A vehicle valuation is a step that is all too often overlooked. The value of a vehicle isn’t always easy to predict because some cars can depreciate faster than others. If you’re selling a car you want to get the most for it, while buyers naturally want the best price and are always searching for a bargain.
Interestingly the cost of buying a used car has skyrocketed over the last two years. Trade Me, New Zealand’s largest online auction and classifieds website, reported that the median selling price has escalated from $9974 in July 2019 to $13,494 in September this year. The ongoing disruptions to the industry due to Covid and supply chain problems mean used cars are not losing their value as fast as they usually do.
Relatively new vehicles are easier to value, especially with an online valuation tool such as the AA Vehicle Valuation report. While some of these cars won’t cost as much as buying a new vehicle, they may still come with a fairly large asking price. An online vehicle valuation report is a good way to ensure that you’re paying the right amount for that specific car. Visit AA Vehicle Valuation Report to learn more.
When you’re looking to buy a classic vehicle, do your homework. This isn’t always easy, while scanning online auction sites may help, typically these vehicles can be very difficult to value, and it is wise to seek help from an independent mechanical expert. After all, you don’t want to end up overspending.
When you are ready to upgrade your ride and you want to put up an online advertisement for your current car, you need to know what to sell it for or what to settle for as a trade-in offer.
Finding the right price to sell your vehicle for is incredibly important. Set it too low and you risk losing money and you could also alienate buyers who suspect there is something wrong with the vehicle. Conversely setting your price expectation too high can put off potential buyers, and also waste time; especially if you have to sell your vehicle in a set time frame.
Insuring your vehicle for the correct agreed value allows to you replace it if the worst should happen. The agreed value the amount you will receive if your vehicle in the event of a total loss, excluding the excess and outstanding premiums. Therefore, its vital to get this accurate.
If you have a classic or particularly rare car, insurers may also ask for a valuation certificate from an expert as evidence.
If you wish to insure your vehicle for more than its worth, this can affect your premium. Agree on a price that’s less than what it’s worth, and you may just find that if your vehicle ever gets written off or stolen, you may not be enough to replace with a vehicle of the same specifications. Bear in mind that you’ll probably need to review your agreed value every year when your policy is due for renewal to ensure it is always up to date. This is particularly important due to the price fluctuations being seen as a result of the disruptions to supply.
Taking the maintenance of your vehicle into consideration is also worthwhile as cars that have been well maintained will hold their value for longer. Maximise the lifespan and value of your vehicle with regular servicing at AA Auto Centre. Our fully qualified mechanics can service any make or model vehicle with the latest equipment. Visit AA Auto Centre for more information.
Getting a vehicle accurately valued is the sort of thing that can be forgotten but failing to acknowledge a vehicle’s true value can catch you out in one way or another. It’s important to remember that not all cars are created equal and some models hold their value better than others. Valuations are often low cost and the benefits off the back of having one could save you money in the long run.
How the AA can help
- AA Auto Centre - aa.co.nz/autocentre
- AA Vehicle Valuation Report - aa.co.nz/vehiclevaluation
- AA Insurance - aa.co.nz/insurance
- AA Membership - aa.co.nz/membership
Vehicle experts you can trust