Car valuation can be described as the course of determining the current price of a vehicle based on its condition at that particular time. For this price to be arrived at, some factors have to be put into consideration.
In discipline, as a car gets older so does its price depreciates. However, price depreciation for automobiles does not always occur since rare vehicles have been known to sell at very dear prices despite the fact that they were produced decades ago. This therefore shows that no single factor can determine the value of an automobile per given time.
Year of manufacture is one of the determinants of a vehicle’s market value. Usually, vehicles produced only recently sell much higher than those that were manufactured many years ago. The above can be attributed to the fact that a vehicle produced a long time ago has been in use for a very long time as opposed to one that was manufactured recently. Also, the latter has a more advanced system as opposed to its former.
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Vehicular brands also dictate the value of an automobile. For instance, we do not expect a vehicle manufactured by a local brand to fetch more than that of a vehicle produced by an internationally renowned company. In this case, the car manufacturer indirectly determines how much a vehicle will be valued in both local and international markets.
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When valuing a vehicle, its physical condition must be carefully considered. An analysis of its engine and body condition is done. If at all it has ever been involved in an accident, then its pricing will generally depreciate. The better the transmission and mechanical power, the higher the value of the vehicle.
Color is also another determinant when it comes to car pricing. Basically, vehicles painted in ordinary colors fetch lower prices. Nevertheless, vehicles with custom paint jobs are valued highly.
Mileage is another factor greatly considered when setting the price for an automobile. In discipline, automobiles with high mileage are valued cheaply as compared to those with low mileage. This is because the cars with high mileage show that the vehicle has been in use for a very long time. In addition to this, a car with a mileage has a lot of wear and tear.
The economic value of an automobile is directed by its level of maintenance. If at all the vehicle was well kept, then it’s engine would function perfectly well and thus sell at a higher price. From the above account, we can see that the value of the vehicle is determined by some factors. Proper use and maintenance of an automobile is the only way that will ensure that it does not completely lose its market value.