It’s exciting buying a car, new or used, but it can be stressful getting rid of your current one. That’s why most people take the path of least resistance and trade their used cars in. They want to avoid the hassle of selling it on their own. Regardless of your decision, it’s important you know the true value of your car before entering into any negotiations over its price.
There are three values for any used car: the trade-in price, which is always the lowest and is what a dealer will pay you for your vehicle; the private party price, which is what two individual buyers will negotiate; and, the retail price, which is what a dealer hopes to sell a used car for to another buyer. We’re going to deal with the first two values (trade-in and private party) because we’re mostly dealing with you selling your car.
However, if you’re concerned with what you’re paying retail, jump ahead to Setting the Retail Price. It will explain how much you can expect to pay retail when buying a used car.
The most important step in this whole process, though, is determining your car’s condition. It’s a subjective step that requires you to be as objective as possible. You can set an accurate value for your used car without being honest about its actual condition.
