How Much is a Used Car Really Worth?
You must know the real cost of the car before making purchase. Whether you buy from a dealership or the private seller, it is important to know the current cost of the car. To find out, how much is a used car it isn't necessary to be the expert. Actually in 85 percent of cases of the price of used cars are connected with the cost of new similar cars, cost of the certified used cars (car which are sold by dealers), balance of supply and demand in the market, a condition of an economic situation in the country and of course confidants of insurance companies who reduce the market value of the car on the basis of natural depreciation.
It also depends on a number of factors, such as age of the vehicle, the additional equipment, and even the region, where a car is sold. Also the prices of used cars are regulated by various companies which are engaged in commission sales or repayment. Therefore really to calculate the cost of a car which is most approached to the market it is necessary to conduct the whole research, having studied pricing in all areas of the automobile market. For any used car there are two prices: retail and wholesale.
This price is higher of these two prices, you pay it for a car if you buy the car at a dealership. If you buy it from the private seller, you can pay the smaller price. Retail price is also much higher, than the price which you receive for the car which is handed over on account of payment new, because it includes the profit size for dealer.
One more stage which you have to make to determine the cost of the car. Many automobile dealers accept second-hand vehicles according to the Trade-in program. What is it? This system of repayment of the car at the owner, without transfer of cash. This program provides repayment of your car in offset again, acquired. As a rule, according to this program, will offer you much more money, than various dealers offer, but, nevertheless, the total amount all the same won't be fair as any company which to redeem your car needs also to resell it and to earn as much as possible profit. Nevertheless, it is an important stage for definition reality of market value of any car. Contact any dealer who works with your make of the car, and ask to estimate the car which cost it will be reckoned in the cost of the new vehicle. But it’s a figure you should know before solving, giving the car to trade-in or to sell it independently.
In case of sale of the car at wholesale price, there can be some prices. 1. The price which the dealer offers the client on account of payment of new (trade-in). 2. The price dealer to dealer. One dealer sells a car to other dealer. 3. Car goes to a wholesale auction, which many do, then there is an auction price. Dealers and brokers can buy auction cars for resale. At any time the middlemen can raise the price, and the car gets new "cost".
Find the balance cost of the car
For a start study all prices of similar cars which are offered for sale on the most popular bulletin boards on the Internet. For this purpose set search parameters, having determined the same year of release of the car, modification and other data. The majority of websites allows you to make it online and then to give you correct cost, depending on parameters. Contact the companies or dealers who buy privately cars for the subsequent resale. Estimate how many they are ready to pay for your car. Be not surprised if the ridiculous sums are offered you. Such companies have such work. The cheaper they will buy the second-hand car, the more will earn profits. But for understanding of the market you are obliged to make it. Or, you can check websites or the printed catalogs which include responses of owners. Check of several sources will give you more information on the prices before you start haggling with potential buyers.
What do sellers ask?
While catalogs and websites can adumbrate to you, you can pay attention to search the car in your region, having narrowed a circle of searches. According to announcements it isn't so simple to find the owner, but it is a good place to begin. Look for the car similar to what you consider from the point of view of parameters.