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The Value of Valuations

What defines a car's value

Vehicle valuations may be duller than baked beans, but understanding the trends could save you thousands. So, what defines a car's value? The main factor is supply and demand. When demand exceeds supply, values rise. When supply exceeds demand, values fall. Therefore, bargain hunters must watch for weakening demand.

The Vauxhall Vectra, for example, was recently replaced by the Insignia. This radically different design makes the Vectra appear elderly, even the name is consigned to history. Mix in weak markets, generous supply, and an unfashionable badge - and values will inevitably drop.

Another trick is to buy vehicles with 'perceived imperfections'. Models with garish colours, unpopular engines, and basic equipment suffer on the used market. After all, blue estates sell quicker than pink saloons. Recognising these trends has two benefits. Motorists either avoid 'undesirable' vehicles, or exploit the advantage. The choice, as they say, is yours.

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