Car valuation refers to the average price a vehicle would sell in a given market per given time. Before this price determined some factors have first of all to consider.
Normally, the value of cars depreciates with age. Nevertheless, this rule does not always apply since there are some antique vehicles that actually sell at very dear prices. This therefore shows that no single factor can determine the value of an automobile per given time.
The most common factor used to determine the value of a vehicle is its year of production. A car that was manufactured a decade ago would be priced lower than a vehicle that was produced less than five years ago despite the two being of the same make. This is due to the fact that a car manufactured a decade ago has been utilized longer than one developed a couple years back. In addition to this, a vehicle produced only recently has more advanced systems as compared to its former therefore making it reasonable enough to sell it at a much higher price.
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A car’s brand is another factor that comes into play. Usually, cars manufactured by world renown companies can sell competitively despite their high prices. It is in such situations that vehicles from world renown companies sell at very high prices.
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During car valuation, the physical condition of the automobile is greatly put into consideration. An analysis of its engine and body condition is done. Any damage to the body of the vehicle would substantially lower the price of the automobile. A car with proper mechanics and efficiently working transmission system will be valued higher than that with a faulty transmission, despite the two being of the same model.
A vehicle’s paint job also contributes highly to the value of an automobile. Automobiles painted in primary colors sell for less. However vehicles that have custom colored bodies are sold at very high prices.
Mileage also determined the current price of an automobile. It is sensible to say that vehicles that have low mileage sell higher than those with high mileage. The above can be attributed to the fact that a low mileage shows that a vehicle has not been used for long and because of this, it is reasonable enough to sell it a high price. Vehicles with high mileage are also characterized by a lot of wear and tear.
The economic value of an automobile is directed by its level of maintenance. Normally, vehicles that have been properly maintained lack engine complications. From the above account, we can see that the value of the vehicle is determined by some factors. For one to ensure that his vehicle does not lose value with time, it is rather important that he takes great care of it.