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Find out about the factors affecting your car's market value and how to assess its worth with Savvy's informative guide.
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Savvy Editorial TeamFact checked
For many individuals, a car is one of the most significant purchases they’ll make. Whether you're buying, selling or insuring a car, understanding its market value is essential to make informed decisions. In this useful guide, we’ll look at what market value is, how to value your car and whether to choose market or agreed value when insuring your car.
When it comes to cars, ‘market value’ means the current estimated price at which a specific car model can be sold in the market. Knowing your car’s market value is important when purchasing a vehicle or putting it up for sale, helping to ensure you get a fair deal, and in an insurance context determines the amount your insurer will pay if your car is written off or stolen.
A number of factors can affect a car’s market value, including:
A car valuation, also known as an appraisal, is an estimate of your vehicle’s current price. This figure serves as a benchmark when buying, selling or trading in a car, and can help with determining suitable car insurance coverage and affordability.
You can get support finding out your car’s approximate value in several ways:
When you take out car insurance, you may be given the option to insure your vehicle for its market value or an agreed value. The agreed value is a set amount agreed with your insurer at the start of your policy, and is the amount you’ll be paid in the event your car is written off, even if its value has depreciated. Both options have their pros and cons, so it's essential to understand the difference between them to make an informed choice when insuring your vehicle:
Which to choose depends on a variety of factors, such as your car’s age and condition, your budget and whether you have a unique or modified vehicle that is more valuable than a standard model.
Disclaimer:
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