Thinking of selling your car, buying a new one, or renewing your insurance? If so, it is important to know How to estimate car value properly. The value of the car is affected by several factors such as its type, model, year of manufacture, condition, local market, supply, and demand. To help you estimate the value of your car appropriately, in this article, we have prepared for you some criteria and controls that help you estimate the value of your car when buying, selling, or insuring in the UAE, and how to benefit from it to get the best possible deal.
What are the criteria that determine the value of a car?
Before you start the estimation process, you should know what criteria affect the value of the car. These criteria differ according to the purpose of the estimate, as it may be different between the seller and the buyer, or between the owner and the insurance company. But in general, these are the most important criteria to consider:
Make, model, and year: Each make, and model of a car has its own price and reputation in the market, and also each year has an impact on the value according to the degree of aging and wear. Usually, the newer, more expensive, and more popular the car, the higher its value.
Condition: The condition of a car indicates its usability, quality, and beauty. The condition of the car includes the condition of the engine, gear, brakes, tires, battery, and other mechanical parts, in addition to the condition of the bodywork, paint, glass, lighting, and other external parts, and the internal parts such as seats, dashboards, and accessories. All of these parts must be clean and undamaged.
Vehicle mileage: The distance traveled indicates the extent of the car's consumption. The lower the distance traveled, the higher the value of the car, and vice versa. Bearing in mind that the distance traveled is commensurate with the age of the car. If the distance is too short, this may raise doubts about the correctness of the meter or the quality of the car.
Local Market: The local market reflects the supply and demand for a specific type and model of car in a specific region. The value of the same car may differ from one country to another or from one city to another according to its fame, popularity, availability, and competition. Therefore, you must follow the prices of similar cars in the local market to know their average value.
How do you estimate car value when selling?
If you want to sell your car, you want to get the best possible price. Therefore, you must estimate the value of your car logically and fairly, so that it is attractive to the buyer and satisfactory to you. To estimate the car's value when selling, you can follow these steps:
Online car valuation Calculators: This is the easiest and quickest way to get an approximation of your car's value. There are many websites and applications that provide free car value calculation services. All you have to do is enter some information about your car such as its make, model, year, mileage and condition, and you will get an estimate of its value according to average market prices.
Compare Market Prices: After you get an estimate from the car valuation calculator, you need to make sure that it is correct in comparison to the market prices. The value of a car may vary according to changes in supply and demand or seasons. Therefore, you should search for cars similar to yours on the Internet or in showrooms, and review their prices, conditions, and specifications. The closer the car is to yours, the more accurate the comparison.
Determine your asking price: After you collect all the information about the value of your car, you must set your asking price logically. Do not set a price that is too high or too low, as this may lead to customer rejection or loss of money. Make sure your price is within the average market price range and reflects the condition of your vehicle and its advantages and disadvantages. You can also leave some room for negotiation with the buyer, as this may increase the chances of selling your car faster.
How do you estimate car value when buying?
If you are looking to buy a used car, you are definitely looking for the best possible quality at the lowest possible price. Therefore, you must estimate the value of the car you want to buy accurately and carefully, so as to avoid falling into the trap of fraud or deception. To estimate the car's value when buying, you can follow these steps:
Examine the Car Thoroughly: Before you buy any car, you must inspect it thoroughly and in detail, either by yourself or with the help of a trusted expert. The examination helps you to discover the condition of the car and any problems or defects in it, and thus determine its real value. The examination must include all internal, external, mechanical, and electronic parts of the car, and it must use special devices for meter reading, computer, and technical examination. You should also ask the seller to provide you with the car's history, invoices, guarantees, if any, and make sure they are correct.
Use Online Car Valuation Calculators: After you have inspected the car, you can use online car value calculators to get an approximate estimate of its value. As mentioned earlier, these calculators give you an estimate according to the average market prices, but you must adjust it according to the condition of the car you examined. If the car is in good condition and free of problems, then its value may be higher than the estimate, and if it is in poor condition or has problems, then it may be less than the estimate.
Compare Market Prices: After you get an estimate from the car value calculators, you should compare it to market prices. You may find cars similar to the car you want to buy at different prices, so do not rush to make your decision, and look for the best possible offer. You should also take advantage of negotiating opportunities with the seller, and ask for discounts, add-ons, or guarantees if possible.
How do you estimate car value when insured?
To get the best possible insurance plan at the lowest possible price, you must estimate the value of the car as accurately as possible, so that you get the right coverage for its condition and your needs. To estimate the value of your car upon insurance, you can follow these steps:
Choose the right type of insurance: Before you start the estimation process, you should know what kind of insurance you want for your car. There are two main types of insurance: third party insurance and comprehensive insurance. Third party insurance is compulsory insurance in the UAE that covers damage that you may cause to others due to a traffic accident and does not cover damage that may occur to your car. Comprehensive insurance is optional insurance that covers all damages that may occur to your car due to a traffic accident, theft, fire, natural disaster, or other reasons. Usually, comprehensive insurance is more expensive than third party insurance, but it provides you with more protection and convenience.
Choose a reliable insurance company: After you have determined the type of insurance required, you must choose a reliable, approved, and reputable insurance company in the market. There are many insurance companies available in the UAE, but their services, terms, and prices are not equal. Therefore, you should compare their offers and read their terms and conditions carefully to know the level of coverage, waivers, and deductibles. To do this quickly and easily, you can visit Shory.com to compare quotes from different insurance companies in one place and purchase the insurance that suits you instantly and easily online.
Determine the value of your insured car: After you choose a reliable insurance company, you must determine the value of your insured car, and this value is the amount that you will get if your car is completely lost or damaged. The value of your insured car depends on the type of insurance you choose: if you choose third party insurance, the value of your car may be its market value, which is the amount your car could be sold in the market for at that time.
But if you choose comprehensive insurance, the value of your insured car may be an agreed value, which is the amount that you agree with the insurance company in advance, which may be higher or lower than its market value.
Usually, the higher the value of your insured car, the higher the insurance fee. Therefore, you must estimate the value of your car logically, so that you get the appropriate compensation in case of need.
These are some of the tips and steps that you can follow to estimate car value in the UAE, whether you want to sell, buy or insure it. Because the correct estimate of car value helps you to determine the type of insurance that is suitable for you and helps you to sell your car faster and to estimate the correct value of the car in case you want to buy a car.
