Valuation of Used Car in 2022
Price varies depending on a variety of variables that affect the car’s value:
- Car Manufacturing Year: In terms of valuation, the car’s manufacturing year matters and not its registration year.
- Vehicle’s physical condition: Examine the interiors and exteriors for dents, paint flaking, and rust. Check the evenness of the door panels. Examine the bonnet and visually check the body for any damage.
- Car Functions: Working or not for the following functions-AC efficiency, power window operation, central lock, steering, lights, indicators, door locks, etc.
- Drive-ability Condition: Any engine, suspension, underneath, cornering, speed lag, or glitches that impair drive ability significantly reduce the value of the automobile.
- Service History: Car’s service history should be properly documented. Check out these points: Where was the vehicle serviced, an authorized workshop, and what parts were suggested for replacement?
- Accidental History: Check NCB Status, the Accident History of the Vehicle, the Door Panels, and the Gaps on the Body for Insurance Claims
- Mileage: The number of kilometers the car was driven. If less than 200 Kms each month, there is also cause for concern.
You may obtain a good estimate of the resale price you can expect for your automobile based on the above mentioned considerations. If you’re unsure of how to value your automobile, you may use an online calculator to get an idea of what it’s worth. Simply enter the vehicle’s information, such as its make, model, version, location, ownership, etc. You may obtain the anticipated pricing for this car after entering these parameters.
You must understand how automotive depreciation is calculated whether you intend to purchase a new vehicle or are considering selling one that you already possess.
Depreciation is nothing more than the gradual decline in your car’s worth.
Here is an example value grid for gasoline and diesel vehicles depending on how much they depreciate each year and how many miles they are driven.
| Car Age | Up to 12,000 kilometers of depreciation | Up to 12,000-25,000 kilometers of depreciation | Up to 25,000 to 35,000 km kilometers of depreciation | Up to 35,000 to 50,000 km kilometers of depreciation | Up to 50,000 to 60,000 km kilometers of depreciation |
| 1 years | 15% | 20% | – | – | – |
| 2 years | 20% | 25% | – | – | – |
| 3 years | 25% | 30% | 35% | 40% | – |
| 4 years | – | 30% | 35% | 40% | 45% |
| 5 years | – | 35% | 40% | 45% | 50% |
This is an example grid that may be applied to the process of valuing cars. For instance, suppose you spent Rs. 5 lakh on an automobile. The car will be valued Rs. 4.25 lakh after 10,000 kilometers and a year (Depreciation of 15%).
Cars that have been driven for more than 1 lakh miles often depreciate by more than 85%. Additionally, vehicles older than 15 years can only be sold for junk.
The table above provides an illustration of a price range for cars. Depending on a car’s condition, service history, accident history, and other factors, its actual buying price may change.
When looking for a used car, Vroom Wheel can help you make the most of your search while ensuring that all of your requirements are met.