How to Value a Pre-Owned Car

 
Cracking the Code - How to Value a Pre-owned Car.

So, you're in the market for a used car, and the million-dollar question is, "How do you figure out what's a good price?" Fear not, valuing a used car, used truck, or used SUV isn't as mysterious as it seems. Let's breakdown the factors used to establish a fair price for a used vehicle, helping you to find a great used car deal.  Research, it starts with getting a baseline value.  Arm yourself with knowledge.   Websites like Kelley Blue Book (KBB), Edmonds, and J.D. Powers used car values, the industry standard used by most banks and credit unions in the country have for a retail value.  It is important that you not only have to correct year, make, model and mileage of the used vehicle you're eyeing, but the correct trim levels and equipment.  This can be critical.  Having the wrong trim level or equipment can potentially change the value you are looking for by hundreds if not thousands of dollars in some cases.  Without the proper "book out" information, you may have found your dream car, but felt it was overpriced because you didn't have the correct trim level and options picked, or the opposite and think you are getting a bargain, only to overpay for a vehicle that didn't have the trim level or options you thought it had when coming up with a retail value.

Check the Vehicle History Report:

Think of this report as the car's biography. Websites like Carfax or AutoCheck provide valuable insights into a vehicle's past, including accidents, title issues, and odometer readings. A clean history typically means a higher value, while a major accident usually means a lower value for the vehicle.   Remember the average used car value is just that an "average", it includes vehicles with and without accidents, and in various maintenance histories.  Forbes recently reported that 16% of all vehicles on the road have had an accident.  Also consider the type of accident, a vehicle that might have had a windshield replaced from a stone hitting it or a bumper when the owner backed into a light post at a ballgame normally wouldn't necessitate any downward adjustment, while a vehicle that suffer major damages would equate to a lower value.

Consider the Condition:

The wear and tear on a car can significantly impact its value. Take a close look at the exterior, interior, and under the hood. Scratches, dents, or mechanical issues should be factored into your valuation. A well-maintained vehicle with service records tends to hold more value.

Mileage Matters:

Mileage is like the car's life story. Lower mileage often means less wear on critical components, and therefore, a higher value. However, don't be too quick to dismiss a car with higher mileage if it has been well-maintained. Modern cars can still have plenty of life left after reaching six-digit odometer readings.  The other factor to consider is time and miles.  Many times, a very low mileage vehicle with several years of age might not be worth the premium some customers will place on it, keep in mind that belts, tires and other components can suffer degradation, especially if they are stored outside exposed to the elements.  The same holds true for a well-maintained fleet vehicle that may be driven 70,000 miles in as little as a year.  Many of these vehicles have a lot of life left.

Test Drive and Inspection:

Before sealing the deal, take the car for a spin.   Our appraisers usually won't place a final value on a vehicle without driving it.  They ae looking to see how it drives, does it feel solid, or does it wander and exhibit strange noises?

Keep in mind that there are factors we haven't touched on in this article.  Rare vehicles, the color of the vehicle, affordability are just a few items that will require an adjustment to base values.  Here are some examples to illustrate the point:  A car with very limited supplies will command a premium over vehicles that are abundant and easy to find, much like certain new vehicles will sell for no discount from MSRP or even a premium over the MSRP.  The same holds true for a used vehicle that is very limited in supply.

Color matters, sports cars in bright red, yellow or black will usually fetch more than a gray or white vehicle of the same model, just like a pink fleet car for Mary Kay Cosmetics will sell for a discount because of the color.   Affordability, it is difficult to find cars priced under $10,000 and as a result, vehicles that can be financed will command a premium.  This is especially true here in Vermont where rust severely lowers the supply of older used cars and used trucks.

Conclusion:

Valuing a used car may seem like decoding a secret language, but armed with research and a test drive you can confidently determine a fair price. Remember, buying a used car is a thrilling journey - make sure the path you choose leads to a reliable, affordable, and enjoyable ride!
If you feel the vehicle is overpriced, don't be afraid to ask the seller, how they arrived at their price?  This conversation many times will allow both parties to ensure the vehicle has been "booked out" properly, adjustments have been made for condition and any other market factors.

If you feel the vehicle is not priced correctly, don't be afraid to ask the seller, how they arrived at their price?  This conversation many times will allow both parties to ensure the vehicle has been "booked out" properly, adjustments have been made for condition and any other market factors.  Our team at Central Vermont Auto Mart saves you money and we are happy to discuss and share with you how we arrived at the price of any of the great used cars and used trucks for sale in Montpelier Vermont.