In the luxury automobile sector, the value of the vehicle is one of the most important factors. Motorists obsess over the value of elite automobiles for a few different reasons: the higher the value the more of a status symbol the car is, sellers look for accurate valuations in order to get the right price for the car and buyers do not want to overpay.
Accurate Prices for Expensive Cars
Vehicle value can be extremely challenging when it comes to expensive or unique cars, such as used BMWs. An incorrect value could be a huge sum due to the amount of money involved – this is not so much of an issue with averagely priced automobiles. So, what are the key factors that influence value with luxury cars?
Age – Depreciation is a key factor as the older the car the lower the price. Certain brands and models depreciate at different rates and many classics depreciate slowly due to the high demand.
Condition – Unsurprisingly, the condition is one of the most important aspects that determines the value. Motorists do not want to pay large sums for an automobile that has dents, dings and a damaged interior. The impact condition has can be difficult to gauge as every automobile is in a different condition.
Manufacturer – Prestigious brands will hold their value and remain in demand. Additionally, rare cars are more likely to retain their value than volume brands/models. This is good news for owners of unique car models.
Mileage – Similar to condition, a motorist will find a lesser travelled vehicle more appealing and will pay more for a car with low mileage.
Previous Owners – Motorists also prefer cars which have had fewer owners. A car with many owners also suggests that there is something faulty or undesirable about the vehicle.
Service History – Automobiles with a full-service history will be more reliable and maintained properly. This can have a huge impact on the value.
Spec – The higher the specification, the greater the value.
The above all factor into a valuation with some aspects weighing in more than others, but you must also consider the market value. The industry will determine a figure for a particular model, with many of the above aspects either increasing or decreasing this figure.
This information is extremely valuable to owners of luxury or unique automobiles as it also tells you how to maintain the value of your car. This is important if you plan to sell the automobile down the line and avoid a large financial hit. You can maintain the value by keeping the mileage down, maintaining the car and getting it serviced promptly and keeping a record of service history. You can also maintain value by avoiding modifications, cleaning regularly and waxing the car a few times a year. Essentially, you need to properly look after the automobile and make it as desirable as possible.
Tools for Valuations
So, how do you go about valuing your car? Whether it is just for knowledge or if you are buying or selling, there are a few great ways to get an accurate figure.
The most common method is to search for the model, make and year on a classifieds website. You can then take an average of the results to reach a fair sum. This is a quick and easy method, but it does not factor in the condition and you may struggle if you own a unique car.
Another popular method is to ask a used car dealership what their value would be. This can be helpful as an estimate, but should not be relied upon as dealerships will often low-ball the offer to cover their own margins.
Instant Price Guide
Many websites offer an instant price guide which is a good method for obtaining a rough figure very quickly. Typically, you will provide them with details like the car model, make, year, mileage and condition and they then return a quick valuation.
The motor trade relies heavily on used-car price guides from places like this website to set their prices. This provides you with current, historical and residual values and industry professionals provide up-to-date pricing by constantly analyzing trends and movement in the market. Motor trade professionals use these companies to precisely value their entire fleet, as well as manage risk and improve sales.
If you are buying or selling a luxury or rare automobile, it is recommended that you use a combination of the above methods to reach a fair estimate. This figure can then be negotiated until the buyer and seller are both happy.
Car valuation can be incredibly complex and especially when it comes to expensive, rare and luxury models. There are various factors that must be considered and no two cars are the same. With a little hard work and patience, establishing the value can be achieved whether it is for buying/selling or simply for your own knowledge.
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