A new car starts depreciating in value the minute you drive it off the lot, but the amount it drops will depend on several key factors. Understanding your car's value and how we calculate our car valuations is key before listing on AutoFlip. In this guide, we'll discuss these key factors in detail to help you determine the value of your vehicle.
Age of the Car
The age of your car is one of the most significant factors in its valuation. Savings finance journalist Harrison Astbury says, "It's not unusual for cars to lose around a quarter to a third of their value in as little as two to three years." This rapid depreciation means that a newer car will generally lose value quickly, whereas older cars depreciate at a slower rate after the initial period.
Make and Model Popularity
The make and model of your car play an important role in its valuation. Vehicles from reputable brands known for their durability, reliability, and performance tend to hold their value better. Popular models in high demand on the used car market usually fetch higher prices.
Mileage
Mileage is a clear indicator of how much your car has been driven, and it typically impacts your car's valuation inversely. The higher the mileage, the lower the valuation. Cars with low mileage are often perceived as better buys, as they're seen as having less wear and tear, potentially requiring fewer repairs in the near future.
Service History
A comprehensive service history can be a real asset when it comes to resale value. A well-maintained logbook shows potential buyers that your car has been cared for properly. Regular maintenance and timely repairs documented in a service logbook can significantly increase buyer confidence.
Body Type
The type of vehicle you own also influences your car's value. For instance, utility vehicles and SUVs currently have high demand in many markets, including New Zealand, due to their practicality and perceived safety. Cars that fit into these desirable categories tend to retain their value better than others.
Car's Condition
The overall condition of your car, including any past damages and the current state of both the exterior and interior, plays a pivotal role in its valuation. Any history of accidents can negatively impact the value, whereas a car without significant damages or issues is more likely to attract a higher offer.
Colour and Features
Certain car colours and limited-edition variants can increase or decrease interest and value. Standard, popular colours generally sell faster and may fetch better prices. Along the same lines, upgrades like high-quality sound systems, leather seats, or advanced tech features like reverse cameras and GPS can boost your car's attractiveness and value.
External Modifications
Any external modifications, such as custom paint jobs or body kits, can positively or negatively impact your car's value, depending on market preferences. While some buyers may appreciate unique enhancements, others might be wary of potential over-customisation and future maintenance issues.
Trust AutoFlip to Value Your Car Accurately
By understanding the factors affecting your car's valuation, you can better prepare it for sale on AutoFlip and potentially increase its value.
Remember, a fair car valuation is not just beneficial for setting a price; it also means we can effectively negotiate based on your car's value on your behalf. The friendly team at AutoFlip is here to provide a seamless solution for getting your car in front of serious buyers, supporting you every step from valuation to sale.
