If you have the necessary financial stability, buying or investing in an automobile can be a great idea. A lot of assets go up in value over time. But cars go down in value quickly, and thus the upward trend is not applicable when you plan to resell your used cars. Don’t know what to do with the old car? Want to know how to get a car appraised? Most people will end up negotiating with a private buyer. But you cannot simply enter into an agreement without knowing the actual worth if you wish to make decent bucks out of the car sale. That’s where the concept of car appraisals comes in.
Car appraisals are mandatory because they can make your car purchase and sell more affordable and legit process. Car appraisals are an excellent option for people who wish to sell their cars because you get the evaluation done by professional appraisers who estimate the current worth of your vehicle. If you don’t, get ready to lose a lot of money because the dealer will quickly lower the value of your car. On the contrary, when you buy a used car, car appraisals can again help you get a pre-owned car at an affordable price. Read on to gain an insight into the ways you can get your old cars appraised and related details associated with car appraisals:
wondering how to get a car appraised?
A car appraisal, also known as car evaluation, gives a car an estimated dollar value. There are a few times when you might want to get an evaluation:
When you want to know how much a car is worth when you want to buy, sell, or trade it.
To give a car a dollar value when it’s an asset in a divorce, bankruptcy, or will
Factors affecting car appraisals:
There are numerous factors that cause the value of a pre-owned car to fluctuate; here we pen down a few:
Manufacture year: The year in which a car model was manufactured is a significant factor in figuring out its current worth. The price of a used car is prone to be on the higher side when it is a recent purchase and ends up in the second-hand market. But the case may not always be the same because a lot depends on the demand and supply of old cars.
Mileage: If someone is planning to buy used cars, it means they face a financial strain and thus must be looking out for used cars that can offer decent mileage. This will help them save money that goes invested in fuel. If your cars are not in a state to give an average mileage, their value is prone to experience a price drop.
Demand: Demand is the base of the supply chain. If your used cars are not in demand and not popular, there are chances that you may not come across a good deal. And, even if you happen to hit a deal, the prices may be pretty low.
Brand and Type: The brand of a used car also plays a vital role in deciding its resale value. Dealers are more inclined toward branded cars because brands can search for high-paying customers in no time. Thus, popular car brands can be expected to be sold at a quick pace in comparison to cheaper brands. Also, people are more interested in buying sedans and SUVs over hatchbacks.
Condition: Last but not least, you need to make sure that the outside and inside of the car look good. A well-kept and maintained car will get you a better price than a car that has not been taken care of and is poorly maintained.
Future sales: A car that has a scope of being put back on sale and resold by the dealers in a quick span may earn you a better deal in comparison to old cars that are worth putting up for an auction.
How to get a car appraised?
If you’re buying, selling, or trading your car for a new one, you are more likely to use more than one method to figure out the actual worth of your car. There are many ways how you can get started with the same:
Guide books/valuation websites There are many websites that let old car users enter the details of the car, such as the make, trim level, model, and the year of manufacture of your car, as well as upgrades, mileage, where you live, and an estimate of the car’s condition. Once you enter all the information, you can get an instant idea of the book value in different situations, like trading it in at a dealership or selling it to a private party. You might probably use this method when you are planning to buy or sell an old car and want to find out the actual worth in the open market before you go to a dealer or put it up for sale yourself.
How to use the appraisal?
Once you get an idea about how much people in your area are paying for a car in a similar condition, you can use the information as a tool that proves handy for negotiating with the car dealer. You can also use this information to set the price of a car you’re selling. But remember that these estimates are just estimates and not a gospel that remains the same everywhere.
Dealership appraisal In the case of dealership valuation, a dealer may take a tour of your car and tell you a price that they can afford to pay for your old car. And, it is not necessary that you accept the very first offer that is given to you because the dealer may also try to take you down to the lowest price possible at the first instant. Also, be ready to answer as to why you are not satisfied with turning down the offer. Your research will help you negotiate better prices.This method is best suited when you plan to sell your car to another dealer and want to know what other dealers are paying in your area. Or you can also adopt this method when you simply plan to sell your car to a dealer if they are ready to pay a genuine price.To use dealership appraisal, You can compare the appraisal against the valuation of other dealers and consider seeking evaluation from multiple dealers. If you plan to visit a single dealer, you can barely negotiate because of a lack of knowledge of the actual worth of your car and may end up negotiating against yourself. Also, comparing these estimates with valuation guides is a good idea to ensure you’re getting a good value.
Lender appraisal
If you wish to finance a car outside a dealership, it’s always a good idea to reach out to the lenders to get an estimate. Usually, credit companies and banks include the evaluation of the car while working out the loan calculations.
You might choose this optionif you want to buy a car by seeking a loan from your bank or credit union. This can help you determine whether the price estimated by the lender company matches the original worth of your car. If the price, as mentioned by the lender, goes below the asking price, it is a red indicator.
How to use the appraisal?
When you happen to find out that the asking price of the car is greater than the original worth, you can use the information provided by the lender company to negotiate with the dealer. Either the dealer may lower the prices, or you may consider stepping back from signing the deal based on your own discretion.
Independent professional appraisal
In the case ofindependent appraisals, a professional appraiser takes a look at your car inside out and finds out information about the sale value of similar cars to work down the math of an offering price. You can consider this option if you are trading in a collectible car or need to find out the worth of a car to settle down a divorce, asset division, or bankruptcy.
How to use the appraisal
If you are planning to buy a collectible car, you can use independent professional appraisals to crack a better deal. You can also use such assessments to ensure that the price paid is worth the car you are planning to purchase.
Conclusion
We hope that this guide gives you a brief insight into how you can get your cars appraised and the factors that affect car appraisals. So, if you have an old car waiting for you to bid them goodbye, do not initiate the process without getting a car appraisal done in the first place. Car appraisals are the lifeblood of used car trade programs and can lay a huge impact on shelling out money. Get in touch with a professional car appraiser today to earn more bang for your buck!
Daniel “Dan” Jendrowski
Certified Public Auto Appraiser Diminish Value Experts B.C.A.A. & I.A.C.P.
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