4 Factors That Dictate the Price of a Used Car

A lot of people are unaware of how a car is valued for second hand sale. At times they ask their mechanics to give them a valuation and they go ahead with the same. But there are great many things that make up for the valuation of a second hand car. A change in these factors can sway the price for used Mahindra XUV500 in Bangalore on either side.

Brand and Model

Each car brand has its own reputation in the market. Even when people purchase a new car, they evaluate the brand’s ability to get resale value. Some brands have more takers in the market for their used cars. Similarly, each brand has multiple models of cars with versions of luxury and prime and whatnot. Each model with a particular version has a different valuation.

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Year of Manufacturing

The calculation is pretty simple here. The older the car the lesser is its resale value. So a car that is 5 years old will fetch a better price than a car of the same brand but is 8 years old.

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The reading on the odometer is an indicator of how much the car has been used. A car that has covered more kilometres would have an engine that has seen some wear and tear. But if the kilometres covered are less, then the engine is still in very good condition and will last longer without any major maintenance costs.

Ownership Type

A car that has been used for commercial purposes would have seen a rough usage causing more wear and tear to the engine and suspension. Such cars demand higher maintenance. Hence their valuation decreases during resale. But if the car has been used for personal use then it gets higher valuation.