Vehicle Value - How To Purchase A Quality Second-Hand Vehicle
We’ve all heard one too many people say, a vehicle loses its value the minute it's driven out of the car dealership. And while that’s true, some vehicles have maintained their value long after being purchased. How have they done it? In this guide, we will show you how to view and purchase a quality used vehicle and how to spot value for money.
Buying a car is a financial commitment for the next five to six years, which means arming yourself with the necessary information to make a good buying decision is critical. This is important because of the financial and personal implications should the fine print not be thoroughly read or understood.
Here are a few tips for you to get the best
Doing Your Homework
It's important to do research before going out to view vehicles. Once, that has been done, look at the comparative prices of the vehicle you are interested in. The brand, model, demand, and popularity will help you to understand its pricing and reliability. And more importantly, its maintenance, affordability, and lifespan.
Websites like Auto Pedigree will give you a clear understanding of the vehicle’s full specs which help to understand why they are priced in that range. Its mileage, year, and engine capacity will be some of the determining factors to look out for. A low mileage vehicle will always be a preferred choice for reasons because of its possible well upkeep and lack of wear and tear. These will be included in the service plan, maintenance, and accident history report.
Additional modifications such as speakers, exhausts, or even re-spraying, tend to lower the value of the vehicle as opposed to increasing it. Be mindful that purchasing a modified vehicle will mean a possible initial value decrease when re-selling it at a later stage. This is because modifications are made to an individual’s preference and it may not suit the next person.
So, it's best to look for vehicles that are close to the original manufacturer's features and detail as possible. Here is what you look for:
Check The Car Mileage
The higher the mileage, the more wear and tear you are likely to experience. The mileage of a vehicle is crucial as this is one of the determining factors in its retail price. As any motorist will attest, a high mileage vehicle tends to be an expensive exercise in the long run. This is due to the vehicle’s maintenance and overall upkeep. A well serviced and maintained vehicle is less likely to cause issues and keep its value.
With aftermarket modifications, these features tend to lower the value of the vehicle. This is largely based on personal preferences. One might not appreciate a boot filled with speakers while another would prefer a double exhaust. When looking for your quality used vehicle steer towards original features that are standard in the brand or model you are interested in. As well as the colour of the vehicle. According to many dealerships, white and silver are considered to be the safest colours when it comes to vehicle value.
The Retail Price
This is the dealership price of the vehicle excluding extras. This price has considered the vehicle’s brand, model, year, mileage, colour, and other vehicle specs that contribute to its overall value. Much of a car’s retail value is determined by its popularity and demand.
Market Or Trade In Price
These are determined when a vehicle is traded in and the assessment of its condition puts it in line with its market value. The price is usually lower than the retail value. This is not to be confused with depreciation. A vehicle depreciates due to many factors such as the lack of upkeep in vehicle maintenance, wear and tear of vehicle parts as well as lack of regular servicing. All these factors contribute to the depreciation of the vehicle’s value. Its market value however is its selling price in the market.
Now that we have armed you with enough information to view vehicles and ask the right questions, you can start your vehicle journey with confidence.