So you have driven your car in Dubai, UAE for a while now, and it seems to have been a fruitful experience. You are now ready to sell your car in the used car market of the UAE. It is very important to know the accurate value of your car to be able to sell it for the right price. The Dubai car market is flexible and changes very quickly based on market demands, seasonal changes and more. This article will help you understand the steps you need to follow in order to evaluate your car properly and sell it for the right price, to your satisfaction.
Let us first understand what it means to value your car. It is nothing but a fair price for which someone will buy your car in today’s market. It is used by different entities in different ways. Buyers use it to find cars for good prices. Banks use it to give loans and financing services to people buying cars, and lastly, insurance companies use it to calculate premiums.
There are some terms that you will commonly come across when you venture into this market. Knowing and understanding these terms is important so that you don’t get misguided. Here are three of them:
Some of the aspects that directly determine the price of your used car include the make and model of your car, which determines most of the value. Then comes the year of production, which predicts the average depreciation. Then the mileage and history of your car, which shows the lifetime health of your car, and finally the outer and inner look and feel of your car. All these factors come together to determine the final value of your car.
You can easily predict the depreciation of your car’s value over time by looking at the data. In Dubai, most cars lose up to 30% of their value in the first year on road and then another 15% annually for the next 3 years. After this you can expect the value of your car to stabilize and not go down any further.
An amazing thing about our online world is that there is a solution for everything. When starting to evaluate your car for resale, try and look up some online platform like ExpatCarBuyers that will evaluate the price of your car for you. There are various UAE based car valuation platforms that can help you with this task. All you will need to do is provide some small bits of information about your vehicle, and then voila, you will have your online valuation for your vehicle.
These tools require a few inputs in order to provide a general estimate of your car’s current value. Input data like the make and model of your car, any added features, the current odometer reading, the overall condition (be honest), with providing information of your car.
This data is then measured by the valuation engine against real-time market data and recent car sales to come up with a reasonable average price for your car. Do know that these valuations online are just a starting point for you and in no way confirm the accurate final price of your car.
Always maintain the physical and mechanical condition of your car. This is really important in the resale value of your vehicle. Avoid any minor scratches, dents and other flaws when constructing the first impression of your vehicle in front of a buyer. On the interior, make sure that the buttons, the infotainment system and the data meters are running perfectly fine.
On the mechanical side make sure that your engine is in pristine condition and that the internal working parts, such as the AC are working well. Check the gearbox, brakes, and other constituent units for proper functionality. If anything is not working, get it replaced. Make sure that you get an on-site inspection done. This will bring out flaws, if any, so you can correct them before you sell your car. Last but not least, the mileage on your car will tell you how much value your car has lost.
Always try and sell your car before it reaches 100,000 km in mileage, as demand drops sharply after that. Always get your car serviced at the official center. This will raise its resale value
Market demand is truly an eventful thing. Sometimes, you’ll see the same car of the same model selling for different prices. Usually, In Dubai, cars lose their value at a predictable rate. 30% in the first year. Following that, it loses around 10% every year for the next four years. Once that’s done, the value of the car becomes stabilized and doesn’t go down much after that, unless you get into an accident or damage your car over time.
Keep in mind that the brand of your car and its reputation play a major role in how fast your car’s value depreciates. Brands like Toyota, Nissan, and Lexus have a reputation for lasting longer and requiring lower service costs. On the other hand, brands like BMW and Jaguar are known for high service costs as well as frequent service needs. Moreover, data shows that SUVs and low fuel consumption cars always fetch more money than their counterparts because of their demand in the market.
Here are some of the common mistakes that people usually make when valuing their car.
When you study the market and then value your car based on verifiable data, it gives confidence both to you and the buyers. Follow the steps by understanding the various prices that are available to you through online tools, site inspections, dealer offers, and more, and then choose the middle ground that you are comfortable with. In Dubai and UAE fast-moving market, always know your car’s worth before you sell it to spare yourself from any regrets later.
