Vehicle valuation is a step that is all too often overlooked. Value isn’t always easy to predict because some cars can depreciate faster than others. If you’re selling a car you want to get the most for it, while buyers naturally want the best price and are always searching for a bargain.
The cost of buying a used car has risen significantly over the last two years. The ongoing disruptions to the industry due to Covid and supply chain problems mean used cars are not losing their value as fast as they usually do.
Buying
Relatively new vehicles are easier to value, especially with an online tool such as the DRIVEN Car Value Calculator or AA Vehicle Valuation. While some of these cars won’t cost as much as buying a new vehicle, they may still come with a fairly large asking price. An online vehicle valuation report is a good way to ensure you’re paying the right amount for that specific car. Visit aa.co.nz/valuations to learn more.
When you’re looking to buy a classic vehicle, do your homework. Typically, these vehicles can be very difficult to value, and it is wise to seek help from an independent mechanical expert.
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Selling
When you are ready to upgrade your ride and you want to put up an online advertisement for your current car, you need to know what to sell it for or what to settle for as a trade-in offer.
Finding the right price is incredibly important. Set it too low and you risk losing money; you could also alienate buyers who suspect there is something wrong with the vehicle. Conversely, setting your price expectation too high can put off potential buyers, and also waste time, especially if you have to sell your vehicle in a set timeframe.
Insurance
Insuring your vehicle for the correct “agreed value” allows to you replace it if the worst should happen. The agreed value is the amount you will receive if your vehicle in the event of a total loss, excluding the excess and outstanding premiums. It’s vital to get it right.
If you have a classic or particularly rare car, insurers may also ask for a valuation certificate from an expert.
If you wish to insure your vehicle for more than it’s worth, this can affect your premium. Agree on a price that’s less than it’s worth, and you may find that if your vehicle ever gets written off or stolen, you may not get enough to replace it with a vehicle of the same specifications.
Bear in mind that you’ll probably need to review your agreed value every year when your policy is due for renewal, to ensure it’s always up to date. This is particularly important due to the price fluctuations resulting from current disruptions to supply.
Regular maintenance
Taking the maintenance of your vehicle into consideration is also worthwhile as cars that have been well maintained will hold their value for longer. Maximise the lifespan and value of your vehicle with regular servicing at AA Auto Centre. Our fully qualified mechanics can service any make or model vehicle with the latest equipment. Visit aa.co.nz/autocentre for more information.