Used car values vary year-to-year and month-to-month as supply, demand, and market conditions shift, sure. But there are plenty of factors affecting the value of your car that remain the same. While some of them, you don’t have control over, others, you do!
Whether you’re looking to get a clearer picture of why your car was estimated to be worth a certain amount or you want to maximize your trade-in amount, we hope the following guide will help you better understand the various key factors influencing the value of your car.
1. Model Year or Vehicle Age
The age of your vehicle has a significant bearing on how much it’s worth. That’s because cars are considered depreciating assets. With the exception of rare classics, most cars lose value over time. In fact, dealers may not want you to know this when buying new cars, but most cars incur the largest percentage loss in value during their first year of ownership. Then, their rate of depreciation slows after around the five-year mark.
2. Condition and History of Your Vehicle
There’s a 1:1 correlation between how well you (or previous owners) have taken care of a vehicle and the current condition. Luckily, when it comes to improving your car’s resale value, improving its interior condition and exterior condition, cosmetically speaking, is easily achievable by getting your car detailed.
You can also fix major mechanical issues, but you should weigh the cost of doing so carefully against how much you could recoup. It’s often a good idea to shy away from any major mechanical repairs and instead cut your losses.
3. Mileage
The mileage of your vehicle has an inverse relationship with the price. In other words, the more mileage you’ve racked up over time, the less your car will be worth. This is especially true with foreign and luxury vehicles.
4. Trim Level and Equipment
When you build and price a new vehicle, higher-trim models with luxuries like ambient lighting, massaging seats, and leather upholstery cost more. When it comes to car pricing, these models often sell for more later on, too. But that’s only true to a point. Where you can really seek more value out of a used car when selling it online is with extra equipment and standalone options.
Be sure to make your car as close to stock as possible when trading it in, though, as certain additions and modifications– *we’re looking at you, bumper stickers* – can reduce a car’s trade-in value.
5. Local Market Conditions, Supply, and Demand
When demand is low and supply is high, expect to receive less for your vehicle as a rule. While the car market as a whole will have a larger impact on your vehicle’s value at any given time than the local market, both matter. There could, for instance, be a higher regional demand and lower supply for used SUVs with 4WD in one area of the country than another, driving prices up.
6. Who You Sell To
It’s no secret a dealership will offer you less than a private party (AKA a regular everyday person) when you go to trade-in your car. People usually choose the dealer for convenience alone. But with a company like SnapAutos – that doesn’t sell cars to the public – you can get more money for your car and benefit from a more convenient online sales process. Now that’s a win-win!
Get an Offer for Your Car in 30 Seconds
Get an offer in 30 seconds! Our process is designed to help you save time while getting the most for your vehicle. So get your car value online now with SnapAutos!