The moment you drive your new ride out of the showroom is the moment your car starts depreciating. That’s the nature of the market and also why used car prices in Singapore are usually at a more affordable point. Along the journey of your car ownership, be it for getting a quote on your car insurance, or wanting to sell your car, you will likely be asked, “How much is your car valued at?”
This is also applicable to those who are interested in buying used cars. The most important thing you’ll have to take note of before transacting is the value of the car you are buying.
So how do you calculate a used car’s value? To help you out, we have compiled a few tips to help you find out how to determine the value of your car and how much it’s valued at.
1. Understanding How A Car Depreciates
By understanding how a car depreciates allows owners and buyers to have a gauge on how much their car is worth. This is extremely useful when you want to sell your car and also when buying a new car. Here is how the annual depreciation of a car is calculated:
Annual Car Value Depreciation = (Total cost of vehicle – sale value of vehicle)/Number of Years in Service.
When you have knowledge of this, it will be easier for you to negotiate better deals.
2. Do Market Research
Another way to determine the car’s value is to browse online catalogues. There are a wide variety of cars, of different models and age, that you can make comparisons with.
However, do note that some of the cars listed online are from dealers and may have their value adjusted according to the condition of the cars as well as the packages that it may come with. Hence, the estimate given may not be entirely accurate.
3. Place It on an Auction
What better way to know the value of your car than testing out the true demand and supply of the market? You can place your car up for auction and for dealers to bid for your car. Let the eventual demand from people determine the value of your car.
The most direct way to find out your car value is to utilise car valuation services that are available! CARRO has a team of experts who will be able to give you a transparent and comprehensive price analysis.
Do you have other tips? Share it with us!