How much is a Used Car Really Worth

Mar 25, 2016

How much is Used Car Really Worth?

To determine the worth of a used car, it all depends on which used car is been valued. There are various factors which are considered when determining the worth of a used car.

  • Condition - The present situation of the car is essential when determining the worth of a used car.In order to determine condition of the vehicle focus on three main points:
    1. Exterior: Paint and body, minor scratches, dents, paint flaws or rusts. Also, windshield glass, lights, lenses, and wheels.
    2. Interior: Upholstery and carpet, electronics (windows, radio, NAV, etc.)
    3. Mechanical: Engine, transmission, steering, brakes, tires, suspension.
  • Make as well as Model of the car - There are more interest and demand for specific models and makes over others.Chevrolet tops the list of most-available brands in the U.S. (with about 450,000 available), followed by Ford (425,000). There are "only" about 280,000 Toyotas on the market at any given time.
  • Mileage - Another thing to check out is how much mileage has been driven on the car. Certainly, cars with lower mileage will surely bring a greater selling price compared to if the car has been driven a lot and already has high mileage.Consumers lose as much as $4 billion a year due to odometer fraud, with the average rollback being over 15,000 miles.
  • Season - Based on which type of the vehicle, is possible to get more money depending on the season.For example between July and October larger dealers typically lower vehicle prices to attract off-season buyers.
  • Vehicle History - In the event that the car has had previous damage from a major accident or weather related mishap such as hail, it will definitely decrease how much the car is worth.For example, let's say you found two cars of the same year, make, model, equipment and have similar miles, but one has damage reported on the Vehicle History Reports while the other does not. You would expect to pay less for the one with the damage and because buyers expect to pay less for that car. Also if you are going to trade in your vehicle towards the purchase of a newer car the Dealer typically will offer anywhere from 10-30 percent less for your trade.

How to find out the market value or Present Worth of a Used Car

When negotiating, most car dealers do make use of Kelly Blue Book values. You can also check out the Kelly Blue Book website and check the worth of the car you intend to purchase. Also confirm the value of the same car model produced two years back. For example if you are buying a specific car make and model then check out the value for the exact same model and make for both the 2010 and 2008 models. The difference between the 2008 and 2010 cost is the depreciation. This gives you a great idea on how much the car depreciates on average. Now if the recent model year is 2012, then you can certainly use your rough depreciation estimate to figure out the reasonable worth of the 2010 model. For instance, if the Kelly Blue Book listed prices for 2010 and 2008 models are: $30,000 and $25,000 respectively, then the depreciation is $2,500 yearly. So if you go to the dealer and the 2010 model is priced at $31,000 then you can definitely argue that as a result of depreciation the 2011 model should sell for $31,000-$2,500=$28,500

Negotiating Power when Buying a Used Car

  • Do your own research on the car you wish to buy.
  • Set your price - Decide on the amount you want to purchase the car.
  • Talk to several car dealers.
  • Don't reveal your eagerness to purchase the car.
  • Have it checked out by a private mechanic.
  • Give an Ultimatum - Request for some time to consider purchasing the car.
  • Be willing to walk away.

In determining the worth of a car or when thinking of buying a used car, it is very essential to carry out this process and do research on the worth and value of the car. If these research is not carried out, is either you are over charged as a buyer or under charge as a seller.

Post Your Comment