Determinants Of A Car’s Value Car valuation can be described as the course of determining the current price of a vehicle based on its condition at that particular time. Normally, car valuation is determined after careful consideration of some factors. Normally, the value of cars depreciates with age. However, price depreciation for automobiles does not always occur since rare vehicles have been known to sell at very dear prices despite the fact that they were produced decades ago. This therefore shows that no single factor can determine the value of an automobile per given time. The most common factor used to determine the value of a vehicle is its year of production. A car that was manufactured a decade ago would be priced lower than a vehicle that was produced less than five years ago despite the two being of the same make. This is because the vehicle produced ten years ago has undergone a lot of wear and tear as opposed to one developed just a few years ago. When the two vehicles are compared, the recent one is found to have highly sophisticated and modern systems that make it qualify to be sold at a very high price.
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In addition to this, car branding is a major determinant when it comes to valuation of a vehicle. For instance, we do not expect a vehicle manufactured by a local brand to fetch more than that of a vehicle produced by an internationally renowned company. In this case, the car manufacturer indirectly determines how much a vehicle will be valued in both local and international markets.
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During car valuation, the physical condition of the automobile is greatly put into consideration. This entails both its engine and body condition. When assessing the physical condition of a vehicle, the valuation always investigates whether the vehicle has suffered any substantial damage on its bodywork. Moreover, an automobile with a good working mechanical system will always be costlier than one with all manner of faults. Car value is also affected by its body color. For vehicles with easy to find primary colors, their pricing is fairly low. On the other hand, cars that have custom paint work on their bodies are sold at high prices. Car value is also affected by its mileage. In discipline, vehicles with low mileage are highly priced as compared to ones that have very high mileage. This is because the cars with high mileage show that the vehicle has been in use for a very long time. In addition to this, a car with a mileage has a lot of wear and tear. The economic value of an automobile is directed by its level of maintenance. If at all the vehicle was well kept, then it’s engine would function perfectly well and thus sell at a higher price. It is, therefore, evident enough that the market price of a car is dictated by a conglomeration of factors. Proper use and maintenance of an automobile is the only way that will ensure that it does not completely lose its market value.