less valuable.
A fuel efficient car is that which covers the most number of miles in one gallon of fuel. If your car is fuel efficient, it is likely to get you a good quote from the market, and vice.
Along with consideration of all above factors you can estimate car price online with our price calculator.