As a buyer, Orange Book Value(OBV) recommends that you keep the following points in mind before paying for the car you’ve set your eyes on. As a seller, it is your responsibility to ensure that you provide honest details about your car so that you don’t face any unnecessary conflicts after the sale. Honesty ensures that your baby is well taken care of by its new owner. Indian buyers love a good bargain, while sellers are normally too biased about the value of their vehicle. So how do we determine, not the best but the right value of the vehicle? Here’s a checklist.
The process of finding the right value for a used vehicle starts with its make. It is the same as buying a new vehicle, we look at the manufacturing company. Take Maruti Suzuki for example. The company leads the economy class vehicle market for a number of reasons, chief amongst them is availability and affordability of parts. The same would not apply for a company like Datsun, which competes with the former in the same market. For this purpose, you need help of a website with an algorithmic prowess that helps in getting the right price for your used vehicle.
The model variations within a single vehicle differ not only in features like fuel type and drive type, but also – and most importantly – by price. The value of your used vehicle depends very much on the model that it is. Cars, for example, have 4 fuel variants – petrol, diesel, electric and hybrid. They even differ by drivetrain like all-wheel drive, front-wheel drive, and rear-wheel drive. The variations also depend on its use – hatchback, sedan, sports utility vehicle (SUV), 4×4 off-road and so on. Each of these variations determine the right value of the car.
The age of the resale automobile decides its depreciation value. The older the model, the lesser its value. The year of the model is one of the more obvious factors to consider for a used automobile. Typically, a 12 year old model will fetch much less value than a 5 year old model. Of course, classics like the Vauxhall Wyvern – 1948 or the iconic Chevrolet Biscayne Hard Top 1958 are immediate exceptions. You’re in heaps of luck being on either end (buyer or seller) of these cars since they hold a significantly high value, beating all parameters in this checklist.
The trim of a vehicle usually has three variants of the same model. It is easy to differentiate between trims as the makers classify them by certain designations such as Sport or XLE. Car variants in India are priced in an ascending order based on 2 important factors, fuel type and features. There are usually two fuel variants and 3 feature-based variants for almost all cars. A diesel variant costs more than its petrol counterpart. Both fuel variants have the same three feature variants – the base model, the standard model and the high-end model (the one with the most features). While the base model trim does not fetch much value, it is the ‘bells and whistles’ on high-end models that create a price difference on a car’s resale value.
Another, rather obvious factor to consider during an automobile’s resale valuation is the number of kilometers it has been driven. This indicates the frequency of the vehicle’s usage when compared to the year of its sale. Ideally, vehicles that have been used less despite being an old model, tend to fetch better value since it has better potential for future use. Similarly, a model that has been used frequently in a smaller timeframe of say, 2 years will still fetch a good price as it is still fairly new.
This is by far the most important factor to consider. The condition of the vehicle will determine whether it is worth the investment in the first place. All other factors are considered only when a full checkup performed by a mechanic clears the vehicle for resale. Things to consider when checking the condition of a vehicle include engine, transmission, clutch, brakes and fuel consumption (mileage) to begin with. Other parameters include tyre condition, AC and Air Bags (for cars), upholstery and internal wiring, lights and so on. Check for scratches and dents for insurance purposes as well.
Other factors include the vehicle’s history, ownership history, service history and so on. All of these factors determine the insurance value of the vehicle which is another important point to look out for. It is better to consult with an agent for the same. While obtaining this data manually itself is an exhausting task, it can be calculated automatically online. The Orange Book Value of a car or bike can be calculated online to determine the right value a vehicle can fetch. All a buyer must do is look up Used Vehicle Pricing Calculator and fill up the required criteria for the right deals in the market. OBV with its data science and algorithm-based pricing helps buyer to get the right price.