How much is your car worth?

Posted on Thursday, November 8, 2018 - 11:39

Trading in your vehicle can be the easiest option when it comes to selling your car. But how do you avoid selling your car to a dealer who wants to pay you less for your pre-owned vehicle? Knowing how to estimate the true value of your car can help you get the best deal for your car and here are five ways in which you can do this.

What is a good asking price?

This is probably the most important question when trading in your car since you want to get the best value for it. At this stage, researching similar car models of the same year on other used car websites and dealerships will let you gauge how much your vehicle will typically sell for. It is vital that you compare apples with apples when doing research for car sales in your local area. You can use websites such as Redbook or Carsales to get a more accurate valuation, specification, and pricing for your car.

The age of the car

Car depreciation is one of the major factors that can impact the resale of most cars, unless if you are the proud owner of a vintage beauty that appreciates as it ages. Depending on the type of car that you have, its size, and colour you could lose up to 50% of the car's value in the first 3 years. Having a car that has a high resale value in terms of the used market can help you get most of what you paid on the car. Neutral coloured cars that have an automatic transmission tend to attract a higher price compared to their counterparts.

Know other facts that can impact the value of your car

There are many factors that impact the resale of your car and knowing such factors can help you get the most out of it. Some of the things that can affect your car’s value is:

  • The condition of the vehicle
  • Mileage
  • If it is in demand in the used market
  • Fitted extras that could increase or decrease the value

The time in which you choose to sell your vehicle also impacts whether you will get the most return or not. Car sales also work in cycles where Aussies will prefer to purchase a car or refrain from getting one.

Why you need to know the trade in value before hitting up your dealer

Doing your research before you take your car to a dealer has obvious benefits. Not only will it give you better leverage in knowing what your wheels are worth and better negotiating power, but can also help you swerve dealers that would likely take you for a ride and offer a value that is way less than your car deserves.

It can also help people who are looking to upgrade their vehicles by knowing how much leeway they may have on their budget without straining it or you could alternatively take out a car loan to supplement your budget.

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Filed Under: Car Buying