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How Are Used Cars Evaluated and Priced?

Posted: Friday, November 29, 2013


By Adriana N.

Every year millions of people purchase used cars. At one time, people were taking their chances when they purchased a used car, but now, there are a number of companies and organizations that evaluate used cars in order to assign an appropriate price to the car. The goal is to provide consumers with an honest assessment of a used car so they are well informed before they make a purchase.

The history of the vehicle is one factor that is considered when evaluating and pricing a used car. The details of the report provide such information as if the car was a fleet car, rental car, and how many owners it had. It also will tell you if the particular make, model, and year of the car has a history of mechanical issues such as engine or transmission problems. The reliability of the used car is also evaluated and if the car has a clean Title history and will pass a smog and safety inspection. As well, the amount of mileage the car has will affect the price.

Used cars are also evaluated according to their condition. The following areas are assessed:

1. The exterior of the car is evaluated. Things to look for include rust, poor paint job, dents, scratches, and leaks coming from underneath the car. As well, one assessing the car will look for any missing or broken items such as damaged or missing windshield wipers. All of the doors, panels, and bumpers should be secure and in the correct position. A used car in excellent condition will not have any defects. The condition of the tires are also evaluated which includes the condition of the treads and if they are all the same size.

2. The suspension is another area that is evaluated. The corners of the vehicle should only bounce once or twice when the car is stopped. When the car is parked, it should sit in a position. There should not be any unusual sounds when the care stops such as a creaking sound.

4. The engine and the compartment and the transmission are evaluated. There should not be any fluid leaks or unusual odors when the engine is hot. As well, there should not be any loose components or unusual when the car is running such as hissing or clanking. There should not be any missing components such as caps. The engine is also evaluated according to how well it starts and how it runs, and if there is anything unusual such as lights coming on, if the engine idles smoothly or stalls. The transmission is evaluates according to how well it shifts and if it jerks, grinds, or accelerates too quickly. The mileage of the car is also taken into consideration when pricing the vehicle.

5. The exhaust system is evaluated. There should not be any rust, loose fittings, or black smoke coming out of the muffler. Well, blue or white coming from the exhaust may indicate an engine problem. Underneath the car is assessed for rust and loose and hanging parts. There should also not be any dents or scrapes.

6. The interior of the car is evaluated which includes the upholstery, door locks, windows (how well they open and close,) seat belts, airbags, carpet, dashboard, interior lights, and accessories such as the stereo, cup holders, and ashtrays.

The amount of inspection that goes into evaluating a used car is essential to protecting consumers from buying a "lemon." Fortunately, consumers have a number of options to assessing a used car such as checking the Kelly Blue Book Value of the car and acquiring a Carfax vehicle history report.

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