What Is Your Car’s Worth? Importance Of Estimating Car Value
If you have decided to trade or sell a car, then you may be wondering – what is your car’s worth? To put a market value on your car is easier said than done. That is why smart car owners will get a vehicle appraisal.
A vehicle appraisal is the next move in figuring out what your car might be worth. Even if you are not a mechanic, it is important to familiarize yourself with the basics of vehicle appraisal.
Read on to learn more about why vehicle appraisal matters and how to get it done.
What Is Vehicle Appraisal?
Vehicle appraisal, also known as valuation, is the monetary value you assign to your vehicle. This value is based on the current auto market trends, as well as factors that determine your car’s worth.
So whoever appraises your car will look into its age, make and model, mileage, maintenance, and so on.
For instance, personalized cars with aftermarket work done like oversized wheels may get a lower valuation. It is typically because buyers will be wary of how well the aftermarket work was done.
Your vehicle appraisal will come in handy for situations like –
- You want to buy, sell, or trade a car and get a fair market valuation for it.
- You want to estimate the car’s value if it is considered an asset in a divorce, estate, or bankruptcy.
- You are planning to buy or sell a collector car.
Why Is Vehicle Appraisal Important?
Vehicle appraisal should be at the top of your agenda. Here are 4 reasons why!
1. Getting The Best Market Deal
If you are looking to sell, you want a fair estimate of your car’s worth to get the best possible deal in the market. The aim is to maximize the price, and this is a surefire way to establish an accurate valuation.
Moreover, it will give you the confidence you need for negotiating a good deal. The appraisal, along with official documentation like an inspection certificate and history report, will add to the credibility of your vehicle. As a result, the buyer may even be willing to buy the car at a higher market price!
2. Protection Against Low Dealership Valuation
Many car owners go to dealerships when looking to sell off their cars quickly. As you already know, dealerships are famous for buying cars at lower prices. So some may try to undermine your offer and suggest a lower market price. You have to be careful about picking a reputable dealership and protect yourself against unfair valuations.
The valuation will also help you avail dealership discounts in exchange offers when trading your car for a newer one!
3. Fair Insurance Claim
When claiming insurance on your car for loss or damage, you may disagree with the insurance company’s valuation. In such cases, you can make use of the “appraisal clause” given in the insurance policy. By getting the appraisal done yourself, you can earn a fair settlement for your vehicle.
Vehicle appraisals also help with acquiring the car’s value that you can later use for collateral. This way, the appraisal enables you to successfully qualify for a home or personal loan!
Different Car Values
Whether you are doing the appraisal online or in person, you will come across several car values. To find out what valuation you are looking for, it is necessary to understand what each valuation means. Here are some of them.
- Trade-in value – This is usually the lowest amount offered for a car when you trade it at a dealership.
- Dealer retail value – It is the asking price for your car if it were being sold by a dealer.
- Certified pre-owned value – This fetches a higher price as CPO cars are inspected by certified engineers before the sale.
- Private party resale value – This is the price for selling a car to anyone other than dealerships.
Key Players In Car Value Estimation Market
For the most accurate valuation of your car, pricing resources have been made readily available online and offline.
Edmunds is a vehicle appraisal site designed to help people find car prices that are impartial. It has truly pioneered the concept of “True Market Value” by providing a vehicle appraisal calculator that gives the average transaction price. You will better understand what kind of price your car will fetch in your given location.
Kelley Blue Book
Kelley Blue Book has long been viewed as the most popular and trusted guide for timely and accurate car valuations. It presents to customers easy-to-use calculators that analyze private party, CPO, trade, and retail car values.
Moreover, they will help you figure out the future costs of car ownership. This includes fuel costs, insurance, and even the cost of repairing and maintaining as the years go by!
JD Power has built a reputation for accumulating detailed data about cars by surveying real vehicle owners. The data gathered from the verified car owners helps provide dealer pricing. In addition to that, you can see car ratings based on parameters like driving experience and resale value!
Although the ratings are usually given for newer cars, the information proves to be very valuable for car sellers.
By now, the given information should have provided you with a clearer picture of how you can get a reasonable selling price with vehicle appraisals.
One thing to keep in mind is that the appraisal done should be of professional quality. Online vehicle appraisals can give you valuable insights with statistical details about the car model, fuel type, peak selling period, and so on.
The appraisal process has become even more convenient with apps like the CarDr.com Vehicle Appraisal app. It uses the data gathered from CarDr.com’s On-Board Diagnostic scanning technology to create a comprehensive report on the app. You will get a complete analysis of the car’s condition to ease the process of getting a just valuation.
The final worth of your car will be a combination of accurate valuation and your view of the car’s desirability!