subject: Price Determinants in the Sale of a Used Car [print this page] Price Determinants in the Sale of a Used Car
Orange County is one of the most populous counties in California. It has various roads and highways. In Orange County, people use two kinds of transportation. These are public transits and private vehicles. Public transits include freeways, railways, and taxicab services. Owners of private vehicles use brand new cars or used cars.
Used cars are purchased from car dealers. Used cars are commonly known as second-hand cars. Dealers obtain second-hand cars from private individuals. They sell their cars to dealers in exchange of a definite amount of money. There are five determinants for sale of used cars. These are longevity of use, car model, brand, automotive features, and car enhancements.
Longevity of use refers to the vehicle's current life span. Basically, recently-purchased cars are more expensive than old ones. Recently-purchased cars have less damage, mechanical problems, and exterior smudges. They have been used for a short span of time. Conversely, old cars have had undergone mechanical repair and renovation. Dealers check accident and maintenance history of vehicles before purchase.
Owners frequently sell their cars after one to two years of use. Commonly, sale of cars is an owner's final option to settle financial setbacks. Therefore, sale of recently-purchased cars is less frequent than sale of old cars. For an Orange County used car dealer, longevity of use is an important factor in acquiring second-hand vehicles.
Moreover, car model and brand affect price quotation in car dealership. An Orange County used car dealer charges high cost for the latest model of vehicles. Car models have different varieties. For instance, Car Model A has 1990, 1994, and 1996 versions. Logically, a dealer gives higher compensation for a 1996 version. It has a higher market value compared to older models. In marketing terms, it is more "marketable". Dealers charge higher cost for newest car versions. Likewise, it provides higher returns for high-end car brands.
Automotive features and car enhancements refer to a vehicle's interior parts and exterior surface. A car may have tinted windows, accessorized side mirrors, covered car couch, and designed steering wheel. An Orange County used car dealer charges higher cost for vehicles with mag wheels and rims. Car enhancements make a vehicle more marketable. They pull up market value because of its aesthetic effect on cars
