More than likely you have a figure in your head – maybe it’s what you paid for the car, maybe more but have you ever actually thought about what the value of your car is?
The first step in getting an accurate idea of what your car is worth is to look online. There are plenty of websites that advertise cars for sale and looking for cars similar to yours will give you an idea of the price range you should be looking at but keep in mind most people will sell a car for less than the advertised price so it might be better to consider the lower end of the scale as your actual value.
It’s important to take engine, mileage, condition and extras into account. Obviously the age of the car is important to most but the mileage and condition will tell a more accurate story of how hard or easy a life it has had.
After taking the obvious details of the car into account the actual value can be very subjective. No two cars are worth the same – some colours will be more appealing, some extras are “must have” and fuel type and engine size is very much personal choice – For example on a lower value car a new set of tyres or a fully equipped stereo can make a huge difference to the price!
But why do I need to know my cars value?
Most of the time the value of your car won’t matter – but when it’s time to sell it’s important that you’re aware of what it’s worth so you don’t let it go too cheaply but at the same time don’t turn a potential buyer away by asking too much.
You will also need to take actual value into consideration each year when renewing your insurance. Most insurance companies just take “market value” into account, with small allowances made for mileage and extras. There is no point in over insuring your car as they won’t give you more than market value – unless you have a policy with agreed valuation (please let me know if you find one!) and if you under insure it they won’t give you more than what you said it was worth.
In reality no matter what the market value is your car is only worth what someone else is willing to pay for it. It’s also important to consider the difference between what a car is worth and what it’s worth to you! If it’s not giving any trouble and suits your everyday needs a car can be priceless…..
8th September, 2015