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How Do I Find The Fair Market Value Of My Car?

Team BankBazaar

There might be several reasons for you to sell your car. You might want to sell your old hatchback and upgrade your ride to a sedan, or you might need some extra cash. Of course, there might be other reasons as well. Whatever the reason is, if you are planning to sell your existing car, you might also want to figure out the actual market valuation of the same. This will help you make an informed decision.

The fair market value of your vehicle will be dependent on factors such as the kilometres clocked on the odometer, the cosmetic condition of the car, features and accessories installed in it, and so on. The value will also be decided by the age of the car and the depreciation thereafter. That said, no matter how old or new your vehicle is, it is advisable to find out the actual market valuation before you sell it.

Why is it important To Know The Fair Market Value Of My Car Before Selling It?

Although it may not seem important to know the fair market value of your car, there are certain things which will give you an edge when you negotiate with your car buyer. Let us take a quick look at some of these benefits.

  • Getting the best deals: Whether you are selling your car to a second-hand car dealership or a third-party, knowing the market value of your car in its current state will help you negotiate well. Even if you are exchanging your old car for a new one, you do not have to blindly take the buyer’s words for the price of your vehicle.
    The buyer will be looking for an opportunity to get the vehicle for as low of a price as possible. However, your aim will be to make the most out of the deal. Knowing the fair market value of your car will help you achieve that.
  • Avoid getting robbed (literally): Used car dealerships are one of the easiest options that one can resort to when it comes to selling used cars. However, these dealerships also have a bad name for shelling out as little money as possible when they purchase a used car. If you have an idea of the market value of your car, you can avoid being underpaid for the same.

What Are The Main Factors That Affect The Value Of A Used Car?

Now that you are aware of the pros of being informed about the fair market value of your car, let us find out the main factors which affect the valuation.

  • Mileage: This is probably the first and foremost factor which is taken under consideration for this purpose. You might be able to fetch a fairly decent price for your car if the kilometre count is not too high. A high odo count denotes higher engine wear and tear and this pulls down the price of the car. Even if your car is just a year old but it has hit the tarmac to a count of, for example,30,000 kms, you are likely to get a lower price for your vehicle as compared to other cars of the same make and age that have clocked fewer kilometres.
  • Features and overall condition: The overall condition of the car is an important factor. If the car is well-maintained and is in mint condition, you are likely to get a higher value for it. The features on it (such as automatic gearbox, power windows, sunroof, etc.) are also responsible for the valuation.
  • Personalisation of the vehicle: This is a factor that can pull down the price of your car drastically. A person looking for a used car is likely to prefer a stock car over a highly accessorised one. Aftermarket performance parts might not harm the deal, but cosmetic changes might. Even if you have performance parts installed on the car, it is advisable to provide the stock parts along with them to make the deal more lucrative.

How To Calculate The Fair Market Value Of My Car?

Evaluating your car based on its current condition can be a tricky job. However, the best practice would be to do your research on the public domain. There are some online calculators which give you the approximate price range for your car based on its make, model, year of registration, kilometre count, and location. You can use also use these portals and provide detailed information about your vehicle to get a better and more accurate quotation.

That said, be judicious when it comes to selling your old car and do not rush into a deal. Make the most out of it and be safe on the roads.

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