Selling a car requires thorough research before starting the process. Knowing the car’s value and being confident about it during negotiations is one way of getting the best price. The confidence often comes from knowing what one has to offer in terms of features and conditions. There are several ways to accurately determine the selling price of the car. Certain factors can positively impact its pricing and make it more competitive in the resale market.

Different car valuation methods

Collect all information about the car
The first step in determining the current market value of a car is to collect all information that affects its pricing.

Online car valuation tools
Several free online tools help evaluate a car’s current market price within a few seconds. One simply has to input the car registration number or the vehicle registration mark (VRM) and mileage details in the provided tabs of an online tool. These tools maintain a vast car valuation database. Car valuation tools do not require any personal information for basic evaluation, so be cautious of websites that ask for more information than necessary .

Track value history
Another method is to continuously monitor the car’s value over a period of two years. This includes monitoring market prices, the rate of depreciation , and price trends that may emerge. While this is a more lengthy and tedious process, it can provide accurate valuation and help one recognize the price trends and decide the best time to sell. It can also provide solid, convincing data points to justify the car’s value to buyers at the time of sale. One can also look at historical sales data, auction sites, and industry reports to learn the trends and values. For instance, the auction sites provide up-to-date details about the selling prices of the cars. Some car valuation tools provide monthly alerts through email as a reminder to track car value in real time . Some may also provide a valuation subscription for a certain time period , offered weekly or monthly.

Dealership or professional help
Free evaluation tools may have certain limitations, like inaccurate results for certain old models manufactured before a specified year. In such cases, one can get their best guess using professional help for an  instant car value check. Visit the nearest dealership or consult an auto expert and allow them to inspect the car thoroughly. The dealer usually examines the car’s condition, mileage, service history, and market demand. This option is best for those who want to avail of any trade-in offers. Alternatively, one can also employ the expertise of car valuation services online, which analyze one’s vehicle remotely based on provided details and photographs.

Car depreciation calculators
Another way is to use depreciation calculators to estimate the current market value of a car . This reverse method determines the latest value by considering the car’s original purchase price and the amount it has depreciated over the years of use. The algorithms of these tools consider various makes and models and use formulas like straight line depreciation method.

Factors that affect a car’s value

Damaged, non-working parts
Damaged bodywork or parts like seat warmers or electric windows usually reduce the car’s value. So, it’s best to sort out anything that can be fixed before putting the car up for sale.

High mileage and accident history
Quite naturally, a car that is used for a long time will have more wear and tear. Higher mileage often brings in less worth of a car. Similarly, cars with no accident history will fetch more value.

Model desirability and type of car
Any model in high demand or with a strong reputation for reliability offers a higher price. Luxury cars and SUVs, for example, usually depreciate about 60% in just about three years. Similarly, sports cars also have a bad reputation for depreciating faster. On the other hand, hatchbacks, minivans, and electric vehicles are affordable and practical for use, relatively easy to sell, and depreciate at a slow pace .

Gaps in service history
The valuation tools assume a car is in good working condition while providing a value estimate. But any gaps in the service records or non-availability of MOT (Ministry of Transport), which is a test that checks whether a vehicle meets the safety standards set by the government body, will affect its pricing.

Fuel type
Petrol, diesel, and hybrid cars have different pricing structures and market demands. Recently, the popularity of electric vehicles has increased demand and fetched better resale value for them. But it’s difficult to predict the same for fuel cars as it mainly depends on customer preference in a particular market.

Apart from this, some other factors affect the price:

• Adding some features to the car, like alloy wheels or multimedia systems, increases its value, so owners can demand a higher price.
• Having a full-service history record often stands out during resale.