How to value used cars when you want to resell them

How to value used cars when you want to resell them 12

How to value used cars when you want to resell them

If the new car price is calculated based on fixed numbers of production costs plus taxes and fees the company must pay, plus sales, advertising, profit costs… then the used car price also has merit.

Every time someone wants to resell a car that has left the sea, that car has become a used car (used car), regardless of whether the car has rolled only 10 km or 1,000 km.

The car glides

With this type of car, the formula for calculating the resale price is quite simple.

For example, the Vios G 2021 has a rolling price of 650 million, of which the rolling cost is about 80 million.

Vehicles from 2 years or more

From the second year onwards, in addition to losing the cost of rolling like a drifting car, the car owner will also lose additional vehicle depreciation money each year.

Used car price = Used car price – depreciation +/- influencing factors.

Regarding depreciation, each segment has its own depreciation rate, and each vehicle line in each segment continues to have a different depreciation rate.

For example, if Vios G 2021 is sold in 2023, depreciation will be about 10-15 million/year.

With luxury cars, depreciation costs each year can be up to 100 million or more.

In fact, it is not true that the older the car, the greater the depreciation, because depreciation is limited.

Mechanic checks the car before buying.

But if you only subtract depreciation, it will not be possible to get the resale price closest to the market, because this calculation is incomplete and does not take into account +/- `influencing factors`.

Factors affecting the basic price of a car include:

– Car supply: when there is an excess supply of a certain used car model, car prices will have to decrease accordingly.

– Liquidity of the car line: the ability to resell quickly or slowly.

– Vehicle quality: is an important factor that determines the process of buying and selling a used car, as well as the car price.

For example, if there are two 2015 Vios that have not crashed, flooded, or had any major collisions, then the one that has been driven less, has a genuine maintenance history, or has only had one owner from the beginning, the owner of the vehicle that has been well maintained will often be considered the winner.

– Who to sell to: selling to users will have a better price than selling to used car showrooms, because they are the ones collecting the cars for resale.

However, if sold to showrooms that specialize in a certain car model, the price they charge will be 5-10 million higher than other showrooms that sell many car models.

– New car price: Fluctuating new car prices will affect used car prices, especially for cars under 3 years old.

Thus, after understanding all the above influencing factors, the car owner can calculate the amount of money earned when he wants to resell the car to the showroom as follows:

For example, the 2018 Honda City, after deducting depreciation costs, is 520 million.

Even though selling at a lower price, the biggest benefit of selling to the store is to get 100% cash back quickly.

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