Almost everyone thinks that their car is worth more than what they are offered for it when they attempt to trade it in as part of the deal when buying a new vehicle. A new car dealer will always accept your old vehicle, but rarely will you get anything close to its retail value. Chances are you will get, at best, something approaching the wholesale value. It may appear that you are getting fair value for your car, but in the end, the dealer has simply raised the selling price on the new car to compensate for the amount he is willing to give you on your trade-in.
The lesson here is to know the value of your car before attempting to sell or trade.
How do you know the value of your car? Well, a good start is to do some research with Kelly Blue Book, the industry standard for assigning value to used cars. Every used car is assigned a retail and wholesale value based on a number of factors such as age, condition and resale value. Vehicles are classified as being in excellent, good, fair or poor condition and their value is higher based on how the car measures up to a series of evaluating questions.
The exterior condition is evaluated for any dents, scratches or blemishes to the paint job? Mileage for the age of the car can either add to the car’s value (if it is below the average) or diminish the value if the car has excessive miles. Options are considered and things such as power windows, power seats, upgraded stereo system and perhaps a sun roof will boost the base price of the vehicle. The condition is the main determinant of the vehicle’s worth. Bald tires, air conditioning that does not work, worn brakes and other deficiencies will quickly reduce the value and cause the car to move from excellent condition to a lower grade such as fair or poor.
You will find a retail price – that is the price you would expect to pay if you were a buyer of the car and also a wholesale price – the price you would expect a Dealer to offer you on a trade. The retail price is always higher than the wholesale price.
So, the question is, how much can you get for your car? Well, you can never get more than you are asking for, so when selling a car, always ask for more than you are willing to accept. This will give you room to negotiate and make a sale. Selling the car to a private party almost always will work out better than trying to sell/trade to a Dealer. You should prepare your car by doing some cosmetic care such as cleaning the interior, washing and waxing and making the car look as good as possible. It may pay to do some minor repairs before attempting to sell.
Finally, don’t be over anxious, have a figure in mind and take some time to entertain offers. If you know the value of your car, you will know when you have received a fair offer.
- Whats My Car Worth?
- What Is My Car Worth To Sell?
- How Much Can I Sell My Car For?
- What Is My Used Car Worth?
- How to Bargain for a New Car?
