Here’s a list of factors that determine a car’s market value
Like every other machinery, even automobiles face a depreciation in their market value. A term known as the ‘car book value’ represents the present market value of your car. The moment you start using something, the value depreciates. But there is no specific rate of depreciation in the value, as it varies from car to car and vehicle to vehicle. Mainly because of the difference in demand, it is highly probable that two different cars of the same segment and same price might have a different rate of depreciation in their market value. Therefore, determining the current market value of an automobile is not as simple as it may seem to be. There are a lot of contributing factors that need to be assessed to determine a fair price of depreciation.
In this competitive market of automobiles, there are various car companies a buyer can choose from before actually purchasing a car. Each and every car company has a reputation in the market. There are several car companies which are known for their safety, some for their quality and durability, some for their low maintenance cost. But, a car company which provides you all in one is out rightly the best deal. These factors are not only important for you to consider at the time of purchasing a new car but also at the time of buying a used car. Car companies which provide you better performance, durability and safety tend to enjoy higher demand, even in case of a used cars. Which is why some automobile companies have a higher car book value than cars from other automobile companies.
There are several research companies and market analysts which compare different cars and provides a comparative analysis. In short, the rate at which you are going to sell a used car, or buy a used car is determined by the market value of the car. A higher market value of a car is a great news for the seller but not for the buyer. Similarly, for a person buying a used car would be looking for a lower market value