There’s a lot to think about when you’re setting up a garage. If you plan on selling cars, as well as the paperwork and legal side of it, one of the most common challenges you’ll face is deciding upon the amount to sell the vehicle for.
So how do garages typically value their cars and how can you ensure you’re getting it right? Here you’ll discover some great tips and advice on how to carry out successful valuations.
Understanding depreciation value
If you’re selling used cars, the first thing you need to take into account is depreciation. Over the course of three years, it’s estimated most cars lose around 60% of their value. This is based upon an average mileage and should be used as a rough guide only. So, if you’re looking to correctly value a car, you’re going to need to get clued up on depreciation and the numerous factors which contribute to a drop in price.
Make use of valuation tools
You’re not completely on your own when it comes to valuing a vehicle. There are plenty of great tools out there as well as services which can help you find the correct valuation. Take CAP for example. The company constantly monitors the markets for any change in value and uses their combined 400 years of experience to provide the most accurate service.
You think dealerships use their own estimations to value their vehicles? Guess again! They turn to reliable and accurate tools to help.
Pay attention to unusual buying trends
Did you know the time of year you sell the vehicle and where you are selling it also makes a difference to its value?
Just like with house prices, car value teds to be higher in different parts of the UK. For example, generally speaking cars sold in the south tend to be more expensive than the ones in the north of the country.
Similarly, certain types of cars sell for more during different times of the year. So, a convertible for example, would bring in a higher price during spring and summer than it would in autumn or winter.
Overall, it can be difficult trying to decide how much each car is worth. However, the tips above can help and it also pays to do as much research as possible into the models you’re trying to sell to see how much dealerships and other garages are selling them for.