Before selling your car or going to the car lot, you’ll want to have a firm understanding of fair market value.
Your car’s value will go a long way in negotiating the sales price in the private market. It’ll also be useful for tax purposes.
Formulating the fair market value is not an exact science, but there are some metrics and resources that can help extract a pretty good valuation.
Here are some considerations to remember when putting a price on your vehicle.
Fair market value isn’t static
If your vehicle has spent some time on the market, it may be time to adjust its price. Keep in mind that the fair market value isn’t time specific and can change.
That’s why it’s important to check up on the most recent valuation monthly to see what’s new. Adjust the asking price accordingly.
Fair market value versus trade-in value
These two valuation estimates aren’t the same.
Fair market value is what you can expect to receive in the private market whereas trade-in value aligns to what a dealership would offer.
Fair market value is driven by the market of willing buyers and sellers. Trade-in value will be erratic and will likely fall below fair market value because they are often altered by dealerships trying to close a deal.
Edmunds or Kelley Blue Book
Most consumers are likely to turn to Edmunds or Kelley Blue Book to determine both trade-in and fair market values.
The websites are fairly easy to use and give step-by-step instructions on how to fill out the form to derive the car’s value.
Planet Auto Wholesale
Here at Planet Auto Wholesale, we use several factors in coming up with a car’s value before making an offer.
Vehicles with extensive damage, for instance, will be evaluated at the wholesale value (prior to the accident). Location and current market demand for the vehicle and its parts will also influence how much we’ll offer.
Other factors such as make, model, mileage, and age will guide us in developing a fair price for your vehicle.
Remember, even if the vehicle has extensive damage or mechanical issues, Planet Auto Wholesale is ready to make an offer that’s fair for everyone involved.