The demand for second-hand cars has increased dramatically as many people are buying or planning to buy their own cars to avoid public transport due to the ongoing COVID-19 pandemic. If you plan to sell your old car to fill the gap in your cash flow or to upgrade to a new car, now may be a great time.
There are several options for selling the car. You can connect with your local dealer or visit portals that help you buy and sell cars online. Experts advise going through regulated distributors like Internet portals because they provide security and convenience. Organized merchants, including online portals, conduct checks, and verify buyer documents. This helps reduce the chances that the car will be sold to someone using it for illegal purposes, said Gaurav Vangaal, associate director, IHS Markit, a global information provider.
We tell you what factors buyers or internet portals take into consideration when buying a car, to help you negotiate a better price.
Most of these portals have online calculators to come up with the expected price you could get for your car, based on certain factors.
Age of the car: One of the most important factors is the age of the vehicle. The value of the car depreciates the moment it is purchased and its value depreciates each year. This is called age depreciation. “When it comes to ageing, a car’s value declines at a variable rate over its useful life.” Umesh Hora, CEO of Used Car Business, CarDekho Group, an online portal for buying and selling cars, said: “It can range from 10% to 25% per year, depending on the make, model and variant. And other factors of supply and demand. ”The shorter the useful life of the vehicle, the less consumption will be charged, and the higher the value of the car.
Others: In addition to age, there are several other factors that influence the value of the vehicle said Gajendra Jangid, co-founder and chief marketing officer (CMO), said Cars24, a portal for buying and selling used cars online.
In-demand models are more likely to attract better prices. “There is a high demand for a few cars makes and models compared to others. For example, Maruti Swift and Hyundai i10. So you get a higher price quote for them. In terms of color, white is the most demand and requires a higher price, ” said Jangid.
The frequency of change in ownership also impacts the price of the car. The more ownership changes, the lower will be the price.
The car that has been driven more is likely to attract lower prices compared to a car that has driven fewer kilometers. “The property reading and the odometer (which measures the distance traveled) can affect the price of the vehicle by up to 10% and the cost of reconditioning a used vehicle in paint, tires, engine, etc. can be up to 7-8 % of the price of the car. However, it can vary. The level of impact between regions, model, variable and other factors of supply and demand, “said Hora.
Cars with no accident history may also be priced better because they may be in better condition.
Insurance: If you don’t renew your car insurance at the time of sale, the car will likely charge a lower price.
“An insured car could have higher sale value, so it is recommended to have at least third party insurance for your car. Many owners abandon their policy because they plan to sell their cars. This should be avoided,” said Animesh Das, head of the product strategy, ACKO General Insurance.
Things to keep in mind
The car in good condition, which has been regularly serviced from an authorized center, increases the value. “Full service at your authorized dealer will add new life to your car. Changing the oil filter, air filter, engine oil, gear oil, and air conditioning filter will help keep the car in top working condition which will ultimately gain more eyeballs,” said Hora.
It’s also best to remove dents or dents before the vehicle goes on sale. The cost of making such repairs may not be that high and will help you negotiate a better price with the dealer or buyer.
One of the most important things to consider when selling a vehicle is obtaining the proper documentation. “All documents related to the vehicle such as Certificate of Registration (RC), valid insurance, PUC certificate, service record, historical report, financial contract, and owner’s manual to further evaluate the vehicle,” Hora said.
Also, old cars may not be required. Experts say you get the best price when your car is three to five years old. While the average lifespan of a used car in India is five to seven years, the car gets the best value after about three to four years. After this age, the price of the car could go down faster and the car owner could pay a higher maintenance cost, “said Hora.
Before selling the car, don’t forget to compare the prices you get on different portals.