Buying a used car may seem like a daunting task for someone who is new at it. It involves careful planning and organization. But in order to gain maximum benefit one has to keep in mind various factors when they buy used cars. The first thing that the buyer has to do is carry out a proper car valuation. You can buy used car from car dealers, at used car sales or even opt for the online mode for a more direct approach, but for either of the options the valuation of the used car is a necessary first step. After a home, a car is typically the second most expensive purchase anyone makes and settling on a new vehicle is not a decision that one can take hastily. Car depreciation is a major downside of car purchase. Once you roll those wheels on the road a new car loses its value by a huge margin, as much as 40%. This is a much bigger issue for new cars as compared to second hand cars. The resale value hardly reduces in case of used cars unless it undergoes huge damage thus making used cars for sale a big hit among people. There are various factors that are responsible for car depreciation- Mileage- This is undoubtedly the first factor that is responsible for rapid deceleration of car value. During any second hand car price valuation the number of miles the car has run determines its resale value. Greater is the wear and tear more is the depreciation.
Car history- Any prior history of accidents or changed parts can reduce the car price drastically. Even if the car has not met with any accident the car value drops by a huge margin with age. Number of owners- When it comes to car depreciation the number of hands it has been in also matters. The fewer the number of owners the better. However the depreciation is maximum for a new car. When you try to sell a used car more than once the value does drop further more but not as much as it did the first time. Car type- Big and luxury cars tend to depreciate faster as compared to smaller cars as the cost of maintenance is far greater for luxury cars. Age of the car- Cars of older variants lose out on value because of the availability of newer variants in the market. So older is your car greater is the depreciation.
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