Steps Involved In Calculating The Used Car Value:
For example, the car is well maintained for ten years and the approximate life of the car is 18,000 km for one year and its residual value of the vehicle after ten years will be around 180,000. The steps involved in calculating the used as well as old car valuation are as follows.
First you have to find the on-road price of the car and it should be original price.
Then find the residual value of the car after usage of ten years. To find the residual value you need to research on some online websites.
Calculate the depreciation per month by means of subtracting the residual value which is calculated, from the purchased value and divide it by the no. of months.
Then you have to calculate the depreciation per km and for that you have to divide the total depreciation calculated for 10 years of period by total kms which is 180,000.
You can get the present value by means of reducing the depreciation from original on-road value of the car.
Then you have to make adjustment regarding mileage. If there is any additional mileage when compared to the assumed usage which is normally 15,000 kms, then you have to decrease the value by means of excess depreciation. Or if the usage is below the normal range, then you can add up the value which is calculated by multiplying normal usage kms with the mileage depreciation.
The Other Factors That Are To Be Considered:
Here are some other factors which you have to consider after having a look on the used car or its record and the factors include the following.
The number of previous owners of the vehicle
It is also checked whether the owner or the dealer is selling the car.
The exterior and interior condition of the used car will be checked to know whether it is in a good condition or not. In some cases, the odometer shows only 30 to 40 kms but it will look that it ran for more than 150K kms.
It is also checked whether the car remaining in its originality. So make sure that the OEM wiring aren’t altered while adding extra fittings like lights, DVD player, horns, etc,
The mileage should be authenticated with the service records.
The accidental history of the car is very important in second hand car valuation.
The condition of the body, tires, power train, etc will be checked.
Popularity as well as waiting period of the car will be noted.
These are the important things to be considered while calculating the Used Car Valuation and always remember these while valuating your car. You car will get better value if you follow these conditions in a right way. Top Searches - Trending Searches - New Articles - Top Articles - Trending Articles - Featured Articles - Top Members
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