Unless you own a car that is rare or is a model that collectors are interested in, every year that passes by causes your car’s value to depreciate. Knowing what your car is currently worth is very important because it allows you to purchase the right amount of insurance coverage without mistakenly devoting more money to its premiums than what is ultimately worthwhile. Likewise, you can avoid buying too little insurance coverage for it by knowing how valuable it still remains. Furthermore, keeping track of your car’s value lets you strategically decide when it would be the best time to sell it.
Various online utilities are available that can calculate the probable value of cars after their owners input various pieces of information about their vehicles. If the car is a popular model produced by a mainstream and reputed manufacturer it will cause value estimation programs to consider it a more valuable vehicle than others. People shopping for second-hand cars tend to focus on cars that fit these criteria; this is why you would want your next vehicle to fit these criteria as well when it is time to shop for a new car, as it will leave you with a car that can also be sold for a good amount of money at a much later date.
Besides what kind of car it is and who manufactured it, one of the most critical factors that car finance calculator take into account is how many miles its odometer indicates the car has travelled in its lifetime. This is a more relevant indicator of its performance for second-hand shoppers than the actual year it was originally manufactured, for constant use naturally causes the car’s components to physically depreciate much faster than the simple passage of time. In fact, three-year-old cars are often 40% less valuable than their brand-new counterparts. Car owners are therefore inclined to restrict the amount of driving they do on a day-to-day basis, as any amount of time spent driving will naturally lower the value of their cars.
Another factor that directly determines whether your car’s value is high or low is how many times it has been recorded having to undergo repairs. If a major repair job either had to be carried out on its panel or needs to be performed in order for the car to no longer be considered written off, that will be reflected in the car’s VIN. This will significantly decrease its overall value and the likelihood that shoppers will consider buying a potentially defective or partially broken product even at that lower price. However, car finance can reduce future repair cost, increasing the value of the car.
As for smaller physical issues such as dents and scratches on the panel, each of these will technically lower the value of the car unless its owner pays the money necessary to have them professionally treated and removed before selling it. It is a good idea to treat each issue as it arises by maintaining your vehicle at a regular rate, and this schedule helps to keep the degrading internal components working properly as well. Keeping your car’s outward appearance and internal performance in good shape will prevent an excessive level of depreciation.
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