If you’re looking to buy or sell a used vehicle, a valuation can prove extremely useful. Looking into numerous factors, valuations offer a unique insight into the current value of the vehicle.
Not sure what to expect from the valuation process? Here, you’ll discover which factors affect vehicle valuations.
Mileage and condition
One of the main factors which impacts a car’s valuation is mileage. How many miles a vehicle has clocked up can make a significant difference to how much the car can be sold for. The fewer the miles the car has done, the better value it’s going to offer.
The average mileage clocked up is between 12,000 to 15,000 miles a year. So, if the vehicle has done less than 12,000 miles it will be considered low-mileage. A vehicle which has done over 15,000 miles in a year will be considered high-mileage.
Similarly, the condition of the vehicle will play a large role in its valuation. Has it been well-looked after? If there have been any modifications added to the vehicle then this can also reduce its value, such as alloy wheels and a new stereo system.
Current market value
Another thing that a valuation looks at is current market value. If the model is in high demand, it’s going to bring a much higher value than a model which isn’t as popular. The state of the economy is also going to have an impact on current prices, as will the colour of the vehicle.
One of the most important factors a valuation from a company such as CAP HPI looks into, is the service history of the vehicle. How well has the vehicle been maintained and has it had any major repair work done to it? The MOT history will also show whether there have been any issues which could impact the resale value of the car.
How many owners the car has had
Finally, how many owners the car has had will also play a role in the figures determined by the valuation. The less owners the car has had, the higher its resale value is going to be. If it’s been passed on to many different owners, it’s going to negatively impact the valuation results.
These are just some of the factors that influence a valuation. An important thing to remember too is that different companies may produce differing valuations. This is because some companies have access to higher levels of data than others. So, they can give a more comprehensive, and therefore more accurate valuation. For this reason, you should always make sure you’re getting a valuation from a reliable and well-known provider.