Cars are expensive items. They continue to be worth a significant amount many years after they were first bought. It is common for owners to sell their car to finance the down payment on their new purchase. This is usually pegged at 20% of the new car’s value but they can pay more in order to reduce their interest and shorten their loan term. The amount that they can obtain from the sale will depend on several factors that are related to the car. There are also outside forces that can be at play. Here’s how to determine used car worth:
Relevant Factors
A used car will generally be worth less than a new one. One of the biggest influences on this is age. You can check for the graphs of the most likely trajectory of car prices per model. There is usually a steep decline in the first few years followed by a more gentle depreciation that continues as the car ages. However, buyers will also check the odometer for the total number of miles logged. Higher mileage means greater wear and tear. Lower miles make the car more interesting. Current mechanical condition, exterior appearance, and maintenance records matter as well.
Special Cases
Some units might defy the typical price projections due to upgrades. Owners who are particularly fond of cars make replace stock parts with specialized items. For example, they could add custom carbon fiber spoilers, steering wheels, and body kits. They could go all out with a new infotainment system or a sunroof. They could get a custom paint job to make the car unique. Sometimes the fact that it was previously owned by a famous person or that it was used as a prop in a famous movie could increase its value. There are also super cars that have limited runs. The rareness of these models can make them sell for much more than their original price.
Market Forces
For a concrete idea of used car worth, owners should check online classifieds to see how much people are charging for their cars. The free market is self-regulating. If someone prices a car too high, then there won’t be many offers. He will be forced to sell it lower so that it can attract more bids. If someone prices the car too low, then it will get a lot of offers and the owner will be able to pick the highest one. Look into multiple listings of the same make, model, and year. This will give you a good range to work with.