How To Calculate The Resale Value of Your Car
If you have plans to sell your car, making sure you know the value of your car is vital to get a fair price for your used car. A vehicle’s resale is determined by a range of factors like the make of the car, model, mileage, the condition of the vehicle and more. Here are some essential things you need to know before accepting an offer on your car.
First, you need to understand the lingo and what the different values of your car mean by definition. When selling your car you should know the book value, trade value and retail price of your car.
Book Value: The book value is price guideline that the automotive, insurance and car finance industry uses to arrive at an approximate value of your car. The book value typically refers to the prices published in the Transunion Auto Dealers’ Guide, which is used as a base pricing instrument. However, there are still other factors that affect the selling price. Factors such as the condition and history of the car, mileage, the state of the economy or inflation rate and more.
Trade Value: The trade price or value is what a dealer might be willing to pay for your vehicle they plan to sell. It’s also the average an owner can expect before an actual inspection of the car. There can be confusion around this as you may think that the book value is what you can sell your car for but the trade value is the price you can actually get.
Retail Price: The retail price or replacement value is the amount that the dealer can sell the car for or the highest amount that the car could be sold for based on its make, model and condition.
What Determines Car Resale Value?
You will need to gather some information on your vehicle to understand its real value. If you want to know what your car is really worth you will need to consider these factors: Make, model and year: Find out the make, model and year by checking in your owner’s manual if these are correct.
Vehicle upgrades or features: Does your car have optional extras, like mag wheels, a sunroof, tow bar or a roof rack? Ask yourself what upgrades your car has, such as all-wheel drive, power steering or anti-lock brakes. All these things can add value to your car.
Mileage of the vehicle: The lower the mileage on your vehicle the higher the resale value. You can get your mileage directly from your speedometer. This, along with the vehicle condition, are two of the most important factors in valuing your car.
Condition of the vehicle: The better condition, the better the price you will get.
The popularity of the car model’s brand: If your car is a sought-after make and model you will be more likely to get a good asking price for it.
Car’s accident history: Has your car been in any accidents? This will of course lower the value.
Service history of the car: Have you kept up with regular services? If so, you are bound to get a better price.
Consult a Pricing Guide
If you want to find out what your car is really worth you can use TransUnion’s Auto Dealer’s Guide online. This guide contains the retail and trade values of every make and model of car on the market. TransUnion’s valuation models analyse the data and calculate an average value for every vehicle.
There are also many car value pricing guides available online that are relatively easy to use, and will give you an estimate of what your car is worth.
If still you’re not sure exactly what your car is worth, or simply want the experts to do the heavy ‘calculating’, then let us help you determine the best price you can get for your car by contacting us at Group1, and we will give you a price that we would buy your car for.
