What is the Market Value of my car? (Determining Factors)

If you own a car, it’s likely there’ll come a point when you’ll want to insure it, sell it or simply determine the total value of your assets. An important question to consider at this point is ‘What is the market value of my car?’. The market value, also known as the fair value or Open Market Valuation (OMV) of a car, refers to the price it might sell for in current conditions in a competitive open market of willing buyers and sellers. Determining the market value of your car begins with getting a car valuation.

In this article, we discuss everything you need to know about determining the market value of your car, including a range of car valuation tools, factors that can affect your car’s value and the difference between market value and agreed value when insuring your car.

What is the market value of my car?

The market value of your car depends on the present industry conditions and the condition of your car. Thankfully, the process of valuing a car can be simple (and free) thanks to a range of car valuation tools. A valuation tool can take the hard work out of valuing your car. It can determine your car’s worth based on a few details, including its make, model, year and mileage. 

Below, you can find several examples of free car valuation tools in Australia:

It’s important to keep in mind that when using a free car valuation calculator, it’s an estimated market value you’re provided with, based on the details you submit. Car dealers and independent valuers may be able to provide detailed appraisals if that interests you.

Factors that can affect a car’s value

Below, you can find four of the primary factors that contribute to the value of a vehicle:


For the most part, cars are depreciating assets. The moment you drive your new car out of the dealer, its value immediately goes down, by as much as 12% according to CarChase. A vehicle’s year of manufacture is a significant factor in determining its market value. It makes sense that older cars wouldn’t be worth as much as the new models that supersede them.


Mileage refers to the total distance a car has travelled and is another major factor in determining the value of a used car. You can safely expect a car with lower mileage to be worth more than one with high mileage. Mileage is a direct reflection of a vehicle’s usage and can indicate its level of wear and tear.

Make and model

The make of a vehicle refers to its manufacturer, and the model refers to the product. For example, in the case of a Toyota Prado, Toyota is the make and Prado is the model. For elemental reasons, various makes and models may be especially popular amongst particular demographics, which can help them retain their value because of their demand. An example of this is the popularity of SUVs in Australia. There are also various makes of cars that commonly retain their value based on their reputation developed over years of delivering reliability.


The condition of a vehicle can affect its value, particularly as perceived by potential buyers. For example, a car with paintwork and interior in excellent condition is likely to sell for more than the same car with scratched paintwork and a worn interior. Mechanically speaking, a full service history shows that a vehicle has received its required regular and ongoing maintenance and can also help preserve its worth.

Add-on features and accessories

There are various features and accessories that can increase a car’s value. These may include a leather interior, a sunroof or a roof rack, for example. Typically, when insuring a vehicle, the market value may only include standard options as fitted. That’s where an agreed value comes in.

Market value vs. agreed value

When researching options for comprehensive car insurance, you’re likely to notice references to ‘market value’ and ‘agreed value’. Market value, as discussed, is essentially the price of a car in the current economic situation. The agreed value, however, is an amount that is decided upon after discussion between the insurer and car owner.

Like most insurers in Australia, at KOBA Insurance, we use Glass’s to source car values. Glass’s are automotive pricing experts that provide pricing and specification details for vehicles of all ages. During our quote process, we suggest an agreed value based on Glass’s data, as outlined above. It’s then up to you whether you choose to increase or decrease the agreed value. In doing this you’re agreeing on either a higher or lower value of the car, which increases or decreases your premium accordingly. The agreed value is ultimately the amount we’ll cover your car for (i.e., if it were stolen or a write off) during your policy period. The agreed value includes the standard options and accessories that are fitted to your car, as well as any modifications that we approve.

It’s essential to always check the Product Disclosure Statement before deciding on a policy, as this is where you can find specifics regarding what’s covered and what isn’t.

Consider KOBA Insurance

KOBA Insurance is an exciting newcomer to the Australian car insurance market. This means we can offer you a fresh, innovative approach alongside a well-established reputation. Pay as You Drive (PAYD) isn’t a new concept, but it’s one we’re looking to pioneer here in Australia. Offering connected pay-per-KM policies, KOBA aims to help low kilometre drivers to benefit from reduced premiums.

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Any advice provided on this site is general advice only and does not take into account your individual needs, objectives or financial situation. Terms, limits, conditions and exclusions apply. Before making a decision, you should carefully read the Product Disclosure Statement & Financial Services Guide (PDS & FSG), and the Target Market Determination (TMD), which are available at kobainsurance.com.au to help you decide if the product is right for you. If you purchase a policy, KOBA receives a commission, which is a percentage of your premium, and may be entitled to a profit share if certain thresholds are met in agreed periods. Please ask us for more details.