How to Accurately Price a Used Car for Sale

How to Accurately Price a Used Car for Sale

Posted on February 18, 2022

Ever wondered how a dealership appraiser is able to accurately price a used car for sale? Want a peek behind the curtain of a dealership that buys used cars?

Used car values are largely subjective but there is also science that goes along with the art of valuation.

If you’re planning to sell your car to a dealership, here’s a little insight into how we come up with a value for that car.

Valuing the used cars we buy

We have a process when we price a used car for sale. It makes sure we apply fairness to every appraisal and treat every car exactly the same.

That process takes into account:

• Vehicle make, model and trim
• Current market price
• Any extras added to the car
• Year and mileage
• Service history

Vehicle make, model and trim

As you know, the manufacturer, model of car and trim level all have a bearing on how desirable and how valuable a car is.

Some brands cost more than others, some are more sought after than others and some are more readily available than others. All of which feeds into a valuation.

It’s the same for models and trim levels. Some models sell many times more than other models from the same manufacturer.

Higher trim levels are more sought after and more valuable because they tend to have more technology and features.

Current market price

All that feeds into the current market prices paid for cars of the same year, make, model and trim. We check multiple sources, including within the dealership network and trade price guides to come up with a fair valuation.

Prices can vary by province but we try to come up with the most relevant valuation possible regardless of where you’re from.

Any extras added to the car

As we mentioned earlier, higher trims tend to be worth more because of the extra features. The more features, the more valuable the car is.

That’s partly down to those features costing money to install but also the extra desirability they bring.

Year and mileage

Year and mileage factor into a car valuation quite strongly. Newer cars are worth more because the design is more current and it will have the latest features.

Mileage factors because lower mileage cars will have suffered less wear and tear. Higher mileage cars will often require much more maintenance and more frequent servicing or repair.

Service history

Service history has a minor bearing on a car’s value because it shows us what we’re buying.

A car with a service history has usually been looked after better and is less likely to be using parts that should have been replaced thousands of miles ago.

A car without a service history is an unknown quantity and poses a risk. That will be reflected in the valuation.

These things, along with the general condition of the car, feed into the valuation we provide for all cars we buy.

If you’re looking to sell your car, we’d love to buy it for a great price! Simply fill in the form below and we’ll get back to you ASAP! 

Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles!