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Simple Tricks on How Car Valuation is Calculated in India By Rahul Sharma

  in Automotive | Published 2017-03-06 12:48:04 | 325 Reads | Unrated


Nowadays buying and selling cars have become a regular affair but in maximum cases the customers are cheated by the dealer and the investment becomes futile. Hence, car valuation is extremely important in order to avoid these discrepancies.

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But the online market in India is slowly killing the aspect of dealers thereby making car selling and buying attractive.

Certain simple tricks are there that is followed in car valuation so that the best deal is offered to the customers.  Car valuation in India is calculated using certain basic parameters in estimating the price –

  • The internal condition of the car should be checked very meticulously. The status of the car engine, battery and other mechanical stuff should be
    taken into consideration.


  • The condition of the car from outside is of equal importance. Be it the fabric, the audio system and tyres, all should be evaluated.


  • Test driving is equally important for a used car as it is an important factor for any new car. The trial run can determine the exact status of the car presently.


  • Records of service of repairs should be checked because this showcases the past history of the car concerned. This is very important as this may also reveal if the car has faced any accident before.


  • Current market value of the brand should never be ignored. The current market value of the model of the car is also another key aspect which determines the car rate. The cars that have no production anymore should not be invested into. The popularity of the car provides with the information about its durability.


  • Small cars should be invested on. Luxury cars take a longer time in price depreciation while small cars get their price lowered after about just 2 – 3 years which is quite a short period of time.


  • The cars with multiple owners should not be bought. This is so because, too many owners can actually perplex the customer and he might fall into a trap.


  • The actual price of the car is compared to current price in India. This is an important factor calculated.  


  • The residual value of a car is always calculated after 10 years of its usage.   


  • The residual value is calculated by using certain assumptions and going through some market research on the experience of selling of previous cars. Based on this residual value the car depreciation is calculated per month. The depreciation is calculated by deduction of residual value from actual price and then dividing it by using the total months of usage.


  • The functioning of the car is tested in India, without which a good dealer will not sell the car and a logical customer will not buy a car. This factor relies on honesty.


If one tends to buy used car and all these steps are followed, then the customer can be sure of the fact that he is going on a right track about his car valuation. He will surely enjoy the best deals and not get cheated easily.



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