How To Value My Car – How much is my car worth? Find out how to determine the value of your car before you go to the dealership.
When it’s time to upgrade your car, the first step is to unload your current car. You have two options: sell it or sell it. Both options have their pros and cons, but first you need to know how much your car is worth to accurately estimate your new car budget.
How To Value My Car
Fortunately, there are valuation tools to answer the question “how much is my car worth?” We will take a look at these tools and offer an easier alternative to them below.
Increasing Your Cars Value
To get an accurate market value for your car, you can search the internet for countless hours to find similar cars for sale and their prices. Year, make, and mileage aren’t the only factors to consider in determining price, however. You must consider condition, Carfax history, color, location, financing rates and more! Or you can go to a car viewing service that has already done the work for you.
Sites like Kelley Blue Book and Canadian Black Book compile data on new and used cars to determine their base value, value of additional options, and more. They then measure the resale value based on the condition and mileage of your vehicle, and whether you plan to trade-in or do a private sale.
There can be a significant difference in the value of your car depending on whether you sell it or sell it privately due to tax incentives. For example, if you have a Honda Civic that can be sold privately for $10,000 in Ontario. It would cost $11,300 if it were valued at $10,000 as a trade-in. When you sell your car to a dealer, you don’t pay tax on the difference between the value of your car and the new car you bought. So your total savings when trading in the example above is $10,000 + $1,300 = $11,300.
These appraisal sites are free, but there is no guarantee that you will get an accurate appraisal for your vehicle. These services give you an approximate price range, but the final selling price depends on the demand for your car in your area and the ever-changing market conditions.
Out The Door Price: Everything You Need To Know
When you decide to sell your car on the open market, you need to set an initial price. Canadian Black Book and Kelley Blue Book can give you a good range of value for your car.
If you are using the Canadian Black Book (CBB), start by selecting a make and model from the drop-down boxes at the top of the screen and click Search. Let’s use the Ford Focus as an example. On the next page, click “Get Average Asking Price”.
As prompted, enter the information specific to your vehicle. For our example, we’ll use K2H1A1 for our zip code, 2018 for the model year, and 50,000 for our mileage. Click “Next”.
Now select the trim. For our example, we’ll choose the Titanium trim. If there are optional body types, you’ll select those next. For our example, we will choose “4D Sedan”.
What’s My Car Worth?
Then select the options of your car and its color. For our example, we will select “No option available” and “white”.
On the next page, CBB asks for the car you plan to buy if you sell your car now. For our example, we’ve chosen a 2021 Ford Mustang and said we plan to make that purchase in six months or so.
On the next page, you can enter your personal details if you want, or you can skip it by pressing the “Skip” button.
On the last page you will get the average asking price for your car. For our example car, it costs $18,675.
Should I Sell My Car Privately Or Trade To A Dealer?
In Kelley Blue Book (KBB), click the “Select Make” drop-down box and select the make of your vehicle, then match the model and click “Search.” We use the same 2018 Ford Focus Titanium 4D Sedan for this example.
Scroll down to find the year, fuel type and transmission type that fits your vehicle on the next page. Then click on the trim level that fits your vehicle.
On the next screen, click on ‘Private Party Value’, then enter the mileage and condition of your vehicle. For our example, we chose 50,000 km and “Very Good” condition. If you want to add additional equipment, click the “Edit Additional Equipment” button.
For our Ford Focus example, KBB estimates a private party value of $18,005 and a fair price range of $17,198 to $18,813.
When To Sell Your Car
When trading in your car, CBB and KBB are good resources, but expect the values to be lower than private party values. This is because sellers must factor in their selling price and any repairs the car needs.
If you are using CBB, select a build model from the drop-down boxes at the top of the screen and click Search. We will continue to use the same Ford Focus as our example. On the next page, click “Get Exchange Value”.
Enter the information specific to your vehicle as prompted and click Next. We’ll use all the same data as before: K2H1A1 for our zip code, 2018 for the model year, and 50,000 for our kilometers.
Now select the trim. If there are optional body types, you’ll select those next. Click “Next”. We will continue with our previous example which is a 4D sedan with Titanium trim.
Tips For Increasing The Value Of Your Car Before Selling
Next, select the options of your car and its color, then click Next. For our example, we will select “No option available” and “white”.
On the next page, CBB asks you to specify the next car you plan to buy if you sell your current car. We’ll use the same car as our previous example: a 2021 Ford Mustang that I plan to buy in six months or so.
On the last page, you will get a low and high trade-in value for your car. For our example car, it costs between $14,360 and $15,640.
At KBB, the process is almost the same as finding the value of used cars from private individuals. Click on the “Select Make” drop-down box and select the make of your vehicle. Click the “Select Model” drop-down menu and select your vehicle model. Click Search. We use the same 2018 Ford Focus Titanium 4D Sedan for this example.
Be Car Smart
Then scroll down and click on the year, fuel type, and transmission type that matches your vehicle. Then click on the equipment level of your vehicle.
On the next screen, click Trade-in Value, then enter the vehicle’s mileage and expected condition. For our Ford Focus example, we chose 50,000 km and “Very Good” condition.
If your vehicle has optional equipment, click the “Edit Optional Equipment” button and select the available options. KBB will now list the value of your car as a trade-in.
For our Ford Focus example, KBB estimates a trade-in value of $12,758 and an estimated trade-in range of $11,931 to $13,586.
Things That Could Be Destroying Your Car’s Resale Value
While these valuation tools provide great insight into your vehicle’s value, they are not omniscient. Other variables can still affect the value of your car that are not taken into account by KBB and CBB. Here are some variables to consider:
Car buyers want a vehicle that is sure to last, and a complete vehicle service history record is a great way to show that your car has been well maintained. With these records, you can expect a buyer to pay at the high end of the price range for your car.
If a buyer tries to bargain with you, use this impeccable service history as a selling point for your car. The best way to show this is to keep all your service receipts or take your car to a dealership that records your service history on their Carfax report.
The history of the car is another concern in the car buying process. If a car has been in an accident, flooded, or has other damage, it can reduce its value. If your cars have never experienced these problems and you want to prove it, just download the Carfax report to show the future buyer.
Buying A New Car Vs Used Car: Which Option Is More Worth It?
Many people who try to sell their cars privately compare the price of their car to similar cars that are sold at dealerships. After several weeks of no sales, they eventually lowered the price but wondered why the dealerships could sell the same car for more.
If you were to buy a Toyota Corolla, would you pay $15,000 to Joe from Mississauga? Or buy this Corolla from a big, reputable, established business that has sold hundreds of similar cars this month for the same price. Most people choose the latter.
Getting an appraisal from KBB or CBB in no way guarantees that you will get the private party or trade-in amount they give you. They are only estimates based on data. Then there’s the hassle of going to traditional dealerships to get an estimate while they try to sell you another car or listing the car for sale privately and spending time emailing, texting, calling, lowballing, hitting tires and failing to show up.
You can skip all the headaches with Clutch, Canada’s first 100% online car dealership. We have an online car valuation tool
Can I Keep A Car Deemed A Total Loss?
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