The Bangernomics Valuation Model
If you're offered a 3 year old Mondeo, and want to know what it's worth, you just get a copy of Parker's Price Guide and look it up. But what about a 15 year old Sierra with one door a different colour from the rest? Or a 1988 Nissan Micra with 140K on the clock and two months' MoT left to run?
Banger buyers need a different kind of price guide. This is it. It's dead easy to use - you should be able to memorise it in no time. It's based on real prices as paid for real cars. It only really works on cars over 12 years old - anything younger still has some value just because of its age, but once a car passes its twelfth birthday, age is irrelevant, and condition is everything.
How does it work? For the car you are valuing, start with what it would be worth, in the same condition it is in now, but with no tax or MoT. This might range from £10 for a ropy looking old Fiesta (someone will buy it for spares, if it's cheap enough) to £500 or more for a tidy, original Golf GTI MK2.
Now add £30 for each month left to run on the MoT.
Now add the value of any road tax left on it.
Now deduct, pound for pound, the cost of any repairs that you know will be needed to bring the car into a fit state for you to use as daily transport. So if the front tyres are bald, deduct what it will cost you to buy 2 new tyres (or part worn tyres or remoulds, if that is your preference).
The figure you end up with is what that banger is worth. Here's an example:
"1986 Escort 1300, 85K, nice and tidy, runs well, 10 months MoT, 3 months tax, needs new battery."
You have a look at it - a straight unrotted motor with a decent stereo, as described in the advert except one of the tyres needs replacing.
Value with no tax/moT - £75 (it isn't rotten, and the Kenwood stereo must be worth £40 on its own)
Value of MoT - £300
Value of tax - £40 (give or take a few quid)
Cost of battery and tyre - deduct £50.
NBV (Net Banger Value) - £365. Sound about right?
Here's another one - "VW Golf 1800GL, 1986, 105K, 12 months test, 3 months tax, needs nothing doing."
Value with no tax / MoT - £150 (lots of new bits, very solid body but a few dents, just had a full service)
Value of MoT - £360.
Value of tax - £40
Costs to deduct - Nil.
NBV - £550
That was my old car - I advertised it for an optimistic £650, and let it go for £525 after some haggling. I'd originally paid £500 for it, needing a new autochoke unit - again, about right.