Tit for Tat
There are a number of factors that affect the price of a car and even more that will determine the price a seller can get for their vehicle. Consumers need to be aware that basing what they think they will get on the retail price they see will be a mistake as there are a lot of costs that the dealer has to absorb before the car hits the showroom floor for resale.
Related: How to get the best deal when buying a car with cash
Consumers need to take into account some of the factors that will influence what a dealer or buyer will be prepared to pay. This price will usually be the market value minus the costs associated with each factor. What those factors are will greatly vary but for the most part, can be grouped together the below.
Popularity
The overall popularity of a vehicle will influence its price. The more demand for a vehicle there is the more a dealer can ask for it and vice versa the less likely the vehicle is to sell quickly the dealer will offer less as they don't want to be left with a non-seller.
Mileage
The higher the mileage on a vehicle the less likely the dealer will be inclined to offer top dollar as high mileage is a sure sign that forthcoming maintenance will be costly. Buyers are also wary of high mileage cars for the same reason and once again the dealer will not want to be left holding stock that doesn't sell.
Condition
Even if the vehicle in question may have high kilometres and be an unpopular model, it can still sell if the condition is good. On the flip side, a vehicle in poor condition will deter buyers and the dealer will struggle to sell it on.
Age
The age of a vehicle does the exact same as mileage and condition as buyers will be less likely to purchase an old car as they will be aware that high maintenance costs will be on the horizon.
Drivetrain
The drive train in eth vehicle is a huge factor swell as the market for large engines with manual transmissions is shrinking as consumers seek out fuel-efficient cars with autos. Having the drivetrain of choice will sway the dealer especially if it is hot at the given moment.
Brand
As has been proven South African s are very brand conscious and certain brands will definitely have better equity than others despite perhaps not being as good as others. Certain brands hold their value better than others so be mindful of what you are selling and or buying for the future.
Colour
Data has shown that certain colour cars are more desirable than others and as such a dealer may be less inclined to buy an exotic paint job versus a plain white model.
