Calculating the value of your car can be done in several ways. As a result, there are also several terms in circulation that can sometimes cause confusion, such as new value, current value, purchase price, and list price. In this article, we will limit ourselves to the latter, the catalogue value.
What is catalogue value?
Simply put, the catalogue value is the value of your car at the moment it is first put on sale as new. Every car has a certain starting value when it goes from the factory to the showroom. That is the value you see in advertisements: ‘Now from €12,995!’.
The catalogue value of the car is determined including all additional optional extras you choose, such as leather upholstery, climate control and an electric panoramic roof. The accessories that are already standard on your car, the so-called ‘factory-fitted accessories’, are already included in the value. This therefore concerns the options you choose yourself to make your car unique. Add the value of the extra options to the basic value of the car and you have the catalogue value.
What do you need the catalogue value for?
There are two organisations that would like to know the catalogue value of your car: the tax authorities and the insurance company.
Tax Authority
A new car generally has a lot of value. The Tax Authorities therefore see your car as part of your assets. It is therefore wise to declare your new car when you are doing your tax return.
If you have a company car, the catalogue value is the basis for the additional cost. The higher the catalogue value, the more additional cost you will pay. So it can certainly be more advantageous to choose a Smaller or cheaper car to drive.
Even for a company car that is used for business purposes, a company car tax contribution must be paid. Therefore, the fiscal value of the hire car is stated on every rental agreement.
Insurance company
Just like the tax authorities, insurance companies use the catalogue value as the basis for car insurance. Even if you buy a second-hand car that is 10 years old, the catalogue value often forms the starting point for calculating the premium. And here too, the higher the catalogue value, the higher the premium.
Calculate catalogue value
Or actually, it should say ‘calculate current value’ here. These are indeed two terms that are often used interchangeably. day value is the value of the car as it is now. In other words, including depreciation. To calculate the current value, you still use the list price. After all, this remains the starting point for your car.
On the internet, you can find various handy tools to calculate the daily value of your car. For example, that of the ANWB. What factors are important for the calculation?
- Make and model of the car
- Year of construction
- Fuel (a diesel engine is generally worth more than a petrol engine)
- Transmission (is it a manual or automatic car)
- Engine capacity (the higher the engine capacity, the higher the value of the car)
- Current mileage (fewer kilometres are better for the value, than many driven kilometres)
- Are you the first or second owner? (The first owner is always better for the value)
- Have you ever had any damage to your car? (logically, a car with no previous damage will be worth more)
Do you know the catalogue value!
As you can see, it's always good to know what your car's catalogue value is. On the website of the Red cell distribution width Can you quickly see the catalogue value of your car using its number plate?.
Would you like to know more about the calculation of the catalogue value? Leave a comment below!
