How to Find Out the Original Price of a Used Car?
Buying a used car is a game of skill and luck. You need to be skilled with your negotiation and research to get the best deal, and you also need a bit of luck to be buying the right car at the right time. But finding out the original price of a used car is difficult as there is no fixed Manufacturer’s Suggested Retail Price or MSRP for used cars. You need to use your own wit and knowledge to get the best price.
Many people mostly go for used car purchases to save money. They often do not want to take auto loans as you would then have to drag the interest amount for a long time. This is why finding the actual price of the car is important. As most of us buy a car only a few times in our lifetime, it is acceptable that we will not be experts in buying and selling cars. But gaining basic knowledge is a must.
Used Car Market Situation in 2023
During the pandemic, the production of new cars got stopped, and even up to 2022, the production was stagnant due to the crisis of chips in the market. But from the midpoint of last year, the production has fought on, and before long, it is estimated that the inventory of new cars will be replenished. The high price of used cars will be lowered with the supply of new cars, and this is a big opportunity for buyers to buy better quality used cars within their budget.
How to Find the Original Price of Used Cars
As a used car’s worth does not always reflect the model, brand, or elements, it is difficult to put a price tag on it. Someone who has worked with cars for a long time and understands which features makes or breaks a car, only they can somewhat get an idea about the actual value of the car. But for both buyer and seller, knowing the original price of a used car is important.
Find the True Value of the Car
There are a lot of websites nowadays where you can find out the true market value of the car. Edmunds true market value is always accurate at an acceptable range. Among the other websites, Kelley Blue Book is one of the most popular. By inserting the Vehicle Identification Number (VIN), you can find the current market value estimation for your car.
Getting a fair price deal when buying a used car is very important as a lot of the states in the US apply sales tax on the car price. If the price of the car is high, you will have to count extra money towards the tax. Aside from the price calculating platforms like Edmunds, consulting different online used car buyers and sellers, such as Zippy Cash for Cars, can also give an idea about the pricing range of similar cars with similar conditions.
Find the Car’s Dealer Cost
Dealer cost refers to the amount the dealer spent to make the car stand in the market. That can mean the base amount paid for acquiring the car, as well as any repair cost that was put behind the car. As a buyer, if you can find the dealer fees, it can give you an idea about how low the dealer is willing to go in the negotiation.
Compare the Condition
The true worth of the used car depends on the condition of the car. Based on the year, age, model, and brand of a car, the value may vary. For used vehicles, the consumer-perceived value is the most common. Someone looking for a tough, masculine car will not want to pay any money for a family sedan, and the same goes for a family guy. Also, Certified Pre-owned vehicles have a different type of customer base who are willing to pay extra money for a certified car that can provide a warranty, just like a new car.
Analyze the Market Demand for the Car
Another aspect of the pricing of used cars is the demand in the market. If a car is too popular among customers, the market will follow the basing rule of supply and demand. To cope with the demand, the dealers will increase the price of that car, even though the amount may not co-inside well with comparable vehicles of similar features.
What Do the Used Car Prices Depend on?
All things considered, the main question is: what exactly are the criteria for deciding used car prices? With the idea of customer-perceived value, the pricing system gets blurred. Anyone can be subject to the price of a car. As the dealers will try to get the highest price possible off of a used car, the buyer will try to lower the price as much as possible. But in the end, the main deciding points are a few.
Private Seller VS. Dealer Retail
What type of value you choose matters. If you are a seller trying to sell your own old car, then selling to a private party and a dealer will be different. Dealers make a living in transactions of cars, making it hard to win against them in a battle for a fair deal. On the other hand, a private buyer will be more open. Also, not having a middleman in the transaction will help in getting more out of your old car.
The same goes for the buyer as well. if you are a buyer looking to buy a used car, private sellers can be a good place to start. But the problem here can be the fact that you need to be very knowledgeable about the fair prices of cars. Also, you will need to fix any minor to major issues with the car. Those costs need to be deducted as well. On the other hand, a private seller will expect to sell their car in cash, whereas dealers provide trade-in values and loans.
Brand VS. Trend
Buying a used vehicle is more dependent on availability and customer demand. If a car is on trend and has a high demand among customers, the car will likely be sold at a higher rate than normal. That same car may lose its cost with the reduction of demand. Even though reputed brands matter a lot in the case of used car pricing, a good brand does not always mean a good case as used cars are often repaired and rebuilt to the point that it no longer resembles or holds the parts of the original car.
Features VS. Condition
In the used car market, the condition of the car is very important. Potential buyers will look towards the type of car they want and try to negotiate the prices to get a deal within their budget. They definitely look towards getting the car in the best condition. Especially if the car has all the required features. And features also play a great role.
Know Your Car’s Worth
When it comes to new cars, the manufacturer gives a sticker price for each car. A range that can be consulted when negotiating. Even though this amount can change based on demand and supply shortage as well, the difference is not as drastic as used car prices. It does not matter if you are looking to buy a used car for yourself or if you are trying to sell your old car, you need to know the car’s worth to drive a proper bargain.
The asking price for used cars is always higher than the actual worth of the car. Dealers know that the value of a used car can differ with each customer, so they keep a scope for price negotiation to get the price adjusted. Because of the potential of getting more profit, many dealerships push for more sales of used cars. But if the customers lack the basic knowledge of valuing used cars, they will definitely fail to get a good deal.
Conclusion
Buying and selling of used cars has been going on for a long time. But with the rising economy, ordinary citizens are more inclined to buy a used car instead of a new one. There are reasons behind this decision that differ for each individual. But whatever the reason may be, to properly take advantage of the millions of opportunities in the used car market, having basic information about used cars is a must.
As time passes, there is a high chance of the used car market getting more and more influential. The government also suggests people buy used cars to reduce the amount of air pollution from automobile industries. Also, using the same cars again and again means better use of resources and lesser dumping of material into the Earth. So it has become a necessity to understand the original price of a used car so that both the buyer and the seller can be happy with the transaction.
