When you plan on selling a vehicle and you’re trying to price it just right, daunting doesn’t even begin to describe the process. You want to find the perfect balance between a competitive asking price and maximizing profit. There are few steps you can take to ensure you’re selling your car for all it’s worth.
Gathering detailed information is an important first step. You can use sites like CarsandDrivers.com or Edmunds.com as strong starting points. Incorporate key details, like the make, model, trim, year, mileage, condition, and any unique features or upgrades, into your research.
While it’s great to have an understanding of what goes into your vehicle’s value through your own research, it’s always a good idea to get a second or third opinion from an expert. Services like Kelley Blue Book (KBB) and Edmunds, provide estimates based on the details you provide. These platforms consider current market trends, regional demand, and historical sales data to give you a ballpark figure.
You can also get a third-party professional to assess your vehicle. Experts can provide a fair evaluation of your car and might notice certain features or issues you might’ve missed. You won’t be blindsided by a problem you weren’t aware of and you might even find your car is more valuable than you originally thought.
Another important step in correctly pricing your vehicle is to check out what similar cars in your area are going for. The closer the vehicle is at matching your vehicle – be it trim, mileage or add-ons – the better. You can use these prices as a foundation for your car when trying to determine its value. Remember to adjust your price based on the condition of your car and any additional features or upgrades.
For many drivers, their car has been with them through thick and thin. You’ve braved countless journeys and maybe your car got a couple scars – or dents – to prove it. While the storied history of your car can serve as a sign of its quality and reliability, buyers might hesitate to spend too much depending on the long lasting damage your vehicle has suffered.
On average, reconditioning costs can range from $500 to several thousand dollars, depending on the car’s condition. For example, a thorough detailing and minor dent repair might cost around $600, while replacing worn-out tires and fixing mechanical issues could cost $2000. By factoring in reconditioning costs, you can set a realistic price that someone is willing to pay for your vehicle, based on its condition.
Market demand also plays a crucial role in pricing your vehicle. Certain types of cars are more popular in different parts of the country and/or at different times of the year. For instance, convertibles tend to sell better in the spring and summer, while SUVs and trucks are in higher demand during the fall and winter. You should also factor in the size of the potential buyer audience. A 4-door SUV is likely to appeal to a wider market than a 2-seater Porsche. Depending on the makeup of the surrounding area, you can encounter different priorities for individual buyers.
A report by Edmunds finds that SUVs and trucks accounted for over 70% of all new vehicle sales in 2023. Even if this stat pertains to new vehicles, the high demand also impacts the used car market. By understanding market trends, you can strategically price your car to attract the right buyers at the right time.
And don’t forget to factor in the overall market. According to KBB, in June of 2024, the average used car was listed for $25,251, down about $400 from May’s price and more than $1,700 from June of 2023. So far in 2024, there have been over 21 weeks of dropping used sale prices, as noted in a recent CarEdge article. You can estimate that if demand for used vehicles is decreasing, your asking price might as well. Keeping your finger on the pulse of the market is crucial to making sure you don’t miss the mark on your vehicle’s value.
Accounting for the different factors that go into properly setting the selling price for your vehicle can lead to a quick sale with multiple offers. It might take some time and energy on your part at the beginning, but setting a realistic price will all be worth it when your vehicle is sold!