How to Estimate a Used Car’s Value
The market for used cars is quite huge in the UAE. According to dubizzle’s used car market report, over 60 % of respondents showed interest in buying a used car. Luckily, you will find used car auto markets in almost every Emirate, and you will find plenty of used cars online as well. Whether you want to sell or buy a used car, you should be able to estimate a fair market value of the vehicle in order to get the best deal.
However, the value of a used car depends on many factors. This guide explains how to estimate the value of a used car.
Important Factors to Calculate a Used Car’s Value
Estimating the value of a used car can be tricky. Although there is no exact science or formula for used car valuation, some factors play a crucial role in the estimation process. Let’s talk about some of the crucial factors that help determine the value of a used car:
- Vehicle’s age: The car’s model determines the age of the vehicle. A car model that is just two years old is going to have a higher value than an older model. Even the same model will have a lower value if it was bought 5 years back.
- Mileage: This is an essential factor. Measuring mileage pretty much sums up if a used car is worth buying or not. After travelling 100,000 km, the used car’s value depreciates faster. The more a vehicle is driven, the more it depreciates in value.
- Model: The resale value of newer and well-kept models is usually higher. That is why buyers are always curious about the car’s year of manufacture.
- Trim: A combination of features make a car’s trim. Most models have different versions backed by various specs, depending on the car’s make. Some examples of Trims include Standard, Limited or Platinum. However, please know that cars loaded with high-end trims typically depreciate more and faster than cars with fewer bells and whistles.
- Car condition: A well-maintained car in a visibly good condition will have a higher value than a car that clearly seems like it has seen better days. Scratches, dents and repainted panels can make the car less appealing to buyers.
- Service record: Again, car service increases a used car’s value. A record of regular maintenance not only increases the vehicle’s lifespan but also enables buyers to pay a good price. It is common for buyers to pay more for a car that performs better on the road owing to a well-kept engine.
Car Value Calculators
Thanks to the World Wide Web, there are several car value calculators online. Tools can help you determine your car’s resale value and let you know about the appropriate price to buy a used car.
You can find free car valuation features on dubizzle. Just fill in the information regarding make and model, trim, year, mileage in kilometres and regional specifications. Once you’ve filled in all these details, click on get my car estimate.
The car value estimator will then get the approximate price range of your used car, the number of offers made on the website for your car’s make, and the number of cars sold via the website.
Please note that this is going to be the transaction value of your car and not your asking price. You can charge over the transaction price determined by the website when selling your used car. However, charge the buyer given the actual condition of your car. We in no way, mean that you should ask for more money if the car’s not worth it.
Our platform either sends a team to inspect your car or calls you for vehicle inspections. Selling used cars with the help of a used car dealer or online is subject to a car inspection.
More importantly, dubizzle car inspection goes on the buyer’s behalf to the seller, inspects the vehicle in detail and provides a comprehensive inspection report.
Determining the car’s value also helps with a car trade-in.
Same Models, Different Values – What Could be the Reason?
Now, you might notice the price of two cars is different even though they have the same features, specs, year and model. Therefore, it is necessary to know your car’s value before purchasing a used car. There are many factors that can affect the value of a particular vehicle including:
- Regional specifications: Almost every model comes in regional variations. Usually, cars with Japanese specs go for a higher price when compared with GCC or American specs.
- Mechanical history: If a car was in a major car accident or does not have a good servicing history, its value will go down. Usually, buyers get a qualified mechanic to inspect the car before making the final purchase.
- Car service records: Generally, used-car dealers have this record. However, if you are buying a used car from a private party, ask them for their car service maintenance records.
- History of accidents: Residents of the UAE can easily access this data. You can simply go to the official police website of your Emirate and find out about the number of times a specific car has been in accidents, inquire about the traffic fines incurred by the vehicle and even learn all about the vehicle’s certification.
- Interior and exterior features: No one wants to buy a car with a compromised engine, unsafe tires or rusty dented doors. Every buyer checks a vehicle inside out thoroughly before buying a used car. If you’re the seller of a used car, make sure you haven’t damaged any of these features. If minor touch-ups are needed, get them sorted before offering your car for sale.
Can the same models of used cars have different prices?
Yes, price variation for the same models is normal in used cars. The price depends on a number of factors such as mileage, service history, history of accidents, interior and exterior features, regional specs and car performance.
Does a car’s value go down after an accident?
Yes, a car’s value diminishes after an accident, even if it has been repaired.
From where can I buy a quality used car online in the UAE?
In the UAE, dubizzle is one the most popular platform for online buying and selling used cars.
That is all about determining a used car’s value. If you’re interested in buying one, go through this checklist for buying a used car in the UAE.
Stay tuned to the UAE’s leading auto blog for more information on buying and selling cars in the UAE.