Determining Car Value
If you’re interested in obtaining a loan against your vehicle, remember that the size of your loan will depend on several factors. These include things like your income and your credit history, in some cases, but the number one determining factor is the value of your car. Here, you can learn more about the things that go into determining your car’s value.
Make and Model
Cars, like anything else, have varying values based upon the make and model. Some makes are naturally more valuable than others, and some models may have luxury features that make them even more valuable still. When a lender places an amount on the value of your car, the make and model are very important factors. This is often the first piece of information you’ll be asked to provide about your vehicle.
Once the lender has information about the make and model of your car, it will also want to know more about the model year. Although the age of your car won’t stop you from getting a loan, it may affect the overall value of your car and ultimately help determine your loan amount. As an example, say you're looking for Cardiff logbook loans and your car is 20 years old but only has 20,000 miles on the odometer, it may be worth more than a car that is 5 years old and has 200,000 miles on the clock.
Condition of Vehicle
A car’s condition can play some role in its overall value, as well. If your car is 20 years old but has been kept in a garage and well taken care of, it may be worth more than a car that is 5 years old but has rust, oxidation, and a rough interior. Although a car’s condition may not affect its operation, it can affect its overall lifespan and the car resale value. That’s why many lenders will ask about the condition of the car before providing you with a loan.
As you might already know, the number of miles on a car can tell someone a lot about its anticipated remaining life span. Cars will typically drive well for about 100,000 miles before any major parts must be replaced, and an engine is expected to last for up to 200,000 miles. If your car has many miles, then it may have exceeded its mechanical limits. When this happens, the value will decrease significantly. A good rule of thumb to keep in mind is that low-mileage cars are usually worth far more than their high-mileage counterparts.
Last, but most certainly not least, your car’s history can also play a role in its overall value. If your car has been flooded or wrecked, this will decrease its value quite a bit. Either of these things can significantly shorten the expected lifespan of a car, which means its anticipated value is much lower. As an example, if you have two of the same make and model year car, but one has been in a wreck and the other has not, the wrecked car may be worth only half the value of the pristine car, depending on the nature and severity of the damage.
If you’re thinking about getting a logbook loan on your car, it may help you to understand how your car’s value is assigned. It’s based on everything from the make and model to the mileage and even the history; all of these things influence the car’s expected lifespan as well as its demand on the open market.