The used car valuation guide for dealerships
8 Apr 2024
The sale and purchase of a second-hand vehicle can be a complicated task if one is not clear about the actual value of the car in the market and the goals of our dealership. To avoid misunderstandings and obtain the best possible offer, it is essential to carry out an accurate assessment of the vehicle. In the following article, we provide a complete guide based on our experience on how to appraise a vehicle before buying or selling it.
Why appraise a car before selling or buying it?
It may seem obvious, but it is important to be clear about the reasons through which the market value of a vehicle is set before buying or selling it. Having this information will allow us to set a fair price for your potential buyers and fair for your business. Following this rule, it is very likely that many misunderstandings, unfavorable negotiations, or unnecessary economic losses can be avoided.
Moreover, having a clear idea of the value of your car will help you decide if it is worthwhile to carry out any repairs or improvements before selling it. In some cases, investing in certain repairs can significantly increase the value of the vehicle and result in a more profitable sale.
For example, repairing dents or changing worn brake pads will make the vehicle look in better condition both in photographs and in person, and will allow you to ask for a higher price for it.
What methods are there to appraise a car?
There are different methods you can use to appraise your car. Below, we present the most common:
Appraisal by a professional appraiser
A highly recommended option is to use the services of a professional appraiser or expert vehicle appraiser.
This expert will personally evaluate the condition of your vehicle and determine its current value based on various factors such as brand, model, age, mileage, and the mechanical and aesthetic conditions of the car.
Among the aspects that a professional appraiser analyzes are:
Condition of the bodywork: dents, scratches, corrosion
Tire wear
Operation of the engine, gearbox, and differential
Condition of the interior: upholstery, dashboard
Accessories and extra equipment
It is important to keep in mind that this service usually has an associated cost. However, the investment may be worthwhile if you want to obtain an accurate and reliable appraisal of your vehicle.
Online appraisal using digital tools
Currently, there are various specialized websites that offer free online appraisal services. These tools calculate the approximate value of the vehicle based on general data such as the brand, model, year of manufacture, and the number of kilometers driven.
Some examples of free websites to appraise cars online include:
There are also more professional digital tools that can be very helpful in appraising our vehicles:
While this method is quick and convenient, you should keep in mind that it does not take into account the specific condition of the vehicle or its particular characteristics. Therefore, the figure obtained should be taken only as an initial reference.
What factors determine the value of a second-hand car?
It is important to note that the value of a used vehicle is determined based on various factors and that each of these affects, in one way or another, the value of it. Below we explain the most important:
Age and mileage
The age of the car and the number of kilometers driven are two key factors when appraising a vehicle. In general, the older the vehicle and the higher the mileage, the lower the value of the car.
For example, a 2015 Seat León with 50,000 km will have a higher price than a 2010 Seat León with 150,000 km.
Physical and mechanical condition
The physical and mechanical condition of the vehicle also significantly influences its value. Possible damages or defects, both internal and external, can considerably reduce the appraisal.
Aspects such as dents in the bodywork, scratches in the paint, wear in the interior, or engine problems are penalized in the appraisal because they imply higher repair costs for the buyer.
Model, brand, and engine
The specific model, brand, and technical features of the vehicle are also relevant factors to consider during the appraisal.
It is not the same to appraise a diesel Seat León as a gasoline BMW series 3, or a small utility vehicle as a large SUV. The price and demand for each model in the market differ.
How to increase a car's valuation before selling it?
If you want to maximize the price of a vehicle for sale, there are certain measures you can take to increase its value. Although they are not always necessary or effective, we list them below:
Repair of defects
Repairing any visible damage or mechanical problem can significantly increase the final price of the vehicle. Remember that potential buyers will be willing to pay more for a car in good condition.
Some common repairs include:
Changing worn tires
Fixing dents and painting
Engine check and oil change
Replacing worn parts
Maintenance and fine-tuning
Carrying out a complete review and ensuring that all systems of the vehicle work correctly can be a big draw for buyers. A well-maintained car is synonymous with reliability and durability.
A general fine-tuning, changing fluids and filters, can enhance the valuation.
Cleaning and aesthetic care
The appearance of the car also matters. A thorough cleaning, both inside and outside, can make your vehicle look much more attractive and valuable.
In addition to washing, you can touch up small scratches with paint, wax the bodywork, or change stained upholstery.
How can Dealcar help you in the appraisal of your vehicles?
The proper appraisal of vehicles is a fundamental step in determining the profitability of a second-hand vehicle dealership, as failing to do so correctly exposes you to problems and misunderstandings. It is as easy and as difficult as buying cheap and selling dear. Although if it were easy, everyone would do it.
With Dealcar, you can centralize all the data of a vehicle in one place. From model data to the costs associated with its documentation. Having all this information centralized will allow you, as a dealership, to be clearer about how far you can go with your prices and how much profitability you have per car.
