Very few drivers know it, but this figure can be very important. Insurers and experts are based on the market value to calculate the coverage and compensation that correspond to possible accidents, thefts or fires of a vehicle. It is a value that the Government stipulates annually in the Official State Gazette in a long list ordered by brands and models. The last published is Order of the Ministry of Finance and Public Function 1259/2022, of December 14.
In the fiscal field, the market value governs as the average sale price applicable to the Property Transfer Tax that drivers must pay when buying a second-hand car. In practice, it is a minimum price, which has nothing to do with the market value and for which only the characteristics and age of the vehicle are taken into account, without considering other conditions such as mileage or maintenance. However, just as it serves as a guide for insurers, this value can guide individuals when selling their old vehicle.
The market value is the value that the car had at the time before the accident occurred. In other words, the value it would have for sale today. This official figure is updated periodically and, when calculating compensation, insurers apply a reduction coefficient based on the age of the vehicle, in such a way that:
With these numbers, it is common for experts to declare a total loss of a vehicle that a priori can continue to circulate. This is because the reason for the repair exceeds the market value. On the other side of the coin, if you are entitled to compensation for an accident, the insurers will pay you an amount less than the actual market price of the vehicle.
The buyer of a second-hand car must pay the Property Transfer Tax. It is a tax whose management and collection are transferred to the autonomous communities. That is why, depending on the place where you reside or where the sale transaction is declared, you will have to pay between 4% and 8% of the market value, with some exemptions, in terms of taxes if You are going to buy a second hand car.
This value is the minimum applicable, that is, a car cannot be sold below that value. On the other hand, buyers who purchase a vehicle at market price must pay a higher Property Transfer Tax. If, in your case, you are an individual and you don't know what price to sell your car for, the tables by makes and models published by the Ministry of Finance will help you find out the official value of the vehicle.
