Index
What is a car's depreciated value?
What is a car's market value?
What factors determine a car's market value?
How is a vehicle's market value calculated?
What are the key differences between depreciated value and market value?
12. Additional resources
Actual cash value and market value in a trade-in
When actual cash value is higher than market value
Dealcar and valuation with real-time market data
Frequently asked questions
What is a car's depreciated value?
A car's depreciated value refers to the amount you would receive if you decided to sell it on the used-car market, provided it has not been declared a total loss. In other words, it is the estimated price that could be obtained for the vehicle under normal selling conditions.
Actual cash value represents what the owner would have to pay to acquire an equivalent vehicle on the market, taking into account the age, use and condition of the damaged car. It's an objective value, calculated using actuarial tables and specialist valuation tools (Eurotax, Schwacke, DAT), which doesn't depend on supply and demand at a given moment but on statistical parameters from the sector.
From this reference value, a depreciation percentage is applied according to the vehicle's age. For example, a car that is 3 years old could have a depreciated value of 67% of the reference value, while one that is 8 years old would have a depreciated value of 28%.
What is a car's market value?
Market value is the price at which that specific vehicle would sell on the market at that moment, between a buyer and a seller under normal conditions. It's a dynamic value that depends on supply and demand at that moment: the number of similar cars available on portals, the season, sector trends (electrification, ZBE restrictions) and the specific condition of the vehicle.
Unlike actual cash value, market value isn't calculated by an actuarial table: it's set by the market itself. The most direct reference is the price at which comparable cars (same model, year, mileage and equipment) are selling on the active portals at that moment.
Market value is the figure the dealership needs to make purchasing and selling-price decisions.
What factors determine a car's market value?
Several factors influence the calculation of a car's market value, including:
Actual cash value is retrospective and statistical: it calculates what the car would be worth based on depreciation tables and historical sector data. It doesn't consider the state of the market at that particular moment or the vehicle's specific features beyond make, model, year and mileage.
Market value is current and empirical: it reflects what the market is willing to pay today for that specific car, with its particular equipment, history and presentation. An ex-renting car with a full official service history has a higher market value than the same model with an unknown history, even though the actual cash value of both is identical because the actuarial table doesn't capture that detail.
In rising markets (when used car prices go up), market value can be significantly higher than actual cash value. In falling markets, the opposite can happen.
How is a vehicle's market value calculated?
Actual cash value comes up in a dealership's operations mainly in two situations. The first is when the dealership has its own stock insured and needs to know what the payout would be if one of its vehicles were a total loss. The second is when a buyer has their own car insured and the insurer's payout doesn't cover the price at which the dealership valued it as a trade-in.
One of the most common ways to calculate market value is to analyse the prices of similar vehicles for sale on the used-car market. Websites specialising in car buying and selling, as well as online adverts and local listings, can provide a good reference.
Read also autobiz.
What are the key differences between depreciated value and market value?
Although both concepts refer to the estimated price of a vehicle, there are some key differences between depreciated value and market value:
It is essential to know and understand both concepts in order to make informed decisions and avoid unpleasant surprises. Before taking out car insurance or carrying out a buying or selling transaction, make sure you understand how these values are calculated and how they can affect the final price.
In addition, do not hesitate to use online tools, professional appraisal services or automotive industry experts to obtain accurate estimates of your vehicle's depreciated value and market value.
12. Additional resources
The market value of a specific vehicle is obtained by cross-referencing the prices of comparable cars currently listed on portals. A comparable car is one with the same make, model, version or trim, year of registration, fuel and similar mileage (usually within a range of 15 or 20%).
Read also how to measure the real performance of portals in your dealership.
The reference shouldn't be the highest listed price: it's the median of active listings for cars in similar condition. The highest price may be a listing that's months old and hasn't sold precisely because it's above the market.
For vehicles with very specific equipment (high-value extras such as a panoramic roof, premium sound or advanced driver assistance), market value can be higher than that of standard comparables, especially in segments where that equipment matters to the buyer.
Market radar tools like those built into dealership management platforms give access to that figure in real time without having to search portals manually.
Check the Ministry of Finance vehicle valuation tables.
Actual cash value and market value in a trade-in
The trade-in is the scenario where confusion between the two values causes the most conflict. An owner who wants to hand over their car as part payment when buying another arrives with an expectation of their vehicle's value that's usually based on one of three references: the highest price they've seen on a portal for a similar car, the price their insurer gave them as actual cash value, or simply what they think it's worth because they know it well.
The dealership values the car based on current market value, which may differ from any of those three references. If the market for the model has fallen in recent months, market value may be below actual cash value. If the car has specific features that add value, market value may be above actual cash value.
Valuing a trade-in correctly requires up-to-date market data for that specific vehicle at the time of the transaction, not an estimate from memory or a static table. A valuation that's too low damages the relationship with the customer and can make the sale of the new car fall through. A valuation that's too high compromises the dealership's margin on the trade-in.
See also how to do dynamic pricing with market data at a dealership.
When actual cash value is higher than market value
Although in most cases market value is equal to or higher than actual cash value, there are situations where actual cash value can be higher.
When the market for a particular model has fallen due to external factors, such as ZBE restrictions that reduce demand for diesel in cities, market value can drop faster than actuarial tables update actual cash value. An old diesel with a B label can have a market value significantly lower than the one the cash value table would calculate based on historical data.
See also how LEZs and emissions regulations affect stock value.
It also happens with discontinued models: when a manufacturer stops producing a particular version, actual cash value can stay stable because the table calculates it from that model's historical data, while market value may fall if there's a lot of supply of the model on the second-hand market or if demand for that profile has dropped.
Dealcar and valuation with real-time market data
Dealcar's market radar shows the market price of any vehicle based on active portal listings in real time. That lets you value trade-ins and assess buying opportunities with current market data, not with static tables that may not reflect current conditions.
You can see how it works at dealcar.io/tasacion or request a demo at dealcar.io.
Frequently asked questions
Can an insurance customer claim market value instead of actual cash value?
In some cases yes, depending on the policy terms and whether market value is higher than actual cash value at that moment. Some insurance policies include "market value" clauses instead of actual cash value, especially fully comprehensive policies. The owner should review their policy terms and, if market value is higher, they can argue that difference when negotiating with the insurer.
Does a car's actual cash value change if it has extras or additional equipment?
Marginally. Actual cash value tables take into account some high-value extras (sunroof, navigation, driver assistance) but more conservatively than the market. Market value better reflects the real impact of equipment on the selling price, especially for extras in high demand in the relevant segment.
What tool does the insurer use to calculate actual cash value?
Most insurers in Spain use Eurotax or Schwacke, the two main vehicle valuation tools in the European market. Some insurers also have their own in-house tools. The owner can get an estimate of their vehicle's actual cash value by checking directly on the Eurotax website or through their insurance broker.
