Are you in the market for a new car? If so, in order to have more money to put on a down payment, you might be considering selling the used on that you currently have. However, before you place an ad on Craigslist or you start letting people know on your Facebook page, you might want to see how much your vehicle is actually worth first. That way, you can be sure that you’re charging a fair price and that you’re going to make a good amount of profit off of the sale too.
Have the Car Inspected.
Before we get into the value of your used vehicle, the first thing we recommend is that you have a friend (or better yet a mechanic) inspect your car. Ask them to look at it as if they are considering making you an offer and to provide you with a list of the things that they would want upgraded or changed. DMV.org has a used car inspection list that you can duplicate. Just go to their site and put “used car inspection” in the search field.
Consider its “star rating”.
A lot of things have star ratings, including cars. Automobiles with a five-star rating are considered to be in excellent condition and have all of its maintenance records. Ones with four stars usually have no major mechanic or cosmetic problems. Three stars are cars that have a few issues but do not tend to cost a lot of money to fix. Two stars tend to have quite a few mechanical issues and also have had many serious repairs; sometimes these cars do not immediately pass state or local inspections the first time. A one-star rating means that it’s basically unsafe to drive; that it would be better to sell off for parts. (By the way, it’s the inspection that’s conducted that can help you to come to the conclusion of what your car rates).
Speak with your Mechanic.
Something else that can prove to be helpful is speaking with your mechanic. That’s because if you have a long-standing relationship with them, they can share with you how old some of the parts of your car are (such as your timing belt, fuel pump, etc.) and when it will be time to have those things replaced again.
Compare with the Kelly Blue Book.
Once you have an idea of the state of your car, something that can help you to come up with a price estimate is to figure out how much the make, model and year of your car retails for in the Kelly Blue Book (KBB.com). From the price that you see listed, you can then deduct the amount that it would take for the prospective buyer to make certain repairs. However, if you plan on making them before you sell the car, you can also add what you paid to the listed asking price.
Be Open to Negotiating.
When people go to a place like one of their local Honda, Toyota or Land Rover dealers, one thing that they are usually prepared to do is negotiate a price for the vehicle that they are interested in. The same should go for private party car sales. So say for instance that you have an asking price of $8,000. It is realistic to be willing to negotiate within $1000 of that amount based on what the seller notices needs work or how much cash they can immediately pay. If you are willing to bend a bit, you’ll probably be able to sell your car a lot quicker, so be open to being flexible when it comes to what you believe your car is actually worth.