Availing a Used Car Loan? Know How to Get Your Used Car Valuation Done

While buying a pre-owned vehicle, it is important that you do the valuation of the car to determine whether it is worth buying. Besides, if you are planning to apply for a used car loan, you need to provide the lender with a valuation report of the used car that you intend to purchase, in order for them to sanction the loan. Here are some factors that will determine the value of your car.

Factors That Determine the Value of a Car

• Vehicle Condition

When it comes to the condition of the vehicle, many factors come into play. Like the way you examine the exteriors for any dents and scratches, the interiors matter too. Used cars come with some wear and tear. However, the condition of the engine, braking system, gear, steering, clutch, tyres, seats, etc. are important determinants of a car’s condition. Any mechanical problems and maintenance issues can bring down the value of the vehicle.

• Kilometers Driven

A general notion is that a vehicle starts giving functional troubles after it crosses a certain kilometre mark. Most owners, therefore, sell their vehicles before reaching the 1 lakh kilometres mark on the odometer. Cars driven beyond this mark will likely have a very low resale value. Moreover, most people going for a pre-owned car hesitate to buy cars with an odometer reading of over 1 lakh.

The odometer reading is a crucial factor in evaluating a used car. If it shows a higher number in kilometres, its value will be lesser.

• Purchase Year

Cars older than 10 years normally have a much lower resale value owing to the fact that most of such models are discontinued after a few years and that the availability of spare parts for them would be a hassle. As a result, dealers and buyers give priority to cars that are still under production.

• Accident History

A car that has been subject to accidents, be it major or minor, will have an impact on its value. While cosmetic damages are less likely to affect the value of the car, the one that underwent a major repair and makeover after a direct collision will have a much lower value. In such cases, the present appearance of the car does not matter much as buyers are more concerned about the future troubles that might arise out of the vehicle. The insurance claims for the vehicle can give away a lot of information on the accident history of the car.

• Service History

A well-maintained car is what everyone wants to own. A car that has undergone regular check-ups and service maintenance is likely to be in good condition. Such cars with a record maintained for regular services and genuine spare part replacements will have a high trade value.