If you are buying a second-hand car from a dealer, how do you know that it has been valued correctly? You want to make sure that you are getting a good deal when purchasing your new vehicle, and the price it is being offered at is right for the age, make, model and mileage of the car. If you think it has been undervalued, it might indicate previous problems with the car.
If you are concerned that it has been overvalued, you might end up paying too much, and get less than you were hoping for the car if you choose to sell it on.
Check the guidebooks
If you research vehicle appraisal guide prices, you will be able to see estimated values for the car that you are wishing to buy. This will give you the exact make, model and year of the car and give you a number of different estimated values. These values are for whether the car is in poor, fair, good or very good condition. If your car has a higher than average mileage, then your car may not be worth as much as stated in the guidebook.
If a car has been upgraded with some specifications, it may be worth more. Examples of this are a security system, in-car DVD players, alloy wheels and connected in-car satellite navigation system. Always ask yourself, however, how much is a specification or modification worth to you? A seller might try and convince you that they have spent thousands of pounds installing a bass stereo box, a rear spoiler, and a personalised paint job – this doesn’t mean that it has added value to the car. In fact, it may have even devalued it.
Has there been any previous damage?
It is worth getting an Accident Damage Report and a Vehicle History Report if you are purchasing a vehicle, as it may have previously been in an accident. Although damage might have been externally repaired, this may affect its value. These reports will give you a good idea of the previous history of a car and whether the wear and tear are reasonable for its age.
It is important to research whether a second-hand car has been correctly valued. It means that you are paying a fair price for the car, or can negotiate if you think that the value should be different.