Why It's Important To Check The Car Market Before Selling Your Car

September 15, 2021
Advice, Automotive

When you decide to sell your car, you usually have a good idea of the asking price. However, since many variables can affect the price, you should always research to discover if you might be missing something. The purpose of this post is to explain why conducting research is vital before placing your vehicle on the market and some techniques you can use to increase its value.

Why Is It So Important To Research The Market?

The car market has changed a lot in recent years. In order to sell your car, you need to understand the market and keep up with changes if you want to maximize its worth. In many cases, diligent research might uncover interesting facts that allow you to understand what the market is doing these days. For example, selling your vehicle as quickly as possible could be a wise decision if you want to take advantage of a bullish market. If, however, the price is too low, you may want to wait or invest some money in getting your car in the proper condition. The type of vehicle you own is also an intriguing factor to consider. According to DingGo car sale statistics, new car sales were down by over 13%, while sales of electric vehicles (EVs) shot up by almost 70%. This might indicate that you have a better chance of selling a used EV than a traditional one. Nonetheless, these figures only represent new cars and don’t consider all factors, such as the depreciation of EVs compared to conventionally powered vehicles. 

What Should You Be Looking For?

Because the primary purpose of your analysis is to get the highest possible price for your car, you must consider the age, depreciation rates, and a whole range of other factors.

Depreciation Rates

Vehicle depreciation is a term used to describe how much a vehicle loses in value over time. Cars depreciate over time since they are used up. This is where the concept of depreciation comes into play. Depreciation can be defined as the decrease in the value of a vehicle due to a range of determinants. There are many different ways to calculate car depreciation, which will also depend on the vehicle type. The most important thing here is that this should be the first thing you check when selling because it will tell you what the market rate is and help you gain a faster sale.

Photo by Nima Sarram on Unsplash

What Factors Influence Depreciation?

The most important factors that influence car depreciation are the age and mileage of the vehicle. However, there are various other factors at play, such as:

  • Supply and demand.
  • Current prices at auction.
  • Brand.
  • Location.
  • Engine type.
  • Fuel efficiency.
  • If the model has ever been recalled.

Which Locations Have The Best Resale Markets

Some states have a better market for used cars than others. However it isn’t only the market you are looking at, you should also consider the price. For example, the best place for a buyer to purchase a used vehicle is in Florida, as the price is typically 10% less than other states. However, as a seller, you want to get the highest price; therefore, you should be looking at which states have the highest resale value. In this case, it seems to be Portland, Oregon.

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How To Increase The Value Of Your Used Car

People always want to know that they are getting the best value for their money. If you are selling a used car, it is essential to ensure that you are not undervaluing your product.

Have The Correct Documentation

The documentation is the crucial part of the car’s sale. You have to be careful how you present the vehicle and the necessary information to be included in it. While some documents might not seem important at first, they can be crucial information for future buyers. For example, a title document is vital when it comes to selling the car on the market. It will help potential buyers find out that they are buying a car from someone who has been reported as stolen or that they don’t need insurance if they get into an accident soon after purchasing it. In essence, it gives buyers peace of mind.

Keep Your Maintenance Records Up To Date

It’s essential to have the correct maintenance documentation when selling your car. You can do this by having a well-written description of your car, pictures of your vehicle, and a good condition report. You should also have repair history, original window sticker or Vehicle Identification Number (VIN), accident reports, or any other damage that has been repaired on the vehicle. It’s essential to have all this information organized nicely, which will go a long way in making your car look more desirable.

Invest In Necessary Repairs

It is essential to do basic repairs on your car before selling, like replacing the oil and transmission fluid. This could give the person buying your car a much better deal because they can use the vehicle without having to spend money on maintenance or repairs. In addition to mechanical repairs, you might want to consider fixing superficial damages like dents and dings. Surface damage can drastically decrease the amount potential customers are willing to offer, and since these repairs are usually easy, they are worthwhile.

Spend Some Money On Upgrades

This point refers to functional upgrades rather than buying a new set of alloys or ICE systems! For example, you could have a rearview and dash cam installed. These things are becoming more desirable to have in a car. Furthermore, you might want to consider installing a new dashboard that includes options for Android Auto or Apple Carplay. Although these things might not bump up the price significantly, they would enable a faster sale.

If you’re planning on selling your car soon, it’s essential to check the car market before selling your vehicle. It will give you an idea of what customers are looking for and the market price for your model. This information will better place you to sell your car more efficiently and for the best price possible.

Featured Photo by Obi Onyeador on Unsplash