How often do you see the price of a car which seems inflated? All sellers want to get the largest premium from their deals, that is why they have incentives of setting prices higher than vehicle’s fair value. If buyers don’t know the just values they will have no other alternatives than to pay it. Smarter buyers are those who know the fair value before negotiation with sellers, so that they know key arguments for supporting their discount proposal. And if you want to be such a smart buyer, there are 4 ways how you can discover and benefit from a vehicle’s just value.
4 ways to determine the fair value of a used vehicle:
- Estimating it yourself: Although used cars valuation requires a lot of experience, you can make some assumptions and estimate just value yourself. Consider cost of new vehicle, number of accidents, its salvage status, number of recalls, and mileage, which will substantially decrease the fair value. Most of these facts may not be available so don’t hesitate to visit or similar sites and check for main red flags;
- Using online bases or digital finders of used vehicles: The most precise estimate of a vehicle’s just price is a market one (the one determined by competitive market conditions). Visit the site like with miscellaneous options of the same auto and compare prices given its characteristics. Take an average of options which appear similar to one you’d like to choose and thus you will find its fair price;
- Using online calculators and fair value estimators: If buyers don’t want to make a research on every vehicle they’d like to buy, the Internet is filled with car value calculators which can give the fair value estimate in a second. You can estimate its fair price even while standing in front of a used car’s seller and talking about this car;
- Ask a local used vehicles dealer or somebody experienced in car sales: If buyers know which car do they want to purchase and they have some time - they shouldn’t hesitate to ask somebody experienced which price should they expect. They know the market very well and they will not refuse you with an answer (even if you ask car dealers, they will be immensely courteous as they want you to return back someday).
What to do if the Fair Value is Lower than Seller’s Price?
Used vehicles market is the place where you can always find a better or a cheaper option. Anyway, it is never a reason to reject the idea of buying it. Contact its seller, tell that you know that the fair price is the amount you’ve estimated and tell that you will buy if seller provides a discount. If you ask an official dealer, this may not work (as their price includes rental payments, workers compensation etc.). But when we talk about average car sellers, they will agree. Most of them set prices so as to sell their auto faster and they rarely compare them with market ones.