Buying and owning a car in any Indian household is a luxury, a statement of success, and a matter of happiness. In recent years, due to the COVID-19 pandemic, people have been resorting to private conveyance as it is much safer than public transportation.
Because of the economic distress caused due to the pandemic, purchasing a first-hand car is becoming increasingly difficult. People are searching for other options, like used cars, to fulfil their desire for a car.
The used car markets have become quite popular in recent times. The cars sold here are in good condition and are as good as new, but certain factors affect the worth of the car, which is shown when a car valuation online takes place.
Why Do Age and Model of A Used Car Influence The Worth Of The Car?
Many factors affect the worth of an old car, like accident history, exterior and interior conditions, and how many owners the car has had, the car’s mileage, the odometer reading etc. But the most important factor influencing it is the age and model. How do these two factors influence the car’s worth? Let’s check that out below!
Age of The Car
The car’s age is the most important factor as it affects the reliability of the old car, and the market value of the car solely depends on it. If the car is three to five years old and in good condition, considering other factors, then its worth goes up. If the car is more than five years old, then the worth of the car goes down because it undergoes wear and tear, and such cars lose their worth in the eyes of the seller.
In certain cases, things are different, like vintage cars, where the law applies differently. It works like Giffen goods, where the price does not matter. The value of the goods matters, and even when the price of these vintage cars is higher, people are willing to pay more.
In the same aspect, the car mileage and car age are the two sides of the same coin. Car mileage refers to the number of kilometres the car has been driven, and the less it has been driven according to the odometer reading, the more value it has. The car’s parts, if driven more, lose their capacity, which is why used cars over five years old lose their worth in the used car market.
Apart from the car’s original purchase, the car’s age is measured by the depreciation it has incurred( Every asset depreciates). It determines the loss of the car’s value over time, and if the car has undergone some repairs and maintenance, that is also calculated, and that is how the age of the old cars affects the sales of these cars.
Model Year of The Car
Automobile manufacturers make so many cars in different styles and models. We can differentiate between them by looking at them, but looking from the point of view of car sellers, there are many cars of the same model. But the year of manufacture is different; it can be easily found out by just looking at the exterior of the car, where the badge number, and the model year are written. This is all about how to know the model of the car and the date of manufacture. But how does it affect the worth of a used or old car?
Cars are manufactured in bulk, and some models and types are the same. Maybe a year later, another version is introduced in the market with some tweaks or changes. This directly affects the worth as people tend to buy newer versions. But in the used car market the previous model has a high demand and can be sold easily if it is in good condition.
With the introduction of newer models, the older models of the car, if not more than five years old, sell like hotcakes in the used car market. Still, there is one issue: if the model of the car is no longer in production and is discontinued by its manufacturers, this can single handedly bring the car’s worth down.
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No one wants to invest in a used car out of production. If repairs and maintenance are required, it becomes extremely difficult to get the spare parts. It costs extra money to get the parts which puts extra pressure on the pocket of the new owner of the used or old car.
In most cases, the spare parts are not available in the market, which makes the car useless or more expensive in the long run.
On the other hand, if the spare parts are available in the market, the repairs and maintenance cost more than their new counterparts and mechanics charge more for their service as they have to put in extra effort to do the repairs.
It is the reason why the model year is an important factor to consider when the valuation of an old or a used car happens. These things are not always disclosed by the seller but verified sellers of used cars have all the information regarding this and the best you can do is check car valuation online who provide all the details you need for any old or used car and will help you in making the right decision.
The age and model of the old and used car affect the worth and price of the car. The best course of action is to follow the above information and get the car checked properly, and then make an informed decision before even thinking of purchasing.
The car’s most recent model and less age should be the first priority when buying an old or used car because the value and worth of the car will be more.