Automobile

How much does my car worth?

The value of your car might influence your finances and restrict your options if you decide you no longer desire the car. How much you could make on a trade-in or sale of your car depends on its current market value. If you finance the vehicle, its worth also determines whether you are in the negative on your auto loan, which could result in a variety of issues, such as having negative equity on your vehicle.

How much does my car worth

Let’s explore why knowing your car’s value is crucial, what factors can affect it, and what techniques you can use to determine its value. Well, in this article, the answers to the following questions will be discussed:

  • Why do you need to know how much your car is worth?
  • What are the factors that affect the worth of my car?
  • How do I know how much my car is worth?

So, let’s dive in!

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Why do you need to know how much your car is worth?

Knowing that “magic number”—your car’s fair market value—can empower you to make more intelligent decisions about what to do with it. You might need to know how much your car is worth:

  • When you plan to sell or trade your car
  • When you’re upside down with your loan

 

When you plan to sell or trade your car

Knowing your car’s fair market value might help you establish expectations for bids from dealers or private purchasers and negotiate based on your study if you’re planning to sell or trade it in.

When you’re upside down with your loan

Knowing the value of your car can also help you determine whether you have negative equity, which refers to owing more on your car than it is worth. This can occur if you have a lengthy loan term, made only a little down payment on your car, or made no down payment at all.

It may be more challenging to pay off the loan and sell the automobile if you have negative equity in your car since you may not be able to sell it for enough money to repay the loan debt. Additionally, if you wish to trade in a car that has negative equity, you’ll need to either pay off the remaining balance of your loan out of your pocket or roll the negative equity onto your new auto loan.

If you don’t have the money on hand to pay off your previous loan, rolling it over into your new loan may seem like the best option. However, doing this increases the likelihood that you’ll default on your new loan, and a larger loan amount means you can end up paying more in interest overall.

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What are the factors that affect the worth of my car?

A car’s fair market value might vary depending on several elements, including its condition and whether you intend to sell or trade it in. Here are a few.

Year, make, and model

Simply put, some automaker brands keep their resale value significantly higher than others. View the winners of the 2020 Kelley Blue Book Best Resale Value Awards, which are recognized for outstanding value retention.

Mileage

The number of miles driven affects how much a car depreciates. Your car’s value decreases as the number of miles on the odometer rises.

Vehicle condition

Have you performed regular maintenance? Has there been any kind of damage to your car? Is there significant deterioration? How much you can expect to obtain for your car depends on how much care (or lack thereof) you give it.

Sell or trade-in

Do you intend to trade in your car at a dealership or sell it privately? Frequently, a car’s private-party worth exceeds its trade-in value. To maximize their profit, car dealers set the trade-in value of your vehicle at the amount they would pay to purchase it directly from the producer, or the wholesale value, as opposed to the retail value.

Popularity

Being well-liked pays off when it comes to cars. A dealer might be prepared to pay you more for your trade-in than the wholesale price if your car’s brand and model are popular.

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How do I know how much my car is worth?

You may determine the fair market value of your car using free online tools like Kelley Blue Book, Edmunds, and NADAguides. The following details about your vehicle are required to receive an estimate:

  • Make, model and year
  • Options and features
  • Mileage

To estimate used-car values, these pricing guides combine this data and other information with supplementary data, such as dealer transactions, customer information, market trends, and auction sales. Since each site that estimates the worth of an automobile utilizes a different set of data, the projected value of your car may vary slightly from site to site. However, by using these tools for valuation, you may obtain a general idea of how much you might be able to collect for your automobile when you sell or trade it in.

NADAguides will display the invoice price, MSRP, as well as the lowest and highest prices local buyers have paid for the same make and model. You may get an idea of your car’s trade-in value and private-party value ranges using the tools from Edmunds and Kelley Blue Book.

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In summary

Knowing your car’s current market worth can help you stay on top of your finances and take action if you find that you are in the red, even if you don’t have any immediate plans to sell or trade it in. Knowing how much your car is worth will help you set a fair asking price and bargain successfully if you do decide to sell it or trade it in for a new set of wheels.

That is all for this article, where the following questions are being answered:

  • Why do you need to know how much your car is worth?
  • What are the factors that affect the worth of my car?
  • How do I know how much my car is worth?

I hope you learn a lot from the reading, if so, kindly share with others. Thanks for reading, see you around!