Cars are always a significant investment when you buy them, and it does take a lot of research to buy the perfect one that works for you. While you research, you would have also come to know that the value of a new car starts dipping as soon as you start using it. The value of most cars goes down about 20% within the first year of buying them. That could lead to a strain on your wallet after a few years. That is why you must purchase a car at a specific time of the year to reduce your expenses. You must also know when to let your car go and where you should sell it so that you can recoup most of the money you spent while buying it. Firstly, you should understand that many factors affect the price of your vehicle when you are selling it, and the selling cost would depend on the specifics of these factors. Keep reading to learn more about buying and selling cars- what affects their value, when to sell a used car and what factors play a role in the pricing.

Factors that affect the selling price of your car

1. Environmental factors: You understand that cars are pretty complex machines, and there are times that something might happen to them. Moreover, automobiles run a greater risk of malfunctioning due to environmental factors like dusty roads, pollution, adulterated fuel etc. For example, you would know that Delhi has been ranked as the most polluted city in India for a few years now. By this example, you can understand how bad the environmental situation in our country is, which ultimately affects cars. Further, the quality of roads could upset a car’s suspension and sometimes might even misalign the steering system. All of these eventually lead to the depreciated value of your car.

2. Depreciation Hit: As mentioned earlier, as soon as you start using your new car, it will lose up to 20-25% of its value in the first year or the first twenty thousand km of it running. The rate of depreciation gradually decreases after the first year. But, the value of your car will again take a massive depreciation hit after 3-4 years, when you can lose up to half of your car’s value since the NGT or National Green Tribunal of India banned the use of diesel cars after ten years of service. Thus, if your vehicle is more than ten years old, this will further decrease its value. Therefore, the earlier you sell your car, the maximum value you would get for it.

What is Depreciation, and why does it happen?

You would have now understood what depreciation is, but that brings us to the question of what causes depreciation. The first reason is the decrease in mileage. After a car has run about 30,000 to 40,000 miles, most bumper-to-bumper warranties start expiring. This is usually the time when cars are returned to the dealer or re-leased or re-sold. Plus, at this point, you need to do significant servicing for your vehicle, and that is quite expensive. Finally, during the fourth or fifth year of a car’s use, the maintenance costs start to skyrocket, so people prefer to purchase a second-hand which has only been used for two or three years when it has run no more than 30,000 to 40,000 miles.

Facelifts or model updates: Car manufacturers generally launch new updates or facelifts of every car model in their portfolio every couple of years- that is, in two or three years. Since most manufacturers are focusing on safety nowadays, new updates of car models come with ABS and AIrbags. These updates can make your three-year-old look outdated. Moreover, environmental authorities scrutinise cars, and new norms lead to the manufacturers releasing more frequent updates. Therefore, most people would want a car not more than three or four years old with the latest features which have not run more than 50,000 km. Thus, vehicles that are less than five years old have a better resale value in the market.

Best time to buy and sell cars in India

If you are looking for a new car to buy, India’s best time would be October to December. During this time, most festival seasons start, and showrooms and manufacturers offer considerable discounts to boost their sales. Thus, depending on your needs, you could buy a car with the latest features but make sure you research the vehicles available thoroughly. 
The factors listed above would tell you all you need to know about buying used cars or selling them. For example, the first thing people check before buying a used car is the odometer to check the number of km the vehicle has run. Plus, the years that the vehicle has been in use is also an important aspect. Hence, considering all of these aspects, make an informed choice on buying or selling a used car. For that, you can visit Delhi's Auto Best Emporio (ABE)  and grab any affordable premium car of your dreams!