Valuation Of Used Cars For Loan Or Sale

Setting a price for a car is not easy, both for the seller and the buyer. Completely different from a new car, the selling price of an old car is influenced by many factors such as the number of kilometers traveled, accidents and hydrographs ... 

There are many ways you can get the best price for an old car. Here are some common ones that you can consult before deciding to buy a car

1. Reference on online car buying and selling platforms

E-commerce platforms are very evolving right now, so you can search for a selling price for a similar model you are planning to buy or sell. Existing websites have a very specific and detailed arrangement, from model to model, manual or automatic transmission, and even filter the color of the car similar to the car intended to buy and sell.
After filtering out similar models, you filter out the price from high to low to find the average price. Next, you will find a car with the same number of kilometers or 5000 km difference compared to your car, from which you will have an approximate and reasonable price for both buyers and sellers.

2. Get used car dealerships or dealers for pricing

You can also take the model to the dealership or check in to see the current selling price. Usually, these places will charge 10 - 15% lower than the actual value of the car. Therefore, we can add this difference to the selling price of the car. In addition, you should also consult prices from 2-3 stores or more for the best price.
Besides private used car shops, you can also ask your authorized dealer to get the exact price for your car. In this case you should only add 10-20 million to the selling price is appropriate.

3. Pricing formula by year of use

According to international practice, a car will lose 10% of its value compared to the previous year. However, with the first year, the car will often depreciate more than the remaining years. For Japanese cars, especially Toyota, the depreciation value is about 15%. For the remaining models, depreciation is about 20-25%.

Example: The rolling price of Toyota Vios 1.5E MT 2018 is about 579 million VND.
- After 1 year of use, the reference price will be from 579 x (1 - 25%) = 434 million VND or more, depending on the number of km traveled.
- From the second year, the reference selling price will be from 434 x (1 - 10%) = 390 million VND.

Selling price calculated this way is relatively more, due to fluctuations in the number of kilometers and equipment upgrades for the vehicle if any. However, we can increase or decrease 5 - 10% depending on the km variable and upgraded equipment.

4. Thanks to someone experienced

As a last resort, you should ask someone who has experience using this car, or has bought and sold used cars to get a look at the car and have a suitable price. However, not everyone has a relationship available and can be reached on.
Currently social networks like facebook also have groups that use the car that you intend to buy or sell. You can ask members for advice or pricing to help, which will easily have a basis for you to set the purchase price for the car.

Buying a used car is the choice of many people, especially for those who do not have the economic conditions to buy a new, modern and comfortable car. However, these cars are still much better than their new peers in more spacious spaces, and superior amenities. Even so, we also need to consider it carefully before making a decision. With the above suggestions, I wish you will have an appropriate purchase price and a favorable cooperation for both parties.