Setting a price for a car takes a lot of research and intuitiveness. You have options on how you want to sell your car: wholesale versus private sale. Whichever you decide, you still want to make sure you are getting a good value for your vehicle. So, here we are going to give you a guide to help you find the right price to sell your car.
Wholesale versus Private Sale
Selling your car privately, you will be able to get close to the retail price, but selling it to a dealer will only get you the wholesale value. This is normally about a 10 to 20 percent difference. If your car is an older model, then most likely you will have no choice but to sell privately, because most dealers won’t take it. Keep in mind that when selling privately, you’re investing a lot more time and energy into the process, but it may be better than selling to a dealer.
Look into the Market Value
Consider market conditions that could impact when you are trying to sell. What cars are in demand at the moment? When is the right time to sell my car? You should research your car’s current market value before you put it up for sale. Additionally, if your car has been in an accident, that will likely affect its market value; you will have to do some extra research about its “LKQ,” or “like kind and quality.”
Check Pricing Guides
There are tools that are here to help you determine the value of your car. These pricing tools are adjusted for many factors: mileage, color, condition, and even regional location. The price that these tools give you should be your transaction price. This is the amount of money you want to have in hand after negotiations.
Research the Competition
There are so many websites that allow people to sell cars independently, so you should look into these and see if they have any inventory similar to what you are selling. See what their asking prices are and compare them to your own. Compare the condition of the cars, the mileage, and location, as well. This could help you in setting your asking price.
Setting the right price will determine whether or not you will get a call right away or you will be waiting weeks to hear from a potential buyer. There are many resources online to assist you in finding the perfect pricing for your car, but we hope we were able to give you some tips to make the process a little easier on you.
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Car Trade-In Value: How to Price Your Ride | NerdWallet
Fair Market Value | Craig Swapp
How to Sell Your Car | Consumer Reports