If you are looking to purchase second hand cars in Delhi or other cities, know that there are several factors that go into the resale values of these vehicles. This is something important that you should understand before venturing into any such purchase. It will help you get a picture of how used cars are priced and what goes into the valuation equation. You can thus negotiate better deals and understand whether the price for a used car is on the mark or higher/lower than expected. If you’re a seller, then you can understand how to price your car when you wish to sell it off as well.
Here’s a guide that you should use.
How to Determine the Valuation of a Used Car
Be it second hand cars in Delhi or other Indian cities, here’s how the resale value is determined:
1. Odometer Inspection
You should know that the resale value is naturally higher for cars that have travelled fewer kilometres in total. However, the type of usage also matters, as highway-driven cars may face less wear and tear compared to those used primarily in congested city traffic.
2. Age
If it is an older car, then its value will be lower as compared to a relatively newer car. This is the basic thumb rule behind the resale values of second hand cars in Delhi and other cities in India. However, rare vintage or classic cars may retain or even increase in value, depending on market demand.
3. Condition
The car should be in mint condition without damages and other mechanical/electrical problems to command better resale value in the market.
4. Service History
Values are also higher for cars that have a proper service history with full documentation records to assure the buyer about its maintenance and condition.
5. Make and Model
Some brands of cars are more popular than their counterparts. Reliable brands and models known for low maintenance costs, like Maruti Suzuki or Toyota, often have higher resale values. On the other hand, luxury cars may depreciate faster due to higher upkeep expenses.
6. Type of Body
Some types of car bodies are more coveted than other versions. For example, India is now seeing huge demand for SUVs in suburban and rural areas. But compact cars like hatchbacks may dominate urban markets due to parking and traffic constraints.
7. History of Damage
Any vehicle with a history of damages will naturally have a lower value in comparison to other cars, especially if the damages were extensive. However, cars with minor repairs, documented and completed at authorised service centres, may still retain reasonable value.
There are some other features that may also affect the resale values of second hand cars. These may include the colour of the car (minor factor) along with interior features and their condition. A well-maintained interior can fetch a higher price for a used car, while any external modifications may impact the resale value. High-quality, tasteful modifications like alloy wheels may enhance resale value, while poorly executed alterations can reduce it. At the same time, if a car has had several owners in the past, then the resale value may be lower. Single-owner cars command higher values in the market. Insured cars, especially those with comprehensive coverage, are also priced higher than ones whose insurance coverage has lapsed. Of course, market dynamics also play a role in determining the valuation of used cars, such as fuel type preferences (e.g., petrol, CNG, or electric vehicles), emission norms, and regional regulations. Check this list carefully and then venture to buy/sell a used car accordingly.
