The price of the private party is what you hope to sell your used car. A private sale, if your used car is properly valued, will always earn you more than what a dealer offers you in exchange. However, you need to consider the time spent selling a used car yourself. Some cars retain their value more than others. According to kelley Blue Book 2020, the following cars have an exceptionally high resale value compared to their initial purchase price. However, the most important step in this whole process is to determine the condition of your car. This is a subjective step where you need to be as objective as possible. You can set an exact value for your used car without being honest about the actual condition. When buying or selling a car, it is advantageous to know as much as possible about the terms and expressions used. If you get the knowledge of your vehicle and the industry as a whole, you can be put at eye level. Here are some terms and definitions that are commonly used in the market and may be worth knowing. It`s a tricky thing to value a car for sale. The price is too low and you are making the wrong money to pay for your new car.
Rate it too high – whether due to emotional attachment or poor research – and you could make payments for your new and used cars at the same time. It hurts the wallet. It`s exciting to buy a car, new or used, but it can be stressful to get rid of your current car. That`s why most people take the path of least resistance and exchange their used cars. You want to avoid the hassle of selling it yourself. Whatever your decision, it is important that you know the true value of your car before starting negotiations about its price. There are two websites that can help you determine the fair value of your car: kbb.com and Edmunds.com. Both will give you the trade-in value of the car, its private sale value, and how much the dealer might expect to sell it.
This last price really shows the absolute highest value you expect for the car. No savvy car buyer will ever pay this price to an individual. There are three values for each used car: the trade-in price, which is always the lowest and corresponds to what a dealer pays you for your vehicle; the price of the private party that two individual buyers will negotiate; and the selling price for which a dealer hopes to sell a used car to another buyer. We will deal with the first two values (trade-in and private part) because we mainly deal with the sale of your car. You can get an approximate number by calculating the depreciation. These are industry averages that may not apply to some vehicles. The second your new car is driven out of the property, it loses about 20% of the price you paid. For the next 3 years, you can expect an average depreciation of 15% per year.
Around the 5th year, the depreciation slows down drastically. Retail value is the amount a prospective buyer can expect to pay for the vehicle when buying from a used car store. In most cases, the retail value of the car is higher than the purchase price if it was purchased by a private party. It`s also almost always higher than the amount you could get if you trade it, or if you do something like online title loans without inspection. A certified pre-owned vehicle will cost you at least 5-10% more. It may be worth it, depending on the guarantee offered. Keep in mind that certified pre-owned vehicles are only worth a higher price if they are certified by the manufacturer. Otherwise, certification doesn`t make sense, as explained in my section on understanding certified pre-owned cars. Whether you want to sell your car to a dealer through an exchange process or a private party, it`s important to know how to calculate the retail value of your vehicle.
Understanding the retail value of your car will help you put the seller in the driver`s seat (no pun intended). Selling used cars is a common practice. However, it is best if you manage negotiations and prices professionally. There are many factors that can affect the sales value of your used car. Some of these factors are relatively obvious and are what you might expect. Some brands and models are worth more than others. Different options for a car can also be worth more. For example, power windows compared to manual windows, leather seats compared to fabric seats, larger engines, etc. will all be worth more. You might be tempted to skew your prices a bit when you see the differences in what you can charge based on the condition. Don`t do that. Fraudulent behavior can have serious complications and nullify the benefits of trading.
It`s hard to admit that your used car falls into one of these categories – but you have to be honest with yourself. Look at these definitions and see if your used car belongs to them. However, if you are concerned about what you pay in retail, go to Set Retail Price. It explains how much you can expect when buying a used car at retail. Let`s look at a 2004 Chevrolet Malibu with 50,000 miles on the clock to show how high the price difference can be depending on the condition of the car. (Information from Edmunds.com.) Once you`ve ranked your car and found a price, add at least 10%. That will be your leeway. Now that you know what your car is worth, give yourself room for the price. The consumer will be the ultimate arbiter of the value of your car. Use these guidelines only to start the process – to your advantage. If you own any of the vehicles mentioned above, you`ll be in a pretty good position when it comes to selling your car. However, if your car isn`t on the list above, it doesn`t mean it`s worthless.
Follow the steps below to calculate the sale value of your used car. To further support your decision, ask a friend to inspect your car as if they were buying it. Use my used car inspection checklist as a guideline. ★ Take the three-star price and subtract the cost to put it back in that form to get a damaged price, according to Edmunds. Step 2: Make sure you have all the important documentation of your car. To correctly calculate the sales value of your used car, you need to note the make, model, year of production, engine size and any other relevant information of your car. Having the title and registration of your car at your fingertips, you can also make sure that the sale of your car goes more smoothly. The selling price is what you can expect for a used car from a dealership.
This price applies to used cars that are not certified as used cars. You pay a higher premium for these. In this article, we will help you understand how to calculate the retail value of your used car. This vehicle would be in exceptional condition in all respects. The engine works well and its maintenance records are complete. The tires fit together and have a lot of tread without uneven wear patterns. The interior and exterior are free of damage. The paint of the car has no defects and is free of excessive chips and bumps. The title is clear and the car can pass all the necessary local and state inspections. According to kbb.com, only 5% of all used cars fall into this category. Is your used car really better than 95% of its competitors? There is no point in reinventing the wheel.
I will keep my opinion simple and use stars. On this page we look at used cars in excellent and good condition. The next page deals with medium, rough and damaged used cars. This is probably the easiest step of all. .