Car Valuations: Tips to Find the Market Value of Cars
Like anything you’re trying to buy or sell, the value of a car is determined by how much someone is willing to pay for it. If after negotiations you buy or sell a car for $7,000, then that’s its value at that particular moment in time. However, in order to buy or sell for the best possible price, there are ways to determine the market value of a car.
Why would I need to find the market value of cars?
Knowing the value of a car can come in very handy for a number of important reasons:
- To get the best possible price when selling your car
- So as not to overpay when buying a car
- Claiming insurance if your car is insured for market value
- Working out the total value of all your assets when applying for a loan
Knowledge is power and it’s always best to go into any sort of negotiation well armed. Calculating car market value is not an exact science, but there are methods for getting a reasonably accurate picture.
Obtain a professional car valuation estimate
In Australia there are several online car valuation providers who will supply the information you’re looking for. For a rough guide on the market value of a car, there are many free online tools.
However, for a more accurate valuation that takes into account any additions to the car that aren’t standard, the condition of the vehicle and the kilometres it has traveled, websites such as RedBook and My Car Price can provide a comprehensive valuation certificate for a small fee.
Compare your car against the market
If you don’t want to pay a fee to find out the market value of car, you can do the research all by yourself. Unless you’re buying or selling a rare vehicle, people will already be trying to sell something very similar in your area via online car sales websites. By searching for the make and model of the vehicle you want to buy or sell on websites such as Gumtree, Car Sales and CarsGuide, you’ll soon get a rough idea of the car’s market value.
However, the value reached using this method won’t be completely accurate, with many variables not considered. For example, knowing the sale price other people want to achieve for their car is one thing, but knowing what they sold it for after negotiations is something else entirely. This information would give a far more accurate picture of the market value of your car.
Don’t forget those great selling points
While you may have found similar cars selling in your area, and now have an understanding of the market value, it still could be worth much more. To determine the value of a vehicle, you must take into consideration these additional factors:
- Popular makes and models tend to hold their value better over time.
- Fewer kilometres than a similar vehicle may mean it’s worth more.
- Newer models will be worth more.
- Automatics tend to be worth slightly more than manuals.
- Log book maintenance and regular servicing is important because it shows how well the car has been maintained.
- A body in pristine condition and interior that has been well looked after will fetch a higher price.
- Additions such as stereo systems, security features and safety technology will increase the car’s value.
The value placed on these factors will be different for every person. Each factor is subjective and will be based on the needs and desires of prospective buyers and sellers. For example, some people will put a premium on the log book entries and maintenance of the vehicle, while others will be more concerned about the extras such as alloy rims, spoiler kits and chrome bull bars.
Car market value - the real figures
As a pre-approved car loan client of Positive Lending Solutions, you are entitled to a number of FREE services that ensure you get the car you want at market value or better. These include:
- A valuation using the same systems the lenders use to value cars
- A PPSR search to ensure there are no financial interests in the vehicle from a third party
- A nationwide search through our network of car dealers to find the perfect vehicle for you at the best possible price
Positive Lending Solutions does this for three reasons. Firstly, it ensures when your car loan application is submitted to your preferred lender, it won’t be rejected based on an over inflated valuation. Secondly, it ensures the car you’re buying has a clear title, hasn’t been written off, and is safe for purchase. Finally, the main goal for Positive Lending Solutions is to make sure you walk away happy, not the banks or the dealer or individual you’re buying the car from.
Car repayment calculator
If you’re in the market to buy a car, Positive Lending Solutions can help you identify what your car loan repayments might be. By entering information into the online car loan calculator tool, including the amount you’re willing to pay after your market value research, whether the car is new or used, and how many years you’d like to pay back the loan, you’ll be provided with an indication of your weekly, fortnightly and monthly repayments. This information is vital when deciding if you can afford the car you want, or whether you should set your sights higher or lower given your budget.
It also helps when you talk with a car loan expert from Positive Lending Solutions. By having a clear understanding of the type of car you want and the budget constraints you’ll be working within, your broker will be able to find the best car loan for you from many of the industry’s most reputable banks and financial institutions. This will ensure you secure a loan that doesn’t place you and your family under considerable financial stress, and you end up with the car you want.