Car Valuation

What Affects Your Car’s Value? Understanding Car Valuations in 2024

3 min read

When it comes to selling your car, understanding what affects its value is crucial. Whether you’re getting a trade-in quote or selling privately, knowing these factors can help you set realistic expectations and potentially increase your car’s worth.

The Main Factors Affecting Car Value

1. Mileage

Mileage is one of the most significant factors in car valuation. Lower mileage generally means less wear and tear on the engine, transmission, and other mechanical components. The average UK driver covers around 7,000-10,000 miles per year, so a car with significantly higher mileage may be valued lower.

However, extremely low mileage can sometimes raise concerns too – a car that’s been sitting unused may have issues from lack of use.

2. Age and Depreciation

New cars depreciate fastest in their first three years, losing approximately 15-35% of their value in the first year alone. After about five years, depreciation typically slows down. Some premium brands hold their value better than others.

3. Service History

A full service history (FSH) can significantly increase your car’s value. It shows that the car has been regularly maintained and provides reassurance to buyers. Main dealer service history is generally preferred, though specialist independent garages are also acceptable.

4. Condition

Both mechanical and cosmetic condition matter:

  • Mechanical condition – Engine health, gearbox, suspension, brakes, and other components all affect value.
  • Bodywork – Dents, scratches, and rust reduce value. Major accident damage significantly impacts worth.
  • Interior – Worn seats, damaged dashboards, and stained carpets all detract from value.

5. MOT Status

A long MOT provides peace of mind and adds value. A car with 12 months’ MOT is more attractive than one needing immediate testing. Previous MOT advisories can also indicate potential issues.

6. Specification and Features

Higher specifications and desirable features can increase value:

  • Automatic transmission (increasingly popular)
  • Sat-nav and infotainment systems
  • Parking sensors and cameras
  • Leather interior
  • Alloy wheels
  • Safety features like lane assist

7. Colour

Believe it or not, colour affects resale value. Neutral colours (silver, black, white, grey) are most popular and hold value best. Unusual colours may appeal to fewer buyers and can be harder to sell.

8. Market Demand

Supply and demand affect prices. Popular models in high demand command better prices. Fuel type also plays a role – with increasing environmental awareness, electric and hybrid vehicles are becoming more desirable.

How to Get an Accurate Valuation

For the most accurate valuation, be honest about your car’s condition, mileage, and history. At Berkshire Car Buyer, we provide free, no-obligation valuations based on your car’s specific details. Our team considers all the factors above to give you a fair, competitive price.

Get your free valuation today – it only takes a few minutes, and there’s no obligation to sell.

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