What could possibly determine the value of a used car? This question may likely cross your mind if you are planning to buy a used vehicle. Miscalculation of a used car’s value has led so many to “buyer remorse” feelings.
“Buyer’s remorse” usually occurs when a buyer feels cheated or defrauded by a dealer, hence proper car valuation is really needed, as this will help avoid “buyer’s remorse” which is one of the most common aftermaths associated with a used car purchase.
In this article, we will consider what determines the value of a used car. How do companies such as Detailed Vehicle History assign a monetary value to a used car? And lots more.
The Value of a Used Car: Why Should You Care?
As an analogy, consider a plate of food, the moment the food on the plate has been eaten it will henceforth be referred to as a ‘dirty plate’, same could be applicable to cars, at one time they were new and shiny, as they travel down through time, tear and wear, accidents and possibly improvement in technology may make the car old and outdated.
This however may not be the case for some cars, especially for some old cars, so what determines the value of an old car? There are cars whose value increases with an increase in time. These are known as classic cars or collectibles, just like ancient artifacts classic cars appreciate their value, one of the reasons being their scarcity and quality.
So when considering car value, keep in mind that classic cars, though they may be old, may likely have a high valuation as to a modern car. But the question of what determines the value of an old car still remains, some old cars have a certain value due to the level of importance the owner attached to it, for example, a young man who lives in California said: “This car is quite precious to me, it is my grandfather’s car and I will never sell it”. In this case, this owner attaches a high value to this car.
Detailed Vehicle History now provides support for used classic vehicles and modern cars providing vehicle history reports for both, vehicle history report is a powerful decision-making tool that is now helping millions around the world to make data-driven decisions during trade-ins, buying and selling of used cars.
Read Also: Cars That Hold Their Value the Strongest
So why should you care? You may be buying or selling a used vehicle in the nearest future,
According to Ally Financial nearly 70 percent of Americans (69%) would be likely to consider a used vehicle for their next auto purchase, the report went further to say that 40% of those who currently owned a used vehicle were enticed by that particular make/model, while others (61%) felt it was less expensive going for a new car, while the business minded buyers claim they were able to get more car for their money (34%), the point is: more and more persons are developing interest in a used vehicle, and so can you, hence there is need to know if a vehicle really worth the price tag attached to it.
What is the Best Value for a Used Car
How can you find the value of a used car? There are websites that offer services in used car evaluation, Detailed Vehicle History is one such company that provides market value information for used cars.
How does Detailed Vehicle History evaluate used cars?
Detailed Vehicle History leverages the market value API service provided by Vehicles Databases to determine the true value of a used car. Now here is how it works.
Several factors and data are considered before establishing the value of a used car, among which are car depreciation costs, present market value, dealer transactions, auction data, etc.
Vehicle Databases constantly monitor and analyze data from used car markets in every state and province in North America.
With respect to price fluctuations for every make and model, an AI-powered algorithm compares and takes averages on millions of transactions to recommend the best possible price that reflects the current market condition.
Generally, the retail value of a car is dependent on so many factors which we cannot exhaustively discuss in this article. Hence you can find the value of a used car by looking up any used vehicle’s VIN with the Detailed Vehicle History’s VIN lookup tool.
How windows sticker aids car valuation
Window stickers also known as Monroney labels were in time past known as price stickers, this is because it provides insights on MSRP, and other possible costs associated with the new car, the insight provided by a window sticker can help a buy to calculate or evaluates based on the depreciation a used car had undergone to know what the car’s current value may likely be.
Let us mention that Detailed Vehicle History provides window stickers for both classic and modern vehicles.
What are the pitfalls associated with used car purchases?
Is buying a used car a good idea? Buying a used car is still a good idea, due to the fact that it has been confirmed to be economical, nonetheless, there are still things to be on guard of when buying a new car, which may include the following:
- Stolen cars
- Salvage cars
- Cars with debt on them
- Cars with police markers
- Cars involved in an accident
- Lemon
- Cars with reversed mileage
- Flood damage
Should fear of these pitfalls prevent you from enjoying the huge economic benefits associated with the purchase of a used vehicle? Not at all, Detailed Vehicle History as a company understands the agony associated with the purchase of vehicles with any of the above issues, which is why used vehicle buyers are now presented with a rare opportunity to see the history report of any used vehicle they intend to buy.
