It’s not uncommon for drivers to have questions about their vehicles.
You often wonder, “How much is my car worth?”, when you set out to sell it. It makes sense to have a realistic idea about the value of your car.
Whether you plan to sell it off or purchase a new one in exchange, you cannot overlook factors like depreciation. Moreover, personalized cars may also affect the price of the vehicle. Besides, selling off a vehicle with adequate insurance cover might fetch handsome returns. To know the cost of car insurance in Ontario, reach out to the insurance experts at Surex.
Read this article to learn the answer to the question, “how much is my car worth?” Canada.
Selling off your existing car: calculating the depreciated value
The average price of a used vehicle in Canada in 2021 was $33,240. Compared to 2020, this is around 35% more, which shows a healthy trend for sellers. With cars becoming expensive in Canada, the value of used cars is continually rising.
Within the end of the first year, you might lose around 20% of the value of your car. On average, a 5-year-old car in Canada would have lost at least 30%-40% of its value. For some models, the depreciation is even more rapid. So, you might end up losing 70% of the car’s value in the first five years. Many automobile owners settle with used vehicles since they benefit from the depreciated value.
To set a realistic selling price for your car while listing it, you should know the depreciation value and market trends. While pricing it low to sell it off quickly deprives you of the maximum value, overpricing your used car would simply delay your deal.
So, experts recommend considering a combination of factors like accidents, damages, odometer readings, scratches, mileage, and other aspects while pricing a used vehicle. In a nutshell, you should set the price competitive enough to attract potential buyers. So, if you are wondering “How much is my car worth?”, simply use a depreciation calculator to determine the value.
Factors that influence the value of a used car in Canada
Trusted car valuation platforms determine the value of used cars based on various parameters. Here are some standard parameters that experts utilize while pricing used vehicles in Canada.
1. Operational condition and mileage
The mileage and operational conditions of your car largely determine its worth. Other aspects that influence the selling price include the location, features, and options. With increasing mileage, the vehicle would undergo more wear and tear. So, a potential buyer would be ready to pay more if your odometer reads 50,000 miles and less if it reads 100,000 miles.
To enhance the value of your car, make sure to have a comprehensive insurance policy. When you sell the vehicle, the buyer also enjoys insurance coverage privileges. Talk to the experts at an insurance brokerage regarding a viable policy that would help you command a higher price for your used car.
2. Integrations and features
Having certain features in your car can significantly leverage its value. Even after depreciation, these models tend to hold more value than others. For instance, AWD cars are more expensive than 2WD cars. Cars having panoramic moon roofs tend to demand higher values. Some of the other integrations that boost the car’s value include power windows, air conditioning, and door locks.
Besides, automatic transmission comes under the same category. On the other hand, if you own a sports car, models with a manual transmission would fetch you better returns. This is because the owners would be ready to compromise convenience as the driver involvement in these cars would be higher.
3. Personalized features
Do you love integrating aftermarket features into your car? Well, having oversized wheels, fashionable seat covers, rear spoilers, or stereo speakers can lower the value of your car. Not all buyers prefer these features. Besides, many owners are unaware of how well these features might work.
Also, the exterior colour significantly affects the vehicle’s pricing. Statistics reveal that cars with silver, blue, and metallic colours sell faster than purple, orange, and brown ones. Therefore, you must be aware of colour preferences if you plan to recoat your car.
Factors affecting the depreciation of your car
Let’s explore the factors that affect the vehicle’s depreciation.
- Vehicles from reputed brands tend to depreciate slower than others. For instance, Toyota cars are known to hold their value for long.
- The demand for a particular model can also affect its depreciation.
- Other factors to consider include the durability and reliability of the vehicle. So, if you own an on-demand vehicle, you can expect a higher value for your car.
- Again, if the manufacturer offers sizable discounts to leverage the sales of the car, the vehicle would depreciate faster in the aftermarket. This is because buyers would not be interested in buying used models when they can purchase a brand-new model at a discounted price.
- Luxury vehicles tend to depreciate faster than other cars. The reason is upscale models are more expensive to repair and maintain as they age.
- Currently, electric cars undergo depreciation faster as the technology is fresh. Drivers often find them impractical due to the absence of trained mechanics.
Before we wind up, let’s discuss some tips to help you manage your car’s depreciation value.
- Try to purchase on-demand models that are currently dominating the market trends. This way, you would own a popular car. Later, you can easily sell the car due to the high demand.
- Don’t overlook the regular maintenance to ensure proper upkeep of your car. As we discussed, cars in better conditions sell off faster and fetch better values.
- Talk to qualified insurance brokers to learn how to get affordable car insurance that offers adequate coverage and protects the car’s resale value.
If you are wondering how much is my car worth Ontario, you can consult a local dealer for a more personalized quote.
Besides you can also discuss the parameters, we mentioned in this article with the experts.