Before selling your car, it is very important to determine the Fair Market Price of the vehicle. Many car owners have used the car price calculator for assessing the car price correctly before selling. The fair market value calculates the vehicle’s worth in the private market or for tax purposes.
Steps to Determine Fair Market Price of Used Car
The following steps will help you to calculate the fair market value of your car and here are the factors that affect the market price of used car:
- You can easily calculate the fair market value of your car with the help of an experienced new and second-hand car dealer online. Just access the website and follow the direction to get an idea of the fair market value of your car.
- You will be asked to provide some basic information such as model type, date of manufacturing that will help them to calculate the fair market value accurately.
- Look at the odometer on your car, it will display the car’s mileage. You need to provide this information to the website. Simply speaking, cars with lower mileage will worth more than those with higher mileage.
- Sometimes, you are asked about your location or city name, as the fair value may change depending on your location. Fair market value also depends on the supply and demand of cars in your city that is why the website may seek this information.
- Write a detailed report about the car options and the accessories or amenities. Many of these include options from the driver’s perspective such as power windows, locks, mirrors and so on. You can continue to add about the extra music system, sunroof, interior with a leather finish or any other guidance system.
- Be honest about the condition of your car in terms of interior, exterior and mechanical conditions. Choose among the labels provided to you by the website and rate your car condition as very good, good, poor and so on.
The FMV not only gives the seller of the car an estimated value of the car but also helps the prospected buyer in second hand car valuation.
What is a Used Car Valuation?
The value of the car starts depreciating right from the moment it is bought and will continue to depreciate with every passing year. In fact, in the first year itself, the value of the car depreciates by 20% of its initial value. The model of the car, kilometers driven, overall condition and other factors further affect the depreciation of the car. Used car valuation online is an effective tool that takes all such variables into consideration to calculate the current value of the car.
Buy a used car keeping in mind some core factors:
Buying a second-hand or used car can be a smart financial move but any impulsive decision can ruin all your plans. So, the following are certain factors that will help you to judge the fair market value of the vehicle:
Know what you want
Before you start browsing for online used cars, take time to get a clear picture of what are your expectations from the car you want to buy. Like the number of seats, size of the car, any particular model or any certain feature you cannot live without.
Set your budget
Setting a budget for yourself will narrow your area of research. You can check used car price online to get a better idea of how much you have to pay for what you want.
You should see the car history of a particular car before buying it. Car history gives you a brief back story of the vehicle like the number of times it has been sold before, loan if any, whether the car is blacklisted or not and so on.
You need to get the car inspected by a trustworthy mechanic to get a clear report about the health of the car.
Once, you check these factors, you will be able to judge whether the used car price is fair or not. The online market of a second-hand car has narrowed the gap between the seller and buyer, as it has increased transparency and made stress-free and convenient. Moreover, experts are always available for your assistance so that you never miss the best deals.
Droom is an automobile e-commerce platform offering a 21st-century automotive buying experience online with its four value pillars including trust, selection, low price, and convenience second to none. It offers 250k+ vehicles online in 1,100 cities — both used and new. Droom deals in buying and selling cars, 2-wheelers, and other vehicles too. It is an AI and data science-driven platform designed with the best ecosystem tools. Here, we have a team of auto-experts and auto enthusiasts who are dedicated to covering every sphere of the auto industry by simplifying the procedure of buying and selling with Unified Droom Experience. To know more, click here.