How to Determine a Car’s Resale Value

Imagine this scenario: You’ve bought a new car in Stuart, Florida, but rather than simply trade your old ride in at the dealership, you decided to wing it and sell it yourself on the private market. You snapped a few pictures and wrote up a solid description, and you’re about ready to post it online. The only thing that’s left to do is fill in the price.

As you stare at the blinking cursor on your computer screen, something dawns on you: You have absolutely no idea how much your car is actually worth.

This is all too common. Most people only have the vaguest sense of what their used car is actually worth; it isn’t something you usually have to think about. No worries though. Calculating a car’s value isn’t an exact science, but it isn’t rocket science either. Here are a few tips to help you get started.

Why Calculate Car Value?

Knowing how much your car is worth is helpful in a few key scenarios. First and foremost, it lets you know exactly what you have when you trade or sell, which allows you to set the proper price and also gives you some negotiation power at a dealership. It’s also incredibly useful when filing an insurance claim, as it allows you to get the right amount of money back. And maybe most importantly, it allows you to help offset the cost of your next vehicle. Use our trade value tool to see what your vehicle is worth, and then plug that number into our payment calculator to see what your potential buying power is.

When selling a car, correct pricing is key. Price it too high, and you won’t get any bites, but price it too low, and you could but out hundreds or even thousands of bucks.

As with many things, car value is kind of a moving target. It’s always changing based on the market, so the exact same car may be worth more or less money at different times, depending on how much demand there is.

It’s also important to note that there are different types of car values.

• Private party value: This is the base amount you can expect to get when selling to another individual, and it’s commonly seen as being the closest to the “true value” of the car.
• Trade-in value: This is what you’ll get when trading it in at a dealership. It’s usually lower than the private party value because the dealer will have to refurbish the vehicle themselves.
• Retail value: This is the price you can expect to find a dealership selling it. It’s usually higher than private party value because the dealership will have detailed it extensively and fixed any glaring mechanical issues.
• Wholesale value: This is the price that a dealer would pay to buy a new car from the manufacturer or a used car from an auction.

How is Car Value Calculated?

There are a few key factors that go into car values:

• Year, make, and model: If you don’t already know it, this basic information can be found in the owner’s manual, or by decoding the VIN.
• Trim: This refers to the specific type of model. Different trims are associated with different options and features, which may raise the overall value.
• Mileage: One of the biggest factors in determining depreciation. All other things being equal, the higher the mileage, the less a car is worth because it indicates more wear and tear.
• Condition: The general shape of the vehicle. Different valuation calculators use different scales and criteria to assess overall condition. Vehicles with broken components or any mechanical and aesthetic issues will be worth less.
• Color: Even the car’s paint can influence resale value. Certain colors like black and white are more common, but rarer colors may be more highly sought after on certain models.
• Region: Your specific location can have an effect on car value. Some vehicles experience higher demand in different cities or states. For instance, buying a used car in Port St. Lucie may be cheaper than buying one in the middle of Wyoming where the selection isn’t as good.

Using Car Valuation Calculators

One of the best ways to find the value of your car is to use a reputable valuator. There are multiple sources online that will give you an estimate of how much a car is worth. These tools work by taking your vehicle info and aggregating it with other valuations.

Many people only use one of these sources when determining their car’s value, but it’s a good idea to try at least a few of them out, because each one will give you slightly different information.

Kelley Blue Book

Often recognized as the original consumer car valuation tool, KBB has been doing its thing for nearly a century. If you hear someone say “Blue Book value,” this is what they’re referring to. Kelley Blue Book offers a range of value for both trade-in and private-party sales. They also have an instant cash offer option, which you can redeem at a participating dealership if your car qualifies.

Edmunds

Another resource that’s been around for quite some time, Edmunds tends to ask slightly more specific questions about the car’s condition, which can give a more accurate valuation. It also gives you a comprehensive breakdown of what affects your car’s value, and can even provide a pricing history over time.

J.D. Power/NADA

The National Auto Dealers Association has been kicking for even longer than KBB. A few years ago, they handed valuation off to J.D. Power. Their tool primarily focuses on trade-in value, but the site also has extensive consumer ratings, and allows you to check your vehicle history report.

Consumer Reports

CR is a solid source of automotive knowledge, and they have an easy-to-use tool that utilizes Black Book to determine the fair market value of your car.

Black Book

Generally, Black Book is only used by dealers and is their primary source of car valuation. Consumers can use it, but it costs a monthly subscription fee.

Get the Most Out of Your Car

If you’re on the hunt for a new set of wheels, skip the hassle of selling your old car yourself and stop by Treasure Coast Toyota of Stuart, your one-stop shop. Or, check our website to see if you qualify for a KBB Instant Cash Offer in South Florida. We also have plenty of gently used models under 25k near Palm City and Jupiter.