Top factors that affect used car valuation in India

Apr 26, 2021 2 min read
Top factors that affect used car valuation in India

Accurate used car valuation is essential of buy or sell a vehicle at the right price. However, there are multiple factors that can affect the valuation of your car. Let's find out.

To sell or buy used cars without getting duped, you need to know the right valuation of the vehicle. There are several factors that come into play before deciding the final valuation of a used car. No matter, what type and make of car you have, the valuation process of every vehicle is almost the same.

Here are a few crucial factors that can affect the used car valuation.

Vehicle Condition

Condition of the vehicle plays a crucial role in deciding the valuation of a car. It helps in determining the amount of wear and tear the car has suffered over the time of its usage. The amount of damage can bring down the value of your dramatically. However, the car can fetch a good value if its visually appealing and has suffered lesser damages.

Number of Kilometres

The more numbers are clocked on the odometer, the lesser valuation used car will fetch. Number of kilometres reflect the amount of usage and a higher wear and tear. The lower reading on the odometer would mean greater valuation.

Year of Purchase

The year of purchase also plays a vital role in calculating car valuation. For instance, diesel cars beyond the age of 10 years a banned in Delhi. Hence, if a diesel car is older than 10 years then you will not be able to buy or sell it in Delhi-NCR. Or if a model is discontinued, then buying the vehicle would not be feasible as you would find it difficult to get it serviced or buy spare parts.

Service Record

Car's service history reflects how well the vehicle has been maintained throughout its lifecycle. A flawless service history can help in getting a better used car valuation as it would assure the car is well maintained by professionals on a regular basis.

Accident History

Damaged cars attract lesser resale value. However, the valuation would depend upon the extent of damage. In case of cosmetic damages limited to only external body parts, the used car valuation might not take a deep hit. However, if the damages are mechanical and structural, the car valuation might come down drastically. Hence, check out the insurance claim history carefully to identify the accidental history of a car.

Sales Channel

The way you are buying or selling used car also plays a vital role in determining the valuation of a car. Used car dealers offer a higher price along with hassle-free documentation to sell or buy used car. However, if you are selling your car through a private sales channel, you might get lesser value and the hassle of managing all the documents will be on you.


Color also plays a major role affecting the final valuation of a car. For instance, popular colors like White are in more demand and colors like Black which demands high maintenance are not preferred by buyers. However, its not compulsory.


Any personalization or modification can bring down the resale value of used car. It is because the quality of modification always remains in doubt and in some cases it also voids the warranty of the vehicle.


Location of the vehicle can impact the valuation of a car. For instance, SUVs are expected to have high demand in tier 1 cities like New Delhi and Mumbai because of people's spending power. However, some models will not experience the same demand in tier 2 or tier 3 cities.

CarInfo considers all the above mentioned factors to help you give accurate used car valuation. Download CarInfo App now.

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