How to Verify Used Car Price?

There is a huge scope of doubt and confusion when it comes to setting a value for used cars. A new car comes with a factory invoice and an MSRP, Manufacturer’s Suggested Retail Price, which means the price is comprehendible. But the situation does not stay the same for used vehicles. Used car prices depend on a lot of things. So knowing how to verify a used car’s price is very important, whether you are the one buying or selling.

How Are Used Car Values Calculated?

As used car prices purely depend on the perception of the customer, the value cannot be pinpointed that easily. So the trick is to gather multiple points of view and calculate a refined average. Car buyers build their perception based on the car incentives, mileage, make, model, year, age, condition, and other features.

Based on the availability and the demand in the market, the price can shift dramatically. A well-running car might not sell at as high a price as a much more popular model at a certain point in time. Also, special features and incentives play a big role in attracting customers, such as a Certified Pre-Owned vehicle will have a higher perceived value than an ordinary used car.

What Type of Values Should You Use?

Depending on your requirements, the value type may differ. For example, a customer buying a used car for personal use will look for certain benefits that a buyer with a rental business might overlook. No matter whether you are buying a used car or selling it, there are a few different types of values.

Car Trade-in Value

This value refers to the amount the dealer is willing to pay to the seller of a used car, and in exchange, the seller buys a newer car from the dealer. The trade-in basically is a way of inputting your old car towards buying a new one. The trade-in values get adjusted in the final cost of the new car. And the same old car may be sold again at a retail value.

Private Party Value

Buying a used car from a private party as an individual buyer can be very profitable for both parties. As the dealers work as a middleman, the private party value excludes the dealer costs and maintains a relationship directly between the buyer and seller.

How to Verify Your Used Car Price

Verifying the price of your used car is mandatory if you want to get a good return value on your car. On the other hand, if you are a customer and want to buy a used car for yourself, you need to have a general idea about car valuation to successfully negotiate the price.

Do Your Research on Car Value Guides

First, you need to understand how used cars are calculated for their worth. As the price of a used car depends on the dealer’s costs and the actual price of the car, it can be very vague. Whether you want to buy or sell a used car, do your research on different platforms to learn about the car value guides.

Choose a Type of Value You Want

What type of party you are selling to or buying from affects a lot of the pricing issues. For example, if you go for a trade-in, the transaction process will completely differ from selling to an individual buyer. CPO cars will get a higher monetary worth as well. Dealer retail value is supposedly much lower than private party value.

Consider Vehicle Condition

Next comes the issue of the car’s condition. Two used cars of similar make, model and mileage might not be the same amount based on the condition of the car. The perceived value of the car will be the subjective view of the buyer and seller. A seller can deem the car of a higher quality, whereas a potential buyer might not think so based on the offered features of the vehicle.

Get the Car Appraised

To get a better value as a seller, you can get your car professionally appraised to check the car’s condition. This will help you understand the market value of your car. On the other hand, as a buyer, you might want to follow up on the seller’s claim and ensure the car’s worth through a proper appraisal. This will prevent any bad decisions.

Websites That Can Correctly Value Your Car

In this new era, you do not need to go from store to store to check the value of different cars to get an understanding of the market. There are a lot of well-known online platforms that do the calculation for you so that you can just reach out for the information. Among all these websites, there are a few that have made a good name for themselves.

Kelley Blue Book

For the past nine decades, KBB has been successfully calculating the car prices for different types of vehicles. With the vast inventory of cars, they have acquired a huge amount of data that helps them create an almost foolproof database to value your car accurately. KBB also offers free professional appraisal and evaluates market trends, demand on the economy, and the car’s condition to come up with a result.

Edmunds

Edmunds is also a very reputed name in the world of the used car market. You can be sure to get the best value for your car. The process is very simple as well. All you need to do is put in your Vehicle Identification Number (VIN), license plate, or the model of the car. Then you will need to complete a form asking your questions about the condition of the car.

After that, Edmunds will present you with three different estimations for different types of values to be chosen from. Edmund also provides a breakdown of the pricing so that you can see how the car is being valued. This gives you extra knowledge about the pricing and what makes or breaks a car’s worth.

AutoTrader

A United Kingdom-based platform, AutoTrader has been working to establish good relationships between buyers and sellers when it comes to automotive transactions. AutoTrader collects data from the market and successfully evaluates the car to give a suitable worth of the car. You need to sign in to the website and enter the details of the car you are curious about. The website will give you the part-exchange amount of the car.

NADA Guides

The National Automobile Dealers Association, or NADA, has a guide that can show the car’s retail and wholesale value in the current market. You can ask for an appraisal, and NADA will help you get an estimation through virtual options. If you enter your car details, NADA will show you similar cars and give you an idea about the current market worth of the car. NADA Guide has an extensive data pool and includes the analysis expertise of J.D Power. It can provide you with a price breakdown and also the cost of buying and owning your own vehicle.

Prepare Your Car Before Selling

A lot of us disregard the car’s take-care after we decide that we will be selling the car. Many people keep their cars neglected out on the sidewalk and expect a high price when selling the car. Even a used car will need some make-overs to be done to attract better buyers and offers.

• Clean the interior of the car to give off a better image. A cleaner interior can portray the care history of the owner, which can affect the quality perceptions.
• Improve the exterior outlook so that the dents, scratches, and dirt cannot be seen at a glance. Giving the car a proper wash will increase the outlook by a whole lot.
• You can replace any broken window and windshield pieces to avoid giving a broken-down image. If the buyer has to put money towards the beautification of the car, the price will drop automatically.
• Clean up the oil tank, so there are no dirty old stains and clogs.
• Do some small low, expensive repairs to boost the price value of the car. Cleaning the engine can also increase the value of the car.

Conclusion

If you are thinking about selling your old car, you need to have basic information about the evaluation of the car. If you know the true worth o the car, you cannot be scammed by the dealers. The same goes for a buyer. Buying a car is very expensive. Someone who has no idea about the general pricing process can easily lose the negotiation stage.

One flaw in decision-making can cause big harm to long-term planning. The owners always have a strong impression of the car’s worth. But the over-inflated ego can also cause harm as it can cause a loss in the number of potential buyers. So learn more if need be to get the best value for your car transaction.