Using a Car Price Guide
One of the first steps when deciding whether it will be worthwhile to sell on an old car is working out what it is worth. Without knowing the value of a vehicle it is impossible to determine whether there is any point in trying to find a buyer, and it will also be impossible to beginning searching for interested buyers without knowing what price to ask.
Many different factors must be taken into account when choosing an asking price for a used car. The make and model or car, its age and its condition will all have a significant impact on its value. Car values can also fluctuate for other reasons. Certain times of the year can be better for getting a good price than others, for example, and other features of the car can also be important, such as its color and any optional extras that have been installed in it. The history of a car, including its service history, can also affect prices.
An online car price guide lists the basic values of different types of car. This is the best starting point when estimating the value of a particular vehicle. The Kelley Blue Book is used by many car value guide websites to calculate the expected prices of vehicles.
The Kelley Blue Book originated as a list of prices distributed by a car dealer, Les Kelley, to other dealers from whom he was hoping to buy. When Kelley realized that his list was being used by other dealers to help them to determine the values of different types of car, he saw an opportunity to expand his business in a new direction. In 1926, Kelley published his first Blue Book, listing both factory prices and cash values of thousands of different vehicles. It quickly became the standard price guide for used cars.
Estimates can be obtained directly from the Kelley Blue Book website, or from a number of other car price guide sites such as Edmunds.com and NADA guides.
Retention of Value
Certain cars are more likely to retain more of their value over time and are, therefore, likely to fetch higher prices when they are sold as used. A car that is bought new will steadily decline is value over time, due to the effects of wear and tear, but some cars can be expected to have higher residual values. Owners can therefore recoup a larger proportion of their initial expenditure on the vehicle if they later choose to sell it as a used car.
The Automotive Lease Guide Residual Value Awards are given annually to the car manufacturing brands that produced vehicles with the highest residual values, calculated as the percentage of the original price that is expected to be retained after three years. The 2010 awards were given to:
Subaru (best mainstream brand) and Subaru Forester (best compact utility vehicle) and Subaru Outback (best midsize utility vehicle)
- Acura/Honda (best luxury brand)
- BMW 1 series (best near luxury car)
- Ford F-150 (best full size pickup)
- Land Rover Range Rover Sport (best luxury utility vehicle)
- Lexus/Toyota Lexus LS (best near luxury utility vehicle) and Lexus RX (best luxury car)
- Mazda Mazda 3(best mid compact car)
- Mini Mini Cooper (best sporty car)
- Nissan Nissan Maxima (best full size car)
When to Sell Your Car
The demand for used cars fluctuates over time, and therefore the price that a particular car can be sold for at one time can be very different from that which it could fetch at another. In order to get the full value of a car it is advisable to choose the best time at which to sell it. The factors that should be considered when deciding whether the time has come to sell a car relate to two main considerations: the position of the seller and the situation in the local used car market.
Sellers should consider the age and condition of their car when determining whether it is worthwhile trying to sell it. There is an optimum point at which to sell a car before its condition begins to deteriorate rapidly and brings its price down too. It is also important to take into account any money that is owed on a car. If the current value of the car on the market is less than the amount still owed on the loan, then it may be a sensible idea to wait until prices rise, if there is a reasonable expectation that they will do so.
The local market should also be taken into consideration. Demand for certain types of cars will be higher in particular areas. Smaller, compact cars may fetch higher prices in a city, for example. Demand can also vary even within the same area, however, so it can pay to keep an eye on sales of similar models in the area in order to choose the best time to sell.
Other factors that can influence the number of buyers who are looking for a used car, and so affect the price that can be gotten, are the weather and the price of gas. People are more likely to go out looking for a car in good weather, although SUVs can sell better in winter as people feel the need for a tougher vehicle. People are also more likely to decide to buy a car when gas is cheaper, although hybrid vehicles and fuel-efficient cars may experience a spike in demand when gas is expensive.
The used car-pricing tool on the AutoTrader website can be used to estimate a price for a car based on the sales of similar vehicles on the local market.
Condition of the Car
The value of a car will decrease with age and with any deterioration in the vehicle's condition. It will also decrease as the mileage rises. A car that is fairly new, which is in excellent condition and which has a low mileage, will be able to at the higher end of the price range for its particular model. Online used car price guides take all of this information into account when giving an estimate of a specific vehicle's value.
Fixing any damage to the car in order to increase its value before selling may be worthwhile. The cost of the repairs should be taken into account, however, as it would not be sensible to spend more than the work would add to the car's selling price. Ensuring that the tires are in good condition is one easy way in which its value can be maximized. Dents and scratches can also have a dramatic impact on value, therefore it may be worthwhile to have them professionally mended.
History of the Car
Sellers should provide all of the necessary documentation to buyers when they are selling a vehicle, but they can also add some additional evidence about the car's history that may add to the value of the car.
A car that has been well looked after can be more valuable than one which has no proven record of care. Providing documentary evidence that a car has been regularly serviced can reassure potential buyers and encourage them to pay more for the vehicle.
Classic Cars
The values of some types of car behave differently than most. In the same way that there are antiques in other forms, there are antique and collector cars. These cars are prized for their uniqueness, style or historical value, and therefore do not deteriorate in value as they age in the same way as less special cars. Classic cars can increase in value over time as they become rarer, although as with less valuable cars, their condition will affect their price.
Listing A Car For Sale
The way in which a car is presented and advertised can influence the chances of getting its full value in a sale. It is best to clean a car thoroughly and perform any small repair jobs that need to be done before listing it for sale. This will ensure that it can be advertised in the best possible condition, and will be ready to be viewed when someone shows some interest. It will also mean that the car looks good in any photos that will be used to advertise it.
Used cars can be sold privately by listing in local newspapers or online, or they can be sold to a car dealer. When selling to a dealership it is possible to hire a car broker to negotiate a price for the vehicle, but this may not be worthwhile unless it is particularly valuable.
Trading In
Rather than selling a car, it may be possible to trade it in as part payment for a new car from a dealership. It may not be possible to get as much for a particular vehicle when trading in as it could be sold for privately, but it can be easier than finding a buyer.
Alternative Options
If a car is not valuable enough to merit selling it, then it can be sent to a salvage company instead. The company should tow away the vehicle for free, and they may even offer a small token fee as payment.
Another alternative to selling a car is donating it to charity. Some charities can use donated vehicle themselves, while others will auction them off to generate some funds. Many charities will accept cars in even if they are in poor condition. The value of a donated car is usually tax-deductible.