What Is the Going Rate for a Used Car?

Before you negotiate, find out what the vehicle’s cash value is.

Whether you’re buying from a dealer or a private seller, it’s critical to know how much money a vehicle is worth right now. This is determined by a number of things, including the age, mileage, condition, trim level, optional equipment, and even where the automobile is being sold. The two prices for any used car are retail and wholesale.

Retail Price

You may save hundreds, even thousands of dollars by trading in your vehicle. However, if you trade your automobile in at a dealership’s used car lot, you will be paying the dealer a higher price for it than he or she would get from selling it privately. The retail cost is also greater than the price you’ll receive for your trade-in because it includes a profit margin for the dealership.

Wholesale Price/Trade-in Value

This is the amount that a dealer would receive for a vehicle in trade, which he or she would most likely sell to someone else for a profit. The trade-in price, as you can imagine, is far lower than the retail price, and it’s hard to imagine finding a used automobile for this cost.

However, if you’re unsure whether to trade in your current car or sell it yourself, it’s a number you should be aware of.

A vehicle may command several costs in the wholesale sector of the business. The dealer offers a customer a trade-in price, which is another. When one dealer sells a car to another, there is a dealer-to-dealer price. If the automobile is sold at a wholesale auction, which is common, there is an auction price. Dealers and brokers buy auction automobiles for resale and make profits throughout each stage of the process.

Find the Vehicle’s Market Value

The book value of a used car is the first step in determining its real worth. This is the base retail price that may be found in pricing guides and used-car pricing websites for a vehicle. To obtain a more accurate number, you must consider any options as well as kilometres travelled and conditions. Most sites allow you to do this online, after which send you revised numbers.

You could also search online or acquire printed pricing guides from Consumer Reports, Kelley Blue Book, the National Automobile Dealers Association, and VMR. Printed handbooks are frequently available at libraries. When you begin bargaining with prospective purchasers, checking several sources will allow you to obtain additional pricing information.

What Are the Sellers Looking For?

Localizing your search, whether it is by checking the classified and dealer ads publications or some of the online used-car selling sites, might provide you with a more precise fix on a car’s value in your area. It might be difficult to distinguish private sellers from hidden dealer advertisements at times, but it is a good place to start. Look for cars that are comparable to the one you’re thinking about in terms of the model year, mileage, trim level, options, and condition.

You may also search online for used cars by visiting such websites as Autobytel, UsedCars.com, AutoTrader.com, or eBay Motors. You can narrow down your search to your particular region and get a list of the vehicles for sale along with their prices right away on the internet. The pricing in other areas may differ from that in your region.

You can use what you’ve learned here to figure out how much other sellers are asking for similar cars. You may utilize this information to lower your bid on the vehicle you want to buy. Keep in mind that the advertised prices are the asking prices, not the actual costs. Assume that all such bids are negotiable. The ability to examine completed sales and see actual sale price is one benefit of eBay.