How Used Car Values Are Determined
You know that a used car is in better condition than a new one, and that used cars have less maintenance costs than new ones. But how exactly do used car values differ from new car values?
The difference in a used car’s value from a new one can be attributed to the following factors:
The amount of money you can expect to lose in the value of your car over the course of a year. This amount is determined by subtracting the value of your car on the day you purchase it from the value of your car on the day you sell it.
This figure is important because it tells used cars in tempe you how much money you can expect to lose over the course of a year. The amount of depreciation your car experiences is also affected by the following:
- Year of car
- What year of car you purchase
- Make and model of car
- Year of production for a given make and model
- Age of the car
- How long it has been since the car was manufactured
- Year of vehicle registration
- How long it has been since the car was registered
- General condition of car
- The condition of your car affects its depreciation value. This is because older cars have more wear and tear and therefore a lower value.
- Loan term
- How long you plan to own the car for
- What type of loan you have on the car
- State of the economy
- The state of the economy can have a significant effect on the value of your car. If the economy is in a recession, used cars in tempe it may be difficult to sell your car.
- This is because people are less likely to buy a car at this time, as they are more likely to buy a new car instead. The economy may also be affected by the following:
- Interest rates
- The current interest rates
- The state of the stock market
- The rate of inflation in the country
In the United States, the value of a car tends to depreciate more quickly in areas with higher inflation rates. This is because the value of money tends to increase as inflation rates rise.
In areas with lower inflation rates, the value of a car tends to depreciate more slowly. This is because the value of money tends to decrease as inflation rates rise.
- The number of miles you drive your car
- The state of your car
- The type of driving you do.