Car Pricing: How It Is Set & What Makes It Sell For More

If you know which parts of the car make it sell for more money, you'll get why certain cars are more expensive than others. So, let's dive in and figure out how car prices are set.

Critical Components

We can all agree that the major components that make up a car affects its price the most. The engine, gearbox, and type of gearbox are some of these parts. A car's price can go up a lot if it has a high-performance engine and a modern gearbox system, like an automatic or manual gearbox. Most of the time, cars with more powerful engines and advanced transmissions cost more because they work better and are easier to drive.

Car Condition

The state of the car's exterior and interior is another important factor that affects the price. Cars with clean, comfortable seats, sound dashboards, and working entertainment systems tend to sell for more. In the same way, cars with well-kept exteriors, such as shiny paint and few scratches or dents, are more appealing to buyers and sell for more money.

Number of Past Owners

The price of a car is also based on its number of previous owners. In general, cars with fewer owners in the past can be sold for a higher price. With fewer owners, people tend to think that the car has been comparatively well-maintained and is less likely to have been neglected or worn down too much.

Mileage (Very Important)

The mileage is an important factor that has a big effect on how much a car costs. Mileage refers to the number of miles or kilometres a car has been driven. Most of the time, cars with lower miles sell for more money. People perceive a car with fewer miles has probably been driven less and may have less wear and tear as a result.

COE at the Time of Purchase

The Certificate of Entitlement (COE) is a big part of how much a car costs in Singapore. The COE is a piece of paper that gives people the right to own and use a vehicle locally. The price of the COE is set by bids, and it changes based on market demand. Higher COE prices can make a car's total price go up, making it cost more.

Colour

Can you believe the colour of a car can also affect how much it costs?

In general, white, silver, and black are popular colours. They tend to appeal to more people, which can lead to a higher selling price. Of course, there are also buyers that are willing to pay more for a colour that they can claim uniquely of their own.

When it comes to setting prices for cars, it's important to know what makes a car sell for more. The price of a car is based on many things, including its engine, gearbox, and type of gearbox, as well as its interior and exterior state, number of previous owners, mileage, COE, and even its colour. Taking these factors into consideration can help both buyers and sellers can make smart decisions about how much to charge for a car. 

So, the next time you see a car with a higher price tag, you'll know why it might be selling for more.