Browse through any car price guide today and you’ll find an array of options to consider. Whether you’re looking for a premium luxury car or a smaller, zippy car to get you from A to B, when it comes to car shopping, most people are simply looking for good value.
We recommend car shoppers consider how car dealerships price cars in order to evaluate whether that car is, in fact, worth the price tag. When it comes to trading in your existing car for a different model, you need to consider the difference between the retail and market value, as well as what your insurer is willing to insure your new car for.
What is the difference between retail and market value?
Before selling your existing car, you have to consider the difference between the market and retail value of your car. The market value really reflects the adjusted retail value and will most probably differ from the retail value indicated under the different makes in the Auto Dealers Guide as it takes into account a number of variables, including mileage, your car’s condition, service history and accident reports. If you were to sell your car privately, the market value would be the price that you could likely sell it for. Because this figure can vary from car to car, short-term insurers find a way to standardise the market car value.
If something should ever happen to your car, Santam will pay out the reasonable market value of the car. The market value uses the retail value as the base and takes into account the amount of kilometres on your car’s odometer, the condition of the car as well as any extra items added to the car.
How do I calculate the market value of my car?
Santam’s online calculator can work out an estimated reasonable market value of your vehicle. There are 3 simple steps to follow:
Step 1: Guess how much you think your car is worth.
Step 2: Provide us with information about the make and model of your car.
Step 3: The result.
The last screen will display the estimated value of your car. If your results indicate that you could be over-insured, contact your insurer or broker.
Here is more car advice.
If you want to ensure you are adequately covered or request a quote, speak to your broker or call us on 0860 444 444.