Determine a Car's Trade In Value
If you're trying to establish the trade-in value for a vehicle, you should remember that a vehicle is really worth just what the buyer will pay for it. At the same time, since there is a standard value attached to a kind of vehicle according to its year, make, model, condition and features, you can establish a ballpark figure for what your car might be worth to a dealer. Some simple steps can help you determine a car's trade-in value.
Contents
Steps
- Look up blue book values. One common blue book value rating tool is operated by the Kelley Blue Book company. An online site will help you figure out the car's approximate worth.
- Go to the Kelley Blue Book site. You will be asked to put in the year, make and model of the used vehicle first. You may also be asked for your zip code. When you are presented with a selection of choices or blue book values, be sure to select the "trade-in value" option. This will give you the trade-in value as opposed to the private sale value or dealer-suggested retail price.
- Input the mileage of the vehicle and all available features.
- Add the condition of the vehicle. The Kelley blue book site categorizes vehicles into four conditions: excellent, good, fair and poor. Read all of these carefully and see which one best applies to your vehicle.
- Add any additional information and check your value. You should finally arrive at a page that lists a range of trade-in values by condition.
- Evaluate any additional issues with your vehicle. Although some of this can come under the category of vehicle condition, some kinds of wear are considered excessive and will lower your basic value. These include engine problems, coolant leaks, transmission issues or anything that affects major systems of the vehicle and requires costly repairs.
- Understand "dealer cost." When you are getting a trade-in value for your vehicle, you are effectively selling it back to a dealer. That dealer has to assume title for the vehicle, find a buyer and make a profit reselling your vehicle. That means your trade-in value will sometimes be less than you think it should be. Even if you have a blue book range for your vehicle, that doesn't mean it's what you'll get when you visit the dealer's lot.
- Negotiate your trade-in value. You'll have to come to a compromise with the dealer on what the two of you think the vehicle is worth. If you do not reach a compromise, you may decide not to trade in the vehicle and to try to sell it on the market or even donate it to charity. In conversation with the dealer representative, you will see what the dealer, as a potential buyer, feels the vehicle is worth.
Tips
- The Kelley Blue Book is not the only blue book value source available for a vehicle. Look at the kinds of blue book tools that notaries and state vehicle agencies use and come to a general idea of what your car should be worth as a trade-in.
