Overhaulin'

what does the car value depend on?

so im not talking about classic muscle cars more like cars from 1990's and above,does their price go down because of the years past or is it because of the mileage put in it,also when a dealer say great for repairing credit,what do they mean by that?give me other information about car value if u have more thank you in advance

Public Comments

1. Value depends on the age of the car, the amount of mileage it has, the condition it is in and some silly stuff like the color paint (silver seems more popular than black). Other variables are the type of transmission (manual vs. automatic) the engine size, any rust, any dents, are the seats ripped, does the radio work, and so on.
2. The value of a car is dependent on the overall condition of the vehicle, the age and the miles. Popularity also plays a key role. Cars people want retain a higher resale value more than cars people don't want because they are easier to sell. A prime example of that is a Honda Accord vs a Mitsubishi Gallant. The Gallant is a fine car, reliable, decent looking and it rides nice. But the Honda is more popular and therefore retains a larger percent of it's original value on the used car market.
3. In a free market economy, the value of any tangible good or service is determined by the amount buyers are willing to pay. Lets say you have a ball point pen for sale. You put it up for sale at $10, but no one buys. You lower the price to $5 and no one buys. You lower it to $3 and suddenly you sell them by the hundreds. That pen has been determined to be worth $3 by the buying populous. This is true of all items for sale. So, in the case of cars, a car is worth what a buyer is willing to pay. The seller has the oprion to sell at whatever price he wants, as long as a buyer agrees to that price. Factors affecting general market price are age, condition, miles, mechanical suitability, market availability (more on market = lower price) and desirability. Dealers dont repair credit. Its a marketing tactic. They are generally buy-here, pay-here lots that will allow you to finance the over-priced car with them, as long as you use their in-house financing. They charge the highest rate possible, and will repo the car sometimes if you are one day late. The worst part is that the vast majority of these places do NOT report to credit agencies. So even if you do pay it off, never late it will not show on your credit and will not help your credit score.