The price of a new car is always governed by its official ex-showroom price plus the prevailing taxes as per the city. However, this is not the case in the used car segment – the market is still much disorganized which means estimating a fair resale value of your car is a difficult and a tedious task. Different buyers and websites will quote you varying prices. So how do you know your car’s worth? Here is our guide to help you know the right car resale value.
There are many factors that control and govern the price of a particular used car in the market. The biggest factor is the demand and supply of used cars in the market. If your car is among the list of popular cars with a higher resale value, you can easily ask for a higher selling price for it. That said, do consider other factors like lean periods (end of the year) or unforeseen circumstances like Demonetization. Factors like these may end up slowing the market temporarily for a few months.
Fresh cars always get a higher price in the market. However, if the model you own has had a revision with an update already in the showrooms, it will have an adverse effect on your car’s value. Likewise, if you are not the first owner be ready to cut down the price by another 10-15%.
Spend some time on online to see what consumers are quoting for a similar model in the same city. This will give you a fair idea of the market scenario. Make sure you tally the condition of the car and other parameters like odometer reading etc.
It is fruitful to call up a few dealers to know the actual market price of a car of the same year and condition as the one you are selling. Pose as both a buyer and a seller and within a few calls, you will have a fair idea of the right resale price that you should be quoting for your own used car. Do note that by doing this, you will end up getting a few calls back from the dealer at a later stage – but it is still worth the effort.
Classifieds with online valuation tools are a big gimmick. They promise to tell you the so called right price of your old car but the final figure is always inflated to attract the customers. However, the ultimate quote that you get after meeting the buyers through these portals is way too less. Only after you meet actual buyers, you realize that the quote these portals provide is nowhere near the actual resale value of your old car. Be wary of them!
The logical reason for such wrong price estimation is that none of the classifieds have actual transaction data on which a realistic pricing engine could be built. On the other hand, there are car buying companies like CARS24 that purchase thousands of used cars every month pan India and have actual transaction data of these cars. Their pricing engine is based on these true transactions and hence is very precise. Your car’s final value will be pretty much close to what CARS24’s car valuation tool will show. Interesting, isn’t it?
Once you have done your homework, work on a fair price that will also leave some room for negotiations. We Indians love to save that extra penny and hence, keep a 5% window and add this to the final price you would want for your car before listing it up for sale.
Are you short on time and do not want to invest your time and effort into all this? Then the best way to sell your used car is by getting in touch with us at CARS24. Get a free car valuation quote and register for a free inspection – that’s about it. We will give the best price quote in 30 minutes through our network of verified buyers. If you approve the quote, we transfer the money instantly and take care of all the pending formalities. Now selling an old car is as easy as buying a new one!