Archive for July 2012
Car Valuations: A Myth?
July 23, 2012 | 
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Short answer, no. But I will give you a long answer.
You can’t believe hard and fast in car valuations. There are certain factors you have to consider. Firstly and most often overlooked is the actual specific model of your car. Looking up Ford Taurus 2001 will get you a listing and give you information but there are so many models, with different features and all of these will have depreciated at different rates. Ensure that the car valuations tool you are using allows you to search by model and specific models at that.
Furthermore, there are certain parts of a car that depreciate at different rates, depending on the way you drive, where you drive and even who drives it. A car might have 200,000 miles on the clock but be in far better condition than another with the same miles. Car a could be 200,000 city miles and car b could have been taken across the country and off the beaten track. These are things you should know before buying based on a car valuation you have got off the internet.
That being said, car valuations are NOT a myth. It is very important to understand at least the average market price of a car before you buy or sell it for a variety of reasons.
When selling a car, underpricing it has the negative effect of making your potential customers suspicious. Customers will see the undervaluation as a reflection of the knowledge of the car you as the seller has, and without being able to actually see something superficial to cause it, will automatically assume it is a serious internal issue and you are trying to offload it cheap to avoid repairing. Obvious overpricing will just make people not want to buy it. As a buyer you’re going to be the one thinking like that too.
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