When you’re in the market to sell your car, you may find that putting a price tag on your precious car can be challenging. It can put you at a loss or hurt your chances of landing a sale if you set your vehicle at a random price and overestimate or underestimate its worth.
When it’s time to sell your car, finding an accurate car resale value is the best way to ensure that you sell it for what it’s actually worth. It can be an intimidating process and may require considerable time and effort to arrive at an accurate price.
This blog delves into how a car’s resale value is determined by looking at how different buyers appraise your vehicle and the factors that influence the price you can expect.
How Much Can I Sell My Car For?
There are many ways to sell your car. The car resale value will differ in each transaction, depending on who’s buying and paying for your vehicle. Here’s a quick run-through of the different ways to sell your car:
- Trade-In: Trading in your car at a dealership for extra credit on your next car purchase is often one of the fastest ways to sell your vehicle. However, it also offers the lowest value for your vehicle as they typically offer prices around its wholesale value.
- Private Party Sale: If you find the right buyer, then selling your car to a private buyer has the potential to secure a high resale value for your vehicle. The price you can get is typically higher than when you trade in your car but requires more effort in marketing and negotiating with potential buyers.
- Instant Cash Offer: Platforms like GivemetheVIN provide a hassle-free way to sell your car while maximizing its value. When selling your car online, provide accurate information about your vehicle to get the best estimate for your car. You can also input your car’s VIN for a faster transaction. When GivemetheVIN makes an offer, you can negotiate for a better price, depending on the information you provide.
How Car Resale Value is Determined
The question of “how much can I sell my car for?” can be answered by online value estimators, like the National Automobile Dealer’s Association (NADA, now part of J.D. Power). This, among numerous other online calculators, allows you to find your vehicle’s estimated resale value using several pieces of information, including:
- Make, Model, and Year: Valuation tools typically ask for the car’s make, year of manufacture, model, and body style. This information is readily available in the owner’s manual or by looking it up online using the car’s Vehicle Identification Number (VIN).
- Features: Certain car features can affect your car’s resale value. In some cases, upgrades like custom spoilers and rims can add value to the vehicle or hurt its value, depending on the buyer’s preferences. Taking note of these features can help you get a more accurate estimate of its resale value.
- Vehicle Condition: Perhaps the most important determinant of car resale value is its condition. Be as accurate as possible when asked about your car’s current condition and avoid overestimating its value. Read the description written on each category before responding to the question.
- Mileage: This significantly impacts a car’s resale value, as the value of the car typically goes down the higher the distance it’s covered. It can be found on the odometer on your dashboard.
The estimated values provided by NADA are typically higher than other online valuation sites. This is because NADA tends to focus on the car’s wholesale price, current market prices, and demand in your area.
Factors That Influence Car Resale Value
Now that you’ve secured an appraisal for your vehicle, what’s next? Well, your next step should be finally going on the market and selling your vehicle. But again, you may be wondering, “how much can I sell my car for?” The value that pops into your mind is the appraisal value. However, you may be disappointed to find that the offers you receive are far less than what you expected.
When reselling your car, there are other factors that can influence its resale value. So, if that’s the case, is securing an appraisal useless? No, it isn’t. In fact, having your car appraised early on puts you in the best position to secure the best price for your vehicle.
That said, here are other factors that impact how car resale value is determined:
Cost of Depreciation
According to experts, the average new vehicle will lose between 9-11% of its original value the moment it is driven off the lot and as much as 65% after five years. But in some cases, different vehicles can fare better than others, especially when they undergo regular maintenance.
Prevailing Market Conditions
The overall state of the market can also dictate the price you can secure for your vehicle. For instance, if there are numerous cars similar to yours that are on sale on the dealer’s lots or from other sellers, then it may be more challenging to secure a higher price with so many different options available. Similarly, it may also impact the price you get at a trade-in when countless other vehicles like yours are available in their lot.
Brand Perception
Aside from the vehicle’s overall condition, buyers can offer a higher price for a used car depending on its brand’s level of prestige and reputation for quality and reliability. Essentially, a more prestigious brand will almost always go for a higher price than a less-known brand or one with a negative reputation.
Economic Outlook
The prevailing economic conditions can impact a buyer’s ability to pay, thus affecting the overall price you can secure for your used car. For example, buyers will have less buying power in an ongoing recession than when the economic outlook is positive. Although potential buyers may be more interested in buying used cars instead of new ones, they will most likely offer a lower price than expected.
Vehicle Popularity
Needless to say, a more popular model will attract more buyers and fetch a higher resale value than other car models. When the supply of this particular model is low among used car dealers, you are more than likely to secure a better price from any potential buyer. The contrary is true, as the least popular models may also fetch a lower price than you would like.
Buyer Preference
In some cases, buyers will prefer cars with features they already like, which increases the potential resale value of your vehicle. For instance, if the car is available in a trendy color, buyers will become more interested and willing to offer a higher price. And again, the contrary is also true as a car with a less appealing color will attract lower interest and lower prices than desired.
Level of Personalization
Generally speaking, most car owners prefer cars with all their original parts intact. But again, this all boils down to user preference, as some potential buyers can offer higher prices for cars that possess features they like, such as alloy wheels, antilock brakes, navigation systems, leather seats, backup cameras, and parking sensors.
Supply and Demand
The Law of Supply and Demand is a fundamental economic concept that describes the impact of a commodity’s supply in the market and the demand for such items on their perceived value. Based on this concept, regardless of how well your car is maintained, you will never get a reasonable price for your vehicle if there is an oversupply of the same car on the market at the time of selling.
Timing
Timing is everything, as evidenced by most of the factors mentioned above. With all of the above factors considered, fetching a lower price now could be a matter of not being the right time, and you would be better off waiting for a better time to secure a better price for your vehicle.
A Hassle-Free Selling Experience
When selling your car, it’s natural to want to know how much it’s worth on the market so you can get the best prices. The best way to accomplish this is to take the time to do your research and find platforms that offer the information you need. This puts you in the best position to secure the best price for your vehicle.
Finding the best prices for your car can take considerable time and effort, but GivemetheVIN offers a seamless selling experience that helps you get the most value out of your used car. Just supply your car’s information, and you will get an instant offer for your vehicle – the more accurate the information you provide, the more precise the appraisal will be. Get the best offer for your car today!
