Knowing the value of your car is important for several reasons like trading your car with another vehicle, selling the car at the best possible price, or claiming compensation from your vehicle insurance company. This estimate helps the owner understand their vehicle’s worth and aids in closing the final deal with satisfaction. Today we will share with you vital information to help you figure out various types of car values of the vehicle and assist in making the right choice. 

Residual Value

A vehicle will lose its value in terms of money over time mainly due to the usage and availability of newer car models with upgraded features. Depreciation or resale value is the expected amount your car could be sold after purchase. On average, the resale value falls between 40 to 50 percent of the car’s price. Besides vehicle usage, the build quality of a car directly affects its resale value. For example, a vehicle built with premium quality materials will have a good resale value whereas a cheap-built with average materials will have a poor resale value. If you go for a relatively cheaper car, remember that its residual value will be around 20 to 30 percent, making you lose money. Nowadays, you can easily find a lot of vehicle value calculators that you can use to find out the depreciation

Know the Terminology

It’s always better if you understand exactly the terms used when buying or selling cars. Having complete knowledge of your vehicle’s condition and the industry-specific phrases related to car value will surely help you make a better decision. Here are some important ones for you to go through. 

• Retail value is the amount a dealer charges you for buying a used car that has been refurbished.
• Private-party value is the amount the car owner wants to sell to another person. This trade between two private individuals eliminates the need for car dealers, ending up saving markups or service fees. Unless you are an automobile enthusiast and know everything about vehicles, buying or selling a vehicle privately can become disastrous. Seattle is a growing city with lots of new drivers that add up every day. Virtually every automobile guru including this dealer in Seattle suggests that inspection from a professional is essential if you are planning to buy or sell a vehicle privately. This will ensure that the automobile you are buying or selling is safe to drive and whether it requires refurbishment or not. 
• Trade-in value is determined by the dealer after complete vehicle inspection and varies depending on the car’s condition.

Gather Information

It is necessary to collect relevant information on your vehicle before you think of selling it. Try to figure out the events since the car’s purchase that could have resulted in its depreciation. This can be an accident or a major fault in engine parts that ended up in the replacement of parts. Here is some relevant information you need to collect before selling. 

• Features of a vehicle are improving day by day. Each time a newer model of a vehicle is launched, it precedes the older models in the vehicle’s features and acts as a major selling point for the automobile industry. 
• The number of miles driven on a vehicle can easily affect its value. A truck or an SUV with more mileage will have a lower value when compared to a vehicle with low mileage. 
• Inspecting the current condition like the body, paint, and engine are also necessary for a better evaluation. Furthermore, don’t forget the interior and try to repair or replace small parts so that you can get a better value. 
• The vehicle’s color can also influence its value. Depending on the current trends, there are several lively colors like green and orange that have an increased value in comparison to conventional colors. Common colors like blue, black, and white are normally less in demand. 

Value Estimators

You can find numerous vehicle value calculators that can provide you with a rough idea of your car’s value. These estimators gather the relevant information mentioned above and give you an estimate, depending on the market. There might be differences in estimates of these services as each one uses its comparison tools. Still, do your homework and try at least a couple of estimators before you go out to meet a car dealer. Furthermore, you can work on finding whether your car model or make is in demand or not. If you are lucky enough or have aftershock components added, it can become a major selling point and increase the vehicle’s value. 

It is always advisable to give suitable time and put effort into estimating the car’s value so that you are satisfied and have a clear understanding of your decision. We hope that the information shared above gives you a good idea of your car’s worth.