One of the most important factors when thinking of buying a used car is knowing how to find the true value
. No one wants to spend more than they have to. Not everyone knows how to find the value of a used car and some end up paying more than they should.
Thankfully, there are many ways to find the value of a used car. One bit of information to bear in mind when looking for the value is that there are different benchmarks. The three most used are:
Suggested retail value: this is the price that someone looking for a used car will be offered by a dealer.
Trade-in value: this is how much a car dealer offers for a car you are trading in.
Private party value: this refers to a sale between two private individuals. There is no business entity involved in this transaction
One good way to determine the value of a used car is to use established standards such as the Kelley Blue Book. This company is the most respected and well-known car valuation company in the USA. The blue book is the source most people turn to when they want to know the market value of used or new cars.
Another way to get the value of a used car is to get it checked by a reputable vehicle valuation company like Carfax. The staff is usually well trained in vehicle appraisal. To make a determination as to the best price for a vehicle, it is recommended that the average value of at least three appraisals be used.
There are also websites that can help you find the value of a used car; the DMV website for instance. These sites generally require that you provide the make and year of the vehicle you are interested in. Once this information is entered into the appropriate fields, clicking search should provide a range of prices for that car.
Some used car companies also provide the value of cars they sell. They generally get valuations on the cars they have in stock. This is normally provided by professional valuators. Many of the car dealers provide the information on their websites free of cost.
While the prices obtained by these and other means is close to the actual market rate, it is no guarantee that the seller will offer it at that price. However, by researching the value of a used car that you are interested in, you can better plan for your purchase. Having some idea of going rates for used cars helps prospective buyers to budget. It also provides information that allows you to realistically determine what type of car you will be able to afford.
Finding the value of a used car serves other purposes as well. It enables anyone interested in these cars to make price comparisons. These comparisons help car buyers make a more informed buying decision. While knowing the value of your preferred car is important in making a choice, the final decision shouldn't be based on the cheapest car.