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If you’re looking to sell your car or simply curious about its current value, understanding how much your car is worth is essential. Determining your car's value involves considering various factors, such as its make, model, age, condition and market demand.
In Savvy’s comprehensive guide, you can delve into the key aspects that influence car valuation in Australia, providing you with valuable insights to help you get the most accurate estimate of your car's worth. Read on to find out more!
What factors determine how much my car is worth?
There are many variables that go into determining the value of your vehicle. These can include:
Age and distance driven
The age of a car and the kilometres on the odometer are two crucial factors which significantly impact its value. As a general rule, the older the car and the higher the kilometres driven, the lower its worth will be. High-usage cars may have more wear and tear, reducing their market appeal. Conversely, newer cars with lower mileage tend to be more desirable, which can positively affect their value.
Make and model
The make and model of your car also play a significant role in its valuation. Some car brands and models are known for their reliability, performance and popularity, making them more sought after in the used car market. On the other hand, less well-known or outdated models may have lower demand, affecting their value. Researching how similar makes and models are valued in the current market can give you a better idea of your car's worth.
Condition of the vehicle
The overall condition of your car is another crucial factor in determining its worth. Cars in excellent condition, with minimal wear and tear, are likely to fetch a higher price compared to those with visible damage or mechanical issues. Regular maintenance and proper care can positively impact your car's value, making it important to keep up with routine servicing.
Repairs history
Even if your car is in good working condition now, a history of significant repairs can negatively impact its value. For example, a car that was previously written off is likely to be less valuable than one with a clean history.
Service history
A well-documented service history can add value to your car. A car that has been regularly serviced is more likely to attract a greater price than one that hasn’t. Keeping track of your car's service records and providing them to potential buyers can give them confidence in the car's reliability and condition.
Market demand and seasonality
Car valuation is also influenced by market demand and seasonality. High demand for specific car models can drive up their value, particularly if they’re in short supply, while low demand can result in lower prices. Additionally, factors like the time of year can affect car prices. For example, in Australia, cars are often sold at higher prices in the summer months compared to winter.
Upgrades and features
Certain upgrades and additional features can increase your car's value. Features such as leather seats, advanced infotainment systems, safety enhancements and alloy wheels can make your car more appealing to buyers, leading to a higher valuation.
Location and regional variation
Car values can vary depending on your location within Australia. Factors like local demand and availability in your state, city or town can influence car prices. It's essential to consider regional variations when estimating your car's worth.
Whether you’re selling to, or purchasing from, a dealer or private individual
The price of your car will also vary depending on who’s buying or selling the car. For instance, buying a car from a private seller may give you more wiggle room to negotiate on price than would be the case with a dealer, as there’s no set bottom line in place.
Which cars have the best resale value in Australia?
According to the Australian Automotive Dealer Association (AADA) and AutoGrab’s Automotive Insights Report, the cars with the highest retained value in February 2024 were as follows:
2–4 years old
| Passenger cars | Average retained value | SUVs | Average retained value |
|---|---|---|---|
|
Toyota 86 |
106.9% |
Suzuki Jimny |
128.9% |
|
Honda Jazz |
105.1% |
Toyota Landcruiser |
107.4% |
|
Toyota Yaris |
104.6% |
Toyota Yaris Cross |
103.3% |
|
Kia Picanto |
99.4% |
Land Rover Defender |
100.7% |
|
Ford Mustang |
97.8% |
Toyota RAV4 |
100.7% |
5–7 years old
| Passenger cars | Average retained value | SUVs | Average retained value |
|---|---|---|---|
|
Mitsubishi Mirage |
106.5% |
Toyota Landcruiser |
91.5% |
|
Toyota Yaris |
94.8% |
MG ZS |
86.3% |
|
Toyota Prius C |
93.5% |
Suzuki Ignis |
86.0% |
|
Honda Jazz |
88.0% |
Jeep Wrangler |
84.1% |
|
Kia Picanto |
86.7% |
Nissan Patrol |
82.1% |
How can I get my car valued?
There are several methods of valuing your vehicle in Australia, including the following:
- Online valuation tools: many websites and car valuation platforms offer free online tools that allow you to enter your car's details, such as make, model, year, mileage and condition. These tools use algorithms and market data to provide you with an estimated value. While these tools can give you a rough idea, keep in mind that they may not consider all specific factors that could affect your car's worth.
- Professional valuation services:Â for a more accurate and personalised car valuation, you may wish to consider seeking the services of a professional valuer or automotive expert. These experts have in-depth knowledge of the used car market and can thoroughly assess your car's condition, history and market demand to provide you with a more precise estimate.
- Dealership appraisal: if you’re looking to trade in or sell your car to a dealership, they often offer appraisal services. This typically involves bringing your car to the dealership and having their trained staff inspect your vehicle to provide you with an offer.
How can I increase my car’s value?
There are two main approaches to increasing the value of your car: improving its condition and improving its marketability. Here are some tips for each:
Improving your car's condition:
- Regular maintenance:Â sticking to the manufacturer's recommended service schedule shows potential buyers you've taken good care of the vehicle. Keep a record of all maintenance performed.
- Fix any mechanical issues:Â address any problems, such as leaks, strange noises, warning lights and malfunctioning features.
- Fix cosmetic flaws:Â fix minor scratches and dents to improve the overall look of your car.
- Keep it clean: clean your car inside and out, addressing stains and lingering odours.Â
Enhancing your car's marketability:
- Know your car's value:Â research the fair market value of your car in its current condition.
- Write a compelling ad:Â give a detailed description that accurately reflects your car's condition and highlights its best features, and post clear pictures.
- Highlight desirable features:Â play up any features that make your car stand out, such as fuel efficiency, safety ratings, sunroof or entertainment system.
- Consider timing: the time of year can affect the selling price. Cars tend to be in higher demand in the spring and summer – and avoid selling at end of financial year (EOFY) sales.
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