When you are thinking of buying or selling a car, the first thing that comes to your mind would be “market value of a car”. It is important for every car owner to know their accurate market value in New Zealand.
There are a variety of factors that come into play to determine a car’s value, including age, mileage, make & model, and features. Understanding all these factors will help you to make an informed decision when selling, trading, buying, or assessing your vehicle.
There are a lot of factors that can affect your car’s value. And some of these include:
Age: Age is the primary and number one factor for any car. Newer cars with less mileage usually have more market value, as they have not had as much wear and tear. Older vehicles will depreciate over time, depending on the number of years; however, some vehicles touted as more popular will retain their value, such as the Toyota Corolla, Subaru Forester, Honda Civic, and Honda Accord. These vehicles have a reputation for longevity and low cost of maintenance.
Mileage: Cars with lower mileage, even older cars, are usually worth since they have less engine wear. High mileage reduces a car’s value; if the car is well-maintained, then it can retain significant value.
Condition: Vehicle’s physical and mechanical condition matters. A well-functioning engine with minimal damage will be worth more compared to a damaged, dented, or scratched vehicle.
Make & Model: The make and model of a vehicle can impact a car’s market value significantly. If a car is a widely sought-after model like a Toyota Corolla, Honda Civic, Honda CR-V, or Mazda 3, it can be more valuable for resale or scrap than other less-desired models.
Accidents and Repair History: Cars with major accidents or structural damage often have lower market value because of a lack of interest from buyers due to safety issues. Because sometimes, even after repair, vehicles can be unsafe.
Features: Additional features like premium sound systems or sunroofs, or even new technology features like GPS or back-up cameras, will always add to a car’s value.
Market Demand: A car’s market demand is also constantly fluctuating due to buyer interest, market trends, and seasons. Older and damaged vehicles can yield a good offer if demand is up for parts resales, or scrap if the parts aren’t suitable for resale.
Fuel Efficiency: Fuel efficiency is also a key factor in a vehicle’s market value, especially given how volatile fuel prices have been.
Color: Standard popular colors generally have high interest among buyers.
External Modifications: External modifications like custom paint, custom wraps, and body kits will attract some buyers, but can be devalued to price based on market and buyers preference. Some buyers find value in creativity; however, in some cases, other buyers may not feel comfortable with excessively modified external aesthetics or the potential need for servicing or repairs.
Wreckers determine a vehicle’s value based on several contributing factors. They choose what parts and materials can be reused and recycled. Factors such as the age of the car, how many kilometers it’s done, the mechanical condition, wear and tear, and if the parts are in demand. Even a damaged vehicle can retain value based on its recyclable materials, even if the parts aren’t in working condition.
Many car owners in New Zealand use services like cash for cars to turn their unwanted or damaged car into cash quickly and responsibly, while also ensuring usable parts are recycled.
The following are some tips that can help increase the value of almost any car.
Service history: Keep a history of services and repair receipts where possible. This will really ensure the buyer knows exactly what condition the car is in.
Keep it clean: Keep your car clean and looking good. A clean car inside and out attracts a broader audience. Regular washes, waxes, and even vacuuming can make a huge difference.
Minor repairs: Fixing the minor things, like a cracked headlight or a scratch, will only make your car more desirable.
Have good photos: If you’re selling online, high-quality images are important. Click multiple pictures from different angles, both inside and outside, to attract more buyers.
You can begin by considering the age and condition of your vehicle, as well as the demand for your make & model. There are some online tools and car valuation websites that use these factors to provide estimates, and then you can compare those values to your local market by searching for other vehicles in the area.
Selling a damaged car privately can take more time and effort due to the limited number of buyers for damaged vehicles. If your vehicle is in better condition, consider getting it repaired before deciding to sell privately.
Yes. Buyers and dealers are afraid of accident cars even after proper repairs, due to the possibility of serious hidden damage and future repairs.
Not always. While higher mileage usually decreases resale value, other factors like maintenance history, condition, and demand for the model can ignore this effect. Even high-mileage cars can have valuable parts, which makes them worthwhile for wreckers.
A well-maintained vehicle will always have more value in the market. Regular servicing, repairs, and a clean record attract more buyers.
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