How to Estimate Fair Market Value of the Used Cars?

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How to Estimate Fair Market Value of the Used Cars?

Whenever you buy or sell a used car, it is very essential to determine the fair market value of the car. Irrespective of the brand or car model, its value starts to depreciate from the moment you take it out of the showroom, and it will continue to depreciate with each passing year. That is the reason why the used car valuation tool is used to assess the price of the car by taking into consideration various factors such as the model of the car, kilometer driven, overall condition, etc.

In present times, the used car market is more popular than new cars. In 2019, the used car market was $24.24 billion, and it is expected to register a 15.12% CAGR during the estimated period 2020-25. Almost 4.4 million units of used four-wheelers were sold in India in 2018-19 alone.

The car valuation tool has become very effective as it can provide any potential buyer/seller a fair market value of the used car to ease off the process of buying and selling accordingly.

How can Valuation Tools Determine Fair Used Car Price?

Buying a second-hand car is a smart financial move but for that, it is very essential to know the fair price of the car beforehand. Also, it is necessary to know several things about the car such as the condition of the engine of the car, the number of kilometers the car has already run, if the car has undergone any kind of major or minor accident or not, general condition of the car, documentation, registration, and type of insurance the car has, etc.

In the valuation tool, all these factors are taken into consideration before giving you the estimation of the price of the car. Thus, with the help of the second-hand car valuation tool, you will not only be able to check the used car price but can make an informed buying decision with a better understanding.

How to Calculate Car Price with a Second-hand Car Valuation Tool?

The second-hand car valuation tool is based on data science and employs 21st-century machine learning to generate a fair market price based on the information a user provides.

It is quite easy to find out the fair market price of any second-hand car with the used car valuation tool. All you must have is a smart device with a running data plan to access the official website. Once you log onto the respective web portal, make sure you have information pertaining to the used vehicle with you. It includes:

  • Make: Brand name
  • Model: Car name
  • Year: It is the year you purchased the car
  • Trim: Trim is the unique alphabet code assigned to each model. You can find the trim with the car model name.
  • Kilometers are driven: As highlighted in the odometer.

Based on the information provided by the user, the system generates a fair market price range.

If you are looking to receive an optimum value for your used car, the aesthetics along with the body matter a lot. If any scratches or dents are there on the car then it will bring down the price of the car to a great extent. As a seller, you must know that you will get a good value of the car if it has a proper maintenance record and there is no major technical issue in the car.

Go Online to Buy Top-Notch Used Car

Every car suffers from wear and tear with its age. But when you buy a second-hand car with an online car dealer you get the car at a fair value since they check the condition of the car such as the condition of the car engine, gear smoothness, braking system, condition of clutch, tire thread, steering ease, etc. and they provide a fair assessment report. The information of this assessment needs to be fed in the valuation tool for determining the fair price of the car before buying the used car. Again the number of kilometers the car has run is taken into consideration while finding out the valuation. The number of kilometers that the car has been driven is inversely proportional to the value of the car. That means the more the car has been driven the less will be the value of the used car.

Thus, buying or selling a second-hand car has no more remained a tricky situation as it used to be some years ago. You just need to purchase the car through a good and authorized car dealer that deals with second-hand cars. Deal in an organized market only. Here you will get a fair price and authentic cars. In 2018-19, the second-hand car market of India was almost 1.3 times the new car markets. You can realize how popular is this market right now! They use the car valuation tools and will provide you a fair price.