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Correctly Pricing Your Car

by Hello Harold

Posted on July 8th , 2019 at 12:15 PM

Fond car owners will dread the moment they’d have to give up their machine companion and replace them with a new one, but when it’s been in use for around 10 years, it’s time to say goodbye. There’s no easy way to do it, but at least you’d be able to give your car a proper farewell. Suppose you choose to sell it and make a few extra bucks to treat yourself to a new and improved companion, but wouldn’t it be a shame if you sold it for less than it’s worth? What kind of goodbye would that be? Many people will fall into the tram of incorrectly pricing their car. Not only are they selling their “baby” for cheap, but they’re also losing some good cash that could buy them a new “baby.” This usually happens when the person doesn’t follow the right procedure to pricing their car. Right measures are not exclusive to subtracting the costs of damages from the initial selling price. Some real math goes into this, so brace yourself.

Know your market

Imagine a diner in the middle of the desert. Chances are they’d be broke before their grand opening because their audience consists of a very unpleasant mixture of mountains of sand, cacti, and lots of dust. The problem here is obvious: They’re not reaching out to the right people (In this case, they’re not really reaching out to anyone). Anytime seek to sell a product, it’s mandatory you know who you’re selling to, otherwise it’s like putting on a metaphorical blindfold and diving into the ocean. Reality is, the car market is like a worldwide popularity contest. Some cars are more popular than others, and this all depends on the trend in the car market, demographics, age segments, and so on. You can’t expect to sell a Ferrari to a 50 year old stay-at-home mom, just like you can’t expect to sell a 24 year old an SUV. It just doesn’t work like that. It seems obvious: Don’t sell a Ferrari to a 50 year old mom, and don’t open a diner in the middle of the desert. Besides these blatantly obvious notes, selecting a market to sell your car in is an endless mathematical equation which you will need to work out. Several factors go into it, from finding your audience to familiarizing yourself with the mechanisms of demand and supply. It looks a little something like this:

  • Select an audience.
  • Observe their purchasing habits with regards to car marks, time of the year, specs, etc.
  • Research the demand on cars like yours within the market. If it’s a smaller market, you’ll have to go familiarize yourself with the buyers in order to know their preferences.
  • Observe the price change according to time of year. A convertible sells for cheaper in Winter, and higher in Summer. Things like rain-fall or sunshine really do affect the price of your car.
  • 5. Consult a professional on the best time to supply your car to the market. It’s going to be a lot of work, but at least this way you’d raise your chances of sale

Check the pricing guides

The typical answer would be to check how our car is priced on several platforms, but no. You’ll need to assess the quality of the car, including damages, mechanics, specs, etc. Going to a car mechanic for an estimation is the most near-accurate answer you’re going to get, so it’s highly recommended to just head to your nearby trusty mechanic and give them a look around the car. It’s important to note that your best friend or concierge is not considered a mechanic. If it’s not possible to do so, there are pricing guidelines online that can help you assess how much your car is worth. It would be a good idea to refer to online marketplaces and check how other people have priced the same car, and how many responses they’re receiving. Keep in mind that not everyone is going to give an accurate price, and underpricing or overpricing is always possible. Some people might only be getting responses because they’ve stupidly set the price too low and all the vultures are out there for blood, or in this case, cars have attacked.

Be a conscious seller

Ever seen a convertible in winter? Probably not. It’s because Santa doesn’t like delivering presents when his car is drenched in snow. Tis the season for celebration, but not convertibles. Just like any other festivity has a certain time, so does each car. Certain cars just can’t be sold during certain seasons, like convertibles. Owners of convertibles have to wait until the hot seasons to sell their cars, because that’s when buyers are most likely going to want them. Would you sell your ski set in summer? Your inflatable pool in winter? Demand is a tricky thing, but when it comes to seasons, it’s almost always stable.

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