The following is a guest post.
If you’re unfamiliar with the process, privately selling your car can be confusing. How do you get the word out about your used car? How do you transfer a title? And most importantly, how do you figure out your used car’s value? It’s that last question, determining a car’s selling price, which gives people a lot of trouble. It’s a difficult question to answer because a lot of factors can affect the value of a used car. Read on to learn how to determine the value of your used car.
Consult the Kelley Blue Book (KBB). The standard for determining a used car’s value is the Kelley Blue Book, which is a comprehensive index of market value estimates based on the car’s make, model, condition and market demand. The KBB breaks down the condition of cars into the following categories: Excellent, Good, Fair and Poor. Visit kbb.com to get an approximate value for your used car as a starting place.
Research the used car values of similar vehicles. After checking the KBB, try sites like usedcars.com for additional pricing information. Do an online search for used cars like yours to find out how much they’re selling for in your area. You might find there’s a particular demand for your car model and the price is slightly higher than the KBB reports. Or it could be the opposite—a lot of people are selling a vehicle similar to yours, and the lack of demand is driving the car’s selling price below KBB value.
Vast.com, which hosts thousands of used car listings, can generate a graph that shows the average change in list price as mileage increases. Using this tool will help you zero in on the current selling price of your type of used car.
Make necessary repairs. If your car falls somewhere between two KBB ratings, such as ‘Good’ and ‘Excellent,’ consider whether making minor repairs would bump it to the next level. This will give you a clearer idea of how to price your car and a few selling points to give to potential buyers. Minor mechanical or cosmetic problems can make or break a used car sale since potential buyers may want to avoid the cost and hassle of putting money into a car they just purchased. Fixing any small issues may not significantly add to the value of your vehicle, but it could make it easier to sell your car.
Get car dealer quotes. The used car trade-in value you get at a dealership doesn’t always translate to how much the car is worth as a private sale, but an estimate can come with some useful information. Go to a few dealerships and ask them what your car is worth as a trade and, if they’ll tell you, as a private sale. Average the numbers to come up with your car’s approximate trade-in value. Remember, dealership trade-in values are based on several factors including the car you’re purchasing and the price the dealership thinks they can charge for your used car. This method is best when you plan to purchase your next car from a dealership.
If you buy a new car before or after the old one is sold, be sure to protect your new ride with insurance coverage. Compare automobile insurance quotes and coverage options to find affordable rates on the coverage you need.
Excellent timing. I am actually planning to trade my car in this weekend towards a new vehicle purchase. Thanks for sharing!
We recently bought a used vehicle – there’s a definite trend in people purchasing used vehicles, and demand at the car dealerships is high. Great information, Crystal – thanks!
I definitely use Kelly Blue Book, then check Craiglist to see if there are any similar cars in my area to determine price.
My future father-in-law lives on a busy highway. He always consults the Kelly Blue Book and also looks at what prices are on Craigslist and the like. He makes a killing on reselling motorcycles and old vehicles. He has prime real-estate to do so though.
Great advice! I sold a car somewhat recently, and Kelly Blue Book proved to be invaluable.
What a great idea! I definitely need this because our family is thinking to buy a new car in January, it’s like new things on new year kind of thing.
[...] Crystal presents How to Determine Your Used Car’s Value posted at Budgeting in the Fun Stuff, saying, If you’re unfamiliar with the process, privately selling your car can be confusing. How do you get the word out about your used car? How do you transfer a title? And most importantly, how do you figure out your used car’s value? It’s that last question, determining a car’s selling price, which gives people a lot of trouble. It’s a difficult question to answer because a lot of factors can affect the value of a used car. Read on to learn how to determine the value of your used car. [...]
[...] My University Money hosted the Carnival of Financial Camaraderie and included How to Determine Your Used Car’s Value [...]