How is Car Value Determined?

Car value is not a static thing and is affected by all sorts of outside factors. In one sense this is good news as it means car prices generally depreciate in value and so there are always bargains to be had; however, one of the problems with a fluctuating market is that it can be tricky trying to ascertain the true value of a car.

With this in mind, what are the factors that affect car value?

We need to recognise the difference between new cars and used cars. The value of new cars is generally much more stable than the value of a used car as, quite simply, when a car is driven off the dealer forecourt it begins to depreciate in value.

In fact, the mileage a vehicle has on the clock is a huge factor in terms of a car’s value – for very obvious reasons. Therefore, it is very important to know the mileage before you commit to anything.

There are also more subtle factors that come into play. For example, if you’re buying a car that has mostly been driven in the countryside then it may be in a worse condition than one that has been driven on inner city roads, because of road condition.

Obviously the car’s condition and mileage is very important; however, the market itself can fluctuate. For example, many drivers these days opt to trade in their vehicles or sell them to car buying companies.

If you want to check the price of a car you can consult an online price guide.