Most people will trade in or sell their cars to a dealership or to a private party. The reasons differ on why people do this. Some are just ready to move up to the next level in features and comfort, while others are tired of constantly paying for repairs on their cars.
But the cars that get the best money are cars that are in popular demand; in good to excellent shape; are well-maintained, and are priced reasonably. But just how do you find out what your car is worth?
.Two Prices: Retail and WholesaleBefore you can determine how much your car is worth it must be understood that there are two price structures when it comes to determining the value of a used car.
Retail pricing is what you can expect to receive or what the going rate of the car is to a private party. You can get guides on how to price your car by referring to places such as Kelley Blue Book or Edmunds.com.
It is here, and other places on the internet, where you can get a ball park figure on what your car is worth. These prices take into account a car’s condition, mileage, and other factors that can affect pricing.
Wholesale pricing is what you can expect to get through a car dealership or in other words, a price they can buy your car for so they can resell it and make a profit. The wholesale price is considerably less than retail pricing, which explains why dealers cannot give you a trade in based on Kelley Blue Book.
What’s the Market?Car pricing websites and magazines are only references for what used cars can bring in a
perfect world. A very small percentage of cars can demand top dollar, as set forth, in these guides.
One way to determine what your car is really worth is to do some virtual shopping online, in newspapers, or trade magazines. See what the going price sellers are asking for and price your car accordingly.
Make Them An OfferMost smart sellers know that the majority of car shoppers are looking for a reasonable deal, and not a full retail priced car.
Everyone loves a bargain and pricing your car below the going rate will attract more interest than a car that is at or above the average price.
But be prepared to be talked down in your price from potential sellers. Because this possibility you may need to “pad” your asking price by $50-$100 dollars so you can make up for the discount to the customer.
Get a Good DealIf you are trading in to a car dealer, it may be more of a situation of convenience for you than the price you get for your car. If you are haggling for a good price on a new car, trading in your old one may help sweeten the deal.
But be aware that if you get a good trade in value, be certain that the dealer isn’t adjusting your APR, lengthening your loan payment time, or adding extras to your contract to make up for the loss in giving you a good price for your car.
The dealership has to make money on your trade-in so be reasonable for a fair, but lower price than retail.
Another option is to offer your car to a car remarketer such as carbidnow.com. They can provide top dollar prices that can be very competitive when compared to the prices you get for trade ins at the car dealer.
Source:
Consumer Reports