How is a car’s value determined? Many car owners don’t consider their car’s value on a day-to-day basis, but when it comes to selling or trading in the vehicle, it’s value becomes the main focus. Online valuation calculators such as Kelley Blue Book, Edmunds, or NADA can be good places to start for the initial estimated market value. However, there are three key factors car owners need to consider when determining valuation: condition, method of sale, and understanding the current market.
The value of your vehicle largely depends on it’s condition and running quality. This includes the exterior, interior, and mechanical condition. Any paint, body, interior, or mechanical damage will negatively impact the value of the vehicle. Detailing the inside and repairing any minor damages, interior or exterior, will increase both the appeal and worth of the vehicle. A detailed assessment by a mechanic will help you identify any minor repairs needing to be made, as well as give you a more realistic estimate of your vehicle’s market value. In addition, a recent mechanical evaluation could give your potential buyers peace of mind.
The method of sale can also alter the value of a vehicle. There are three main methods when it comes to selling your car: trade-in, private sale, and auction. Trade-ins, or selling to a dealer, will generally result in the lowest valuation of your car, due to dealer costs and profit margins. This value is determined after the vehicle has been assessed and the resale price has been calculated, leaving less room for negotiation. There are benefits to trading in your vehicle, as it’s quick, convenient, and it’s a guaranteed sale. Private sales, however, will increase your car’s value, as price, negotiations, and target market are all determined by you, the seller. This value is typically calculated based on similar vehicles and current market conditions. While the process of finding the right buyer could be lengthy, it gives you the control of waiting for the right price. Auctions are another quick and convenient method of selling your vehicle, and the value will vary depending on the type of auction you select. While sales are not guaranteed, auctions attract a very specific target audience which could be beneficial depending on the type of vehicle you wish to sell. Although, selling at auctions does come with fees and little to no room for negotiation on value.
Lastly, it’s important to understand the current market and where your vehicle fits in that market. When it comes down to it your car’s value is whatever you can sell it for. Reviewing similar vehicles’ asking prices will help to determine your vehicle’s current market value. If your car is highly sought after in your area, this will raise your vehicle’s value. The market value of your car could vary depending on location, as your vehicle could be more or less practical in certain areas. Luckily, at Real Simple Car Loan you can sell to any buyer, anywhere.