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What Changes the Value of a Used Car in Ontario?

What Changes the Value of a Used Car in Ontario?

We will often recommend checking the value of your car before listing it for sale or selling the car to a dealership. You’ll never know whether it’s a fair offer unless you know what the market is paying.

 

But what factors influence what the market will pay?

 

Let’s find out!

 

Each of the following influences the market value of a used car. They are in no particular order, but will all influence how much you’ll get.

 

The age of the car

 

If your car is not a vintage or classic, age will work against it. The older the car, the less it will be worth.

 

This is partly down to older cars not having all the safety tech and features of a new car and the perceived effect of wear and tear.

 

Even low mileage older cars won’t be worth as much as a newer one because of the lack of warranty and potential difficulty in getting parts.

 

General condition

 

The general condition of a car will have a huge influence over its value.

 

The better condition the car is in, the more it will be worth. That’s why we always recommend making minor fixes and making the car look as good as possible.

 

Because the car’s condition impacts its value quite significantly.

 

From a buyer’s point of view, a car in poor condition indicates lack of car throughout its life, which could hide very expensive issues under the hood.

 

It also means more work to bring it up to standard, which is a definite barrier to purchase.

 

Mileage

 

Even though we measure in kilometers, we still call it ‘mileage’ for some reason. Regardless, the more on the clock, the less the car will be worth.

 

This is for two reasons.

 

One, higher mileage cars will generally also be higher wear and tear, which means slightly higher servicing and maintenance costs.

 

It also means the car is less desirable. Even if a buyer did 100km per month, a higher mileage car would be less desirable because of the perception it’s close to end of life.

 

Most cars could quite easily go 250,000km with very little going wrong, yet many buyers are still attached to the older way cars were build, with a shorter lifetime.

 

Demand

 

If demand outstrips supply, prices rise. If supply outstrips demand, prices drop. It’s economy 101 and it works for cars too.

 

If there are hundreds of your type of car listed for sale, prices will be depressed as there will be lots of competition for buyers.

 

If your car is rare, prices may be higher but the pool of potential buyers may be smaller.

 

Then there’s vehicle type.

 

We are buying fewer sedans in favour of SUVs and crossovers. If you’re selling a sedan, your potential buyers will be fewer, than if you were selling an SUV, which impacts price.

 

There’s a lot that goes into valuing cars, which is why we suggest spending as much time as possible getting an accurate value for yours.

 

Then, when you’re ready, bring your car to one of our dealerships. We pay cash for used cars!

 

If you’re looking to sell your car, we’d love to buy it for a great price! Simply fill in the form below and we’ll get back to you ASAP. 

 

Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles! 

 

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