The Process Behind Car Valuations and How to Use Them

When it comes to buying or selling a used car, one of the most important processes to undertake is a car valuation. This determines a fair price for the vehicle so that the seller does not undercharge, or the buyer can make sure that they are not getting ripped off. No two cars have the same price due to age, mileage, condition etc, so it is important that a fair valuation is reached so that a price can be agreed.

Methods of Pricing

There are a few different ways that a vehicle valuation can be obtained. You can browse the classifieds to look for a vehicle of the same make, model and age which will give you a good idea, but this can be time-consuming and does not factor in condition. Alternatively, you can use a car valuation tool which is often free from dealerships, but beware that the price will be inflated and again condition is not factored in. The best method is to obtain a valuation from Cap HPI as this is how dealership obtains their figures.

Accurate Figures

A valuation from Cap HPI utilizes a team that carefully scrutinize trends and movement in the market and work closely with industry experts to collect and analyze data every single week. They can then provide an entirely accurate and unique market value depending on who is buying or selling – these include retail, private sale, trade-in and forecourt prices. In addition to this, these checks can also reveal the total cost of ownership (fuel, tax, insurance etc.) and provide future values that factor in depreciation (this is key for dealerships that may not be selling for a while).

How to Use Valuations

These valuations enable either a buyer or seller to establish a fair price no matter where or who they are selling to. When selling, it is important to show where you obtained your figure from so that you can prove that you are a trustworthy seller. Conversely, a buyer can use this tool to show that they have done their research and know what a fair asking price is. It may come down to negotiating, but it is an excellent way to establish a starting point no matter which side of the process you are on. Therefore, a vehicle valuation from Cap HPI should always be carried out prior to placing the car on the market if you are a buyer and before you begin negotiating a price if you are a seller.

Establishing a fair price for a used car can be tricky as there are so many factors to consider, including brand, model, age, mileage, condition and then various market factors. The only fair way to reach a fair price is with a vehicle valuation which will factor all of this in to establish an accurate figure.

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