Are you looking for a vehicle and concerned about the value of used cars? Do you feel as if the seller is quoting an excessively high price? You think the used car offered at the dealership is worth a lot less than what the dealers claim? Or is it your own used car you want to sell?
Let Auction Direct USA help you out!
We offer a complete guide towards calculated the true value of used cars. Whether you’re a first-time or an experienced buyer, our team helps you determine the best price for your car. Here’s what you need to know:
Basic Approach to the Value of Used Cars
There’s no rocket science involved in car valuation for appraisal or selling purposes. The value of a used car depends upon its mileage, condition, the amount of damage sustained, any repair works carried out, the market rate for similar vehicles and any modifications made by the original owner or dealership.
Used cars have less depreciation compared to new cars
New cars lose an average of 30% – 60% of their value in the first 5 years. According to the National Automobile Dealers Association, the average price of a new car sold in the United States is about $30,000. This means that a new car will depreciate anywhere from $9,000 to $18,000 in just 5 years.
At Auction Direct USA, the first step begins with determining the current retail and trade-in values for the used car, based on its year of manufacture, make and model. This helps us determine the market value for your vehicle. The next step involves any of the following three methods for computing the true value of your car:
The Retail/Trade-in Approach
Retail value (or retail price) represents the price charged by a dealership in respect of the vehicle. Since the dealership incurs significant repair and maintenance charges to bring the used car to (almost) mint condition, it is generally higher than the prevailing price.
Wholesale value (or trade-in price) is the selling price quoted by a private seller. This occurs when the seller wants to sell his/her vehicle directly, without involving any intermediary. This price should be significantly lower than the retail value.
At Auction Direct USA our experts calculate trade-in value for a used car based on our extensive market research. This prevents you from being ripped off by the seller by providing you with a more reliable selling price estimate.
The Market Value Approach
The true value of used cars is actually their market value. This figure is nothing more than the average or retail value and trade-in value. For instance, if the retail value of a car is $7000 and the trade-in value is $5000, then the market value-based approach places the value of the used car at $6000 (7000+5000/2). If you’re unsure of how this formula is derived or need an expert opinion on car valuation, call us today!
If the first two methods sound tricky, don’t worry. We offer a simple and efficient tool to calculate the value of used cars: our patent car value calculator. On our blackbook page, just enter your car brand, model, year of purchase and existing mileage and let us do the math! The final result accurately reflects your car value and what it can bring in the open market.