What affects the value of a used car?
Why is it that when you walk up and down a used-car forecourt, you will often see two or three similar looking cars with two or three very different price tags? That’s because a car’s value is not simply determined by how it looks. There are numerous factors that can contribute to a valuation, but let’s take a look at a few of the most significant.
This one’s a biggie. Whilst different cars have different longevities, no car can run forever. Mileage is often the best indicator of where a car is on its lifespan, often giving a more genuine indication of this than the car’s age. Due to this, a five-year-old car with lower mileage than a three-year-old car of the same model could feasibly have a higher value.
Whilst it should be obvious that the condition of a car will affect its resale value, there are a few things that, whilst not obvious at first glance, could still have a big impact on value. Underbody rust is a good example of this, as well as things such as tyre condition.
This can be thought of in terms of rarity. If the market is full of a particular model of used car, it means that more people are selling them than buying them. This drives the price down and vice versa.
Trim level or variant
Even if two cars of the same make and model are equal in each of the criteria above, if one has more bells and whistles than the other, this car will invariably have a higher value. Sports variants, as well trim levels including sat nav or leather can make a big contribution to the value.
Looking for a used car in the Norwich area? Come and visit us at Spencers today where we offer the very best in used prestige cars.