How Can I Determine the Real Value of My Car?
No matter how attached you are to your car, there will probably come a time when you need to sell it. Maybe you need an upgrade, or your old reliable ride is no longer so reliable. At this point, you will need to find out how much your old car is worth. Here’s how to do it.
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Dear Lifehacker, I’m not exactly a savvy salesperson, but I need to sell my car. I know how much I paid for this and how long I have had it, but I don’t know how to translate that into the price on the label. How can I find out how much my car is worth?
Regards, Sticker Shock
Dear shock,
Determining how much your car is worth is not easy, but it comes down to how much you can get someone to pay you for it. While every vehicle that works has a certain level of intrinsic “value” (it can get you from one place to another, which is worth something to someone), how much does it cost to negotiate between you and the buyer. If you can get someone to pay you $ 500,000 for your clunker, then it will cost $ 500,000. (You won’t, but this is how it works.)
There are many reasons why you might want to know the value of your vehicle, even if you are not selling it. If you calculate the amount of your car, then knowing how much it was worth before the accident can help you get the most out of your claim. You will also want to know how much it costs if you plan to use your car as collateral for a personal loan. And of course, if you buy it, overpaying is the last thing you need.
Get a cost estimate on sites like Kelley or Edmunds
Your first stop should be something like Kelley Blue Book or Edmunds . These services have been around for a long time and they have a long history for determining the value of your vehicle. They will take you to the ball park without much hassle.
Please be aware that these values cannot be tied to actual vehicles or vehicle sales. Kelly, for example, determines the value of a car based on the car’s starting price when it was new, market conditions, what people are looking for, and many other factors. However, they do not analyze all used car sales (it will still be impossible to track them all). So while the KBB value may be very similar to what you would pay in a used car showroom, you probably won’t get the same amount for an exchange or even a private sale unless you prove it costs that much. …
Find ads about similar vehicles
Unless you are dealing with very old or very rare cars, there is probably someone selling a car that is very similar to yours. Search used car listings in your area for cars of the same make, model and year as your car and find out how much others charge.
If you are dealing with a total loss insurance claim, this will be the best option to prove the value of your vehicle. The purpose of the insurance is to restore health in the event of an emergency. You have lost your car, so your insurance must pay you an amount equal to the value of that car. Sometimes insurance companies relegate you in an effort to save money. You can submit lists of used cars to your insurance agent to prove that if you had to buy your car on the market today, that is how much it would cost. If the amount they are offering is significantly lower, it’s time to negotiate (although keep in mind that the factors described in the next section may affect the price).
Plus, if you’re selling your car yourself, used car listings are your chance to see what customers are looking for and reduce competition. Your car may cost $ 10,000, but if you are willing to accept $ 9,500, you can put your car on the market for that amount and become more attractive to potential buyers (and thereby affect the objective “value.” Of your car).
Finally, when doing your research, be sure to look at similar vehicles, not just identical ones. Knowing how much your exact year and car model is worth helps a lot, but buyers are probably not that picky. If you own a 2015 model car but a 2017 model costs $ 5,000 more, buyers looking for a 2017 car might be fine buying something a couple of years older if it saves them a ton of money.
Mileage factor, condition and additional services
Not all cars are the same year, brands and models are the same. Well, in fact, many are created equal because they work in a factory, but they don’t stay that way! Mileage is a huge factor in determining the value of a car. While some cars last longer than others, a car with less than 50,000 miles probably has much more life than a car with 150,000 miles.
Determining how much a car’s mileage will lower its value is not quite a science, and it depends a lot on the age of the car (the 2018 car with 30,000 miles was obviously going quite hard, while the 2007 car with 60 km on it probably , did not pass at all). However, in the United States, the average person drives between 12,000 and 15,000 a year. More than a year in which your car has been in service is likely to lower the cost even further, and less is likely to raise its price slightly. Again, take a look at what other similar cars are going to do.
Mileage is not the only thing that can affect the price of a car. Additional accessories like an audio system, sunroofs, a convertible, and any other neat things you have in your car can add value. Of course, the fact that you have an XM radio does not negate the fact that you drive your car 20,000 miles every year, but if your car has heated leather seats and an otherwise identical car does not, yours. should probably cost a little more.
Negotiate
If you’ve followed the last few sections, you have pretty much all the information you might need. Now raise that price. Remember, this is your car and you want to get the most out of it. The buyer / insurance agent / loan officer / whoever you deal with on the other side of the table will do their job to break him. Use your information as a basis to know how much your vehicle deserves, and don’t go below what you know you can get. From there, talk about it.
Promote all additional services. Talk about how great it is. If you’re selling to a person, try to appeal to what they want from the car and highlight those features. If you are trying to dispute an insurance claim, please indicate why your car is better than others on the market (less mileage in a year, better condition, fewer accidents before the accident in question). Some cars may have more value than others, but each car has a lot to offer. Even if it doesn’t work, it can be used for parts or scrap.
Ultimately, as I noted at the beginning of this post, your car is worth what you can get someone to pay for it. Some people prefer to get a modest amount of money up front if they can get it in cash, while others will hold out as long as possible to get every last cent. Once you know what your car is capable of and how much of those assets can be spent on the open market, how high you can climb, it all depends on how good your negotiating skills are .
Regards, Lifehacker
This story was originally published in 2013 and was updated on December 12, 19 to provide more complete and up-to-date information.