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Where can I find the trade in value of used cars?

One of the key benefits associated with buying a used car is the opportunity to get a great vehicle at an affordable price. Used cars are perceived to be a better value than new cars, and this perception often holds truth. However, it is possible to get a bad deal on a used car too. One of the best ways to ensure you get a great deal on your upcoming purchase is to research the value of the vehicle you are considering purchasing.

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Why Used Cars Can Be Such a Great Deal

New vehicles inherently lose value as soon as they are purchased. The mere act of driving a vehicle off a lot can create a loss in value of about ten percent, depending on the make and model. Over the next year, another ten percent in the car’s value may be lost. Most cars depreciate in value regularly with time. In addition to the element of time, vehicles also lose additional value as miles are driven. Many lightly driven vehicles are in “like new” condition, but they may have a sales priced that is reduced by ten to 30 percent, if not more. Some of these vehicles are still under a manufacturer’s warranty.

Factors Affecting a Used Car’s Price

When a seller lists a used car for sale, he or she can list that vehicle for any value desired. It does make sense for the seller to research the car’s value online before selecting a list price. However, other factors may influence a seller’s desire to mark up or mark down the price from the value. Consider such influential factors as:

• How much money a car seller owes on the vehicle
• How quickly a seller wants to sell the vehicle
• How much profit a seller wants to make from selling the vehicle

Consider, for example, a vehicle that is valued at $10,000. The seller may owe $11,500 on the vehicle, and he or she may not be in a hurry to sell the vehicle. So the selected list price may be $11,500. On the other hand, a similar seller may need to sell that same $10,000 valued vehicle quickly. He or she may price it at $9,500 to sell it quickly.

How to Find a Car’s Value

So how can you find a car’s value? The Internet is a great resource that puts a car’s value right at your fingertips. You can use several different sites to research the car’s value, including popular websites like kbb.com and edmunds.com. These sites allow you to compare the trade-in value against the suggested retail price of the used car. Further, these values are specified by zip code, as the value for certain vehicles is affected by the location you are buying your car in.

Valuation Factors

These and other similar valuation websites create a value of a specific vehicle based on certain criteria. The criteria includes:

• The vehicles make and model
• Features in the vehicle
• The vehicle’s engine
• The vehicle’s condition
• The vehicle’s mileage
• The zip code where the vehicle is being sold

How Financing Affects the Price You Pay

There may be some instances when you find the perfect car and are willing to pay higher than the value in order to own it. This may be true when you are buying a vintage car, a car with special features that are difficult to find, a limited edition car or some other type of vehicle that is unique in some way. Car lenders typically lend up to the car’s listed value. Some lenders will offer you a loan amount up to 100 percent of the car’s value. Other lenders may only offer a loan amount equivalent to a portion of the car’s value. By paying more than the value is worth, you may be increasing the amount of money you have to pay for out-of-pocket.

How to Use a Car’s Value

While there may be instances when a buyer is willing to pay more for a vehicle that its actual value, most buyers are looking for a deal. They would prefer to pay a price equivalent to or below the listed value. However, this doesn’t mean that you should only consider buying vehicles that are listed at or below the suggested value. The fact is that you can use the car’s value in your favor to negotiate a reduced sales price.

If you find a vehicle that you like, you can certainly place an offer for the vehicle at the car’s suggested value even if the asking price is higher. One key negotiation tactic is to negotiate the car’s sales price based on a vehicle in lower quality condition. For example, the seller may be using an “excellent” condition valuation, but you can make an offer for a “good” condition vehicle.

Researching a used car’s value is a critical step for buyers to take who are interested in trying to get the best deal possible. In addition to using the car’s value to find a great deal, the car’s value can also be used to negotiate a reduction in the sales price. Before you make an offer on a vehicle, always consult these or other similar websites for their value. After making your purchase, hop back online to enter your ZIP code into a car insurance rate comparison site to find the lowest rate on car insurance.