If you are thinking of selling your automobile, one of the first questions to cross your mind is simple: what is it worth? Technically, a car is worth whatever someone is willing to pay for it, but that is not much help if you are trying to decide on a realistic asking price. Further, most people making a vehicle purchase do not have much cash lying around and want to finance, and banks or loan companies demand that a vehicle’s value be determined before making a loan. If you are selling a vehicle, it is a good idea to find out what the market value of your car is before putting it up for sale, no matter what asking price or selling price you determine in the end.
There are several ways to find out the value of your vehicle, but the process can be somewhat confusing. There are three prices that a vehicle will carry: book value, trade-in value, and retail value. The price you receive will depend on the conditions under which you sell the vehicle.
Many people choose to trade in a used vehicle when purchasing a new vehicle. This can be confusing, as many dealers, in order to close a sale, will inflate the trade-in value while simultaneously inflating the price of your new car to cover the difference. It is in the dealer’s best interest to finance as large a sum as possible with their in-house lenders, who want to collect more interest on the loan. If you are trading in a vehicle, find out the market value of your car, then ask for a trade-in price after you have determined the price of the new car. This prevents the vehicle dealer from inflating the trade in and the asking price of your new car.
Retail value of your car is an artificially inflated price that reflects the car dealer’s cost of purchasing the vehicle before selling it to you along with any markup the dealer adds. It is highly unlikely you will receive retail value for your used vehicle if you sell it yourself, although you would probably pay the retail price, or close to it, if you bought the same car from a dealer.
If you are making a private sale of your vehicle, you should find the market value, or book value, of your car and use it to determine your asking price. You can find the book value of your car easily by using one of a few internet web sites that offer this service, sometimes for a fee. Write down the year, make, model, and trim level of your vehicle, along with the mileage, and determine its condition. Be realistic: most used cars are not in “excellent” condition, and any body repairs or engine work needed will devalue the vehicle further. Once you have your information, try these websites: Kelley Blue Book, or Edmund’s. These sites are the industry standard for valuing used cars, and are also available in book form.
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- How Much is My Car Worth?
