So how exactly does the motor trade come to a convincing value for a used car? Do you know the important factors employed to produce a credible car valuation?

When exploring the price data supplied by used car price guides (whether industry only or otherwise) you will typically be presented with 3 unique price variations.

Dealer or Retail Price will be the price you are very likely to pay if purchasing from a new or used car dealer and is the basic retail or actual selling price. This price probably will be modified for mileage and condition to more realistically represent the cars market worth.

Trade Price is the basic value whenever a trade purchaser buys an individual unit for retail sale and is the amount (modified for mileage and condition as before) you are very likely to be given by a dealer should you part-exchange your vehicle.

Private Sale Price is the price in the middle. A private vendor will wish to make more than the dealer “trade” price and the private buyer won’t wish to pay the retail uplift at a dealer (which would certainly incorporate value added extras and reassurance)

Providing a car valuation is certainly not an exact science and, needless to say, each used car is unique. It is that originality which lead to sometimes hugely different price estimates. Following is a summary of many of the facets of a used cars overall condition that may have an effect on the ultimate price offered or paid out.

Mileage

A typical car is commonly assumed to have covered 12,000 miles per year for the 1st 3 years of its life, 8,000 for the subsequent three and 6,000 for the next. As a consequence a 9 year old car with “average” mileage would have covered 78,000 miles.

General

The car needs to be in a condition that is commensurate with its age and mileage and possess a current MOT certificate.

Service History

The vehicleshould have been serviced in compliance with the manufacturers recommended schedules up to 3 years and subsequently there needs to be adequate service history to attest to the recorded mileage being genuine.

Engine.

The engine will need to be free from unneccessary noise, working correctly and be inside the legal emission limits. There should be no damage or leakage with no evidence of excessive wear.

Cooling System.

Cooling fans need to be operating normally and the system should be free from leakages or damage.

Chassis Members and Sub Frames.

There needs to be no evidence of repairs, rust or wear and they should be free from damage defects and distortion. The mountings and joints should all be sound.

Transmission.

The transmission system will need to be free from leakages and not require repair or adjustment.

Suspension and Steering.

Power steering needs to be free of excessive noise and no leakage. There should be no evidence of wear or damage and all mountings should be free of damage or wear.

Tyres.

Must have at least 3mm of tread and must conform to manufacture and usage regulations.

Electrical.

Electrical units need to be free from malfunction and show no obvious indications of tampering.

Bodywork.

Needs to be free from damage and rust. The paintwork needs to be sound and well taken care of and all bodywork fixtures and fittings present and freed from damage.

Interior,

The interior condition of the vehicle needs to be commensurate with age and mileage, freed from damage and with no evidence of repairs having been performed.

Standard Equipment.

All standard equipment fitted to the vehicle needs to be in one piece and in full operating condition.

The growth and ubiquity of the net has significantly enhanced the accessibility of information on used cars and their value. It was previously the case that this information was only ever accessible by the “trade” through professional publications but now you will find numerous sources of information for pricing used cars. Multiple sources of data means, not surprisingly, that the values made available via different sources usually tend not to concur with each other.

This is because each data source acquires their information from different places and then produces their unique determination of that data. The easiest wayfor a private car buyer or vendor to find out an satisfactory price for a used vehicle is to cross-check their information with numerous sources. This will give you as a seller a price that best represents the true market value of your vehicle and as a buyer will give you the price you shouldreasonablyexpect to pay for your next car.