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Car Depreciation

Most upsetting challenge

As soon as you decide to put your automobile up for sale, you have a predetermined price in mind. We’ve found that unless you have an extensive understanding of the market supply and demand situations, you may not be able to come up with an accurate estimate. Car depreciation is one of the essential elements that determine automobile sales.

Let’s explain the process of evaluating your car.

A deeper understanding of the automobile industry is always beneficial, whether you are selling or purchasing one. If you do not understand the information provided here, you can find yourself in a financial bind unless your automobile dealer (or broker) is an honest, reputable and experienced professional.

But, the case is entirely different with carexport.ae. We never put our customers. We don’t expect our customers to be academic geniuses who know all there is to know about everything. Because we are experts to the core, we do not take advantage of your flaws or skills. To serve you for many years to come, we’ve been here for a long time.

What are the factors that define the value of your car?

An experienced professional becomes handy whether you are selling or buying a car. Expert persons can quickly help you determine the value of your vehicle. Here are some of the most critical aspects that determine the exact value of a car:

Factors affecting valuation of cars

1) Manufactured Year

Every automobile starts to become older soon after coming out of the manufacturing plant. On average, a brand car quickly loses 15% of the value within a short span of 6-12 months. On the other hand, some vehicles even show up to 50% depreciation in their prices within the first five years. Every manufacturer is upgrading and face-lifting their cars. Therefore, newer car models are depreciating more quickly as newer cars become their competitors. The estimation of the car market value comes from comparing the ex-factory price of the unique model of the exact vehicle and calculating the overall car depreciation. But, some famous brands are strong enough to keep the car prices similar even after use. However, it varies from manufacture to manufacture.

Factors affecting valuation of cars

2) No. of Kms Driven

The mileage of the car defines its actual market value. But, sometimes, even older vehicles with higher mileage are better than newer models with lower mileage but poor service history or condition. Therefore, we can assume that mileage is not that important, affecting the value of your car. However, most car models start to depreciate from their actual value if it completes 10,000 miles (or 16,093Kms) in a whole year.

Factors affecting valuation of cars

3) Service History

The maintenance of any vehicle defines its current market valuation. So, we can say that maintenance and accumulated condition are the essential factors determining the current price. For instance, Honda recently gifted a brand-new car to one of the customers who kept the 1990 Honda Accord since it came out from the factory. Even after crossing a million miles, his car was still in outstanding condition. The owner used to take his vehicle for timely and proper maintenance and checkup service. Therefore, it is always recommended to convenient service your car from manufacturer.

Factors affecting valuation of cars

4) Size of Vehicle (Dimensions)

As per most car owners, the size (or dimensions) does make a difference in the car value. High-end cars depreciate more quickly as they are difficult to service and cost more to maintain. Usually, more prominent brands decline more commonly as they are expensive to maintain. On the other hand, smaller cars depreciate less because they are easy to maintain. Another reason is gas-guzzler and hard-sell points.

Factors affecting valuation of cars

5) Body Condition

The drivetrain (engine) is the most crucial component for every car owner. Since the engine is the most critical part of any vehicle, automobile owners are a significant concern. The importance of proper car maintenance extends beyond the car itself and its scheduled service appointments. When it comes to vehicles, appearances and presentation do essential.

Factors affecting valuation of cars

6) Reputation of Manufacturer

When buying an automobile, everyone has a preconceived opinion based on the leading brands now dominating the market. There are very few people that go to a car dealership only to purchase a vehicle. Most people who go automobile shopping have already made up their minds. The engine’s overall comfort, performance, horsepower, and fuel economy are essential in depreciation.

Factors affecting valuation of cars

7) Number of owners

The number of previous owners also defines the current value of the car. More owners have lesser value for the vehicle. On the flip side, single-owner vehicles are more valuable and sell quicker than others with more previous owners.

Factors affecting valuation of cars

8) Colour of Paint

There are tens of colours options available from manufacturers. But, everyone has their own choice when it comes to car colour shades. But, the most famous and high-selling car colour is white. Everyone easily loves to have a white-coloured car.

Factors affecting valuation of cars

9) Addons & Repairs

Usually, the market value of your car cuts down with the addition of body kits, spoilers or any additionals like lighting or alloy rims. However, any colour touch-ups or modifications can significantly reduce the car price because the person buying will compare it with the original car. Adding anything or changing stock parts to an existing vehicle is considered equivalent to repairing the car.

How quickly is the value of my automobile decreasing?

Why is it that some models are hugely popular while some are only scratching the surface? It is necessary to know why and how the most popular ones can hold their own in the market. It’s puzzling why specific models are so well-known while others are hardly making a dent. Knowing what makes the most popular products so successful is critical. As we saw from depreciation, we compare the cost of a new automobile to its auction value. It indicates that the car will not depreciate quickly if these rates are lower than the market value is.

Some popular automobiles’ high depreciation in the first year can mislead buyers. However, the depression progressively evens out, resulting in a fantastic value that is often more than 50%. Because of this, while making your decision on a vehicle, you should consider such aspects.

It means that all you have to do is contact us. If you have the time, please get in touch with us to purchase your automobile, pick it up, and take care of the paperwork.

Thank you for choosing Carexport.ae as your trusted partner in selling your used car. With our commitment to providing a seamless and convenient experience, we ensure that you receive a fair offer, quick payment, and expert assistance throughout the process.

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