3 Reasons to Know the Value of Your Car

Cars are depreciating assets because as soon as you leave the dealership floor your car starts dropping in value. The exception is classic or collectable cars.

Even though your car is losing value it does still have some. If you want to sell your car, trade it in or are looking for insurance then you need to know what the value is.

trade and retail value

What is the Difference Between the Two Prices 

Your car will actually have two values attached to it those being trade and retail value.

The trade value is what you will receive if you trade-in at a dealer. The retail value is what the dealer can then sell your car for. 

As a dealer needs to make money the trade value will be less than retail.

These values can be treated as a guide as the final price will be dependent on the mileage, vehicle popularity, age and condition. As a general rule the lower the mileage and the younger the car then the higher the value.  

3 Reasons to Know the Value of Your Car

You need to know both of these values as they can be used as a guide in different scenarios. 

Insure it at the Right Price

Your car should be insured at the retail value or as close to it as possible so that if anything happens you can replace the car.  

Get the Right Trade-In Price

If you are selling or trading in with a dealer then you need to know the trade value. You can ensure that you are getting a fair price and use it to negotiate with the dealer.

Price It Right for Private Selling

If you have opted to sell privately because you can get a higher price then you need both values so you can price it somewhere in-between.

Interested buyers will be wanting a better deal than what they could get at a dealer and you will want to make some money on your car.

Classic Car Values 

Classic cars are generally older and won’t have a trade and retail value. With cars like this, the price is determined by the condition and the rarity of the car.  

You will need to do your research here to find the right price for your classic.

How to Know What It’s Worth

You can have a look on car selling platforms and see what others are pricing a vehicle like yours for. You can use platforms like Drift where you can request a free and instant trade and retail value.

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