Not sure how much your car is worth? HPI’s guide explains the key factors that determine a used car’s value and how to generate an accurate valuation.

‘What’s my car worth?’ is the age-old question – and it’s usually followed by someone puffing air out of their cheeks and humming.

A proper car valuation draws on lots of different factors, and unless you’re a motor trade veteran, it’s difficult to know exactly what your car is worth.

The good news is that calculating an accurate valuation does not require decades of experience on dealer forecourts, because the same fundamental rules about valuation apply to all used cars. The only exceptions are rare or classic models, which require specialist expertise.

HPI’s guide explains the dynamics that determine valuations and how sellers can calculate an accurate figure.

What factors determine a used car’s value?

Condition

This is the number one element in a used car valuation. If you put two identical cars side-by-side, one immaculate and the other needing work, the former is obviously worth more.

Condition works on a sliding scale, and smaller defects such as minor scuffs or stone chips generally have little effect on a car’s value, while a major fault takes a chunk off the price.

Cars are emotional purchases, and it’s easy to convince ourselves that ours is better or worth more than the market dictates, but objectivity is the best policy. The more realistic you are about the car and any defects it may or may not have, the more accurate your valuation.

Paperwork 

Call it paperwork, provenance or service history – it amounts to the same thing. A used car with a full-service history – including evidence of any repairs or maintenance work that fell outside the regular servicing schedule – is worth significantly more than one without it.

As with condition, it’s a sliding scale. One or two missing service stamps might blunt the value a little, while no paperwork whatsoever takes a big bite out of the price.

Gathering all the car’s documents before you work out its value, let alone advertise it for sale, is worth it, as knowing exactly what you do and don’t have will help with both. Some newer cars have digital service histories, so contact the manufacturer for evidence of these before you get stuck in.

Age and mileage

It’s an obvious one, but a newer car with fewer miles on the clock is worth more than an older, well-used equivalent.

Age and mileage also work on a sliding scale, but the biggest impact comes at the beginning. Cars lose most of their value early in their life, typically within the first three years. This process is known as depreciation.

For conventional used cars, the value continues to fall after the first three years, but the rate of depreciation slows over time. That loss is also increased or lessened by higher and lower mileage.

All the gear

Buyers expect a used car to come with everything it had when it was new – and that includes anything removable. At best, a missing spare key, parcel shelf or locking wheel nut key is an inconvenience. At worst, it’s a bill for the hundreds of pounds. Missing charging cables for electric vehicles are even worse because they’re a much more urgent purchase and can come with a four-figure bill. 

As with the service history, these items don’t add to a used car’s value, but their absence will detract from it. 

Cleanliness

This is arguably the simplest of the lot, and it’s best to look at it from the buyer’s perspective. Which of the following would you pay more for?

• A car that’s clean, tidy and well-presented.
• A car that needs a good wash and is full of clutter.

Again, a clean car doesn’t add value, but a dirty one won’t make as much money. Ask yourself what you’d expect – and pay more for – as a buyer, and apply the same criteria.

How to value your car

Ask the experts

The hpi website’s free valuation tool is the fastest and most scientific way to value your car. Log onto www.hpi.co.uk, enter your vehicle’s registration number, and punch in your contact details and the site will calculate a highly accurate valuation based on an award-winning used car valuation database.

The site will give you three different valuations. The private sale value is how much you can realistically expect if you sell the car yourself, the trade-in price is what you can expect a dealer to pay for it (this is always the lowest figure because dealers build in a profit margin) and the forecourt or retail price (always the highest for the same reasons) is how much a dealer will typically charge when they sell the car.

Used car buyers can also use the site to perform an instant hpi check. This is a paid service (checks start at £9.99) that tells a buyer if there is anything in the car’s history of concern. The checks cover a wide range of areas, including whether a vehicle has been stolen, written off, clocked (when the mileage has been tampered with) and if it has outstanding finance. 

Check out the classifieds

This is the low-tech way of valuing your car, but it’s still worth a look, even when you have an official valuation. Search online for used cars advertised for sale that are as close to yours in terms of age, mileage, condition, make and model as possible. It’s unlikely you’ll find an exact match, but it should give you a reasonable idea of how much your car is worth.

Bear in mind the key elements from the hpi valuation: cars advertised by dealers are generally more expensive than those from private sellers. This is not only because dealers sell cars professionally and for a profit, but also because they often provide additional aftersales cover, such as warranties, whereas private buyers don’t. Again, the dealer’s trade-in value will be the lowest of all, but it’s also the fastest and most convenient way of selling a car.