If you’ve been contemplating getting a new car, you’re likely weighing the pros and cons of selling or trading in your current vehicle to open up more financial options for an upcoming purchase. Knowing how much your current car is worth is essential to deciding whether selling or trading in is the best option for your needs, and knowing how to get an accurate evaluation is crucial. 

At Auto Loan Hub, we know that selling your car is exciting, but it can also bring a few headaches and points of confusion if you don’t have the right information. Below, we’ll go into some of the top ways to determine your car’s market value, including a few of the top factors that influence its worth. Read on to learn more.  

Understanding Depreciation

First and foremost, it’s important to know that depreciation is an unavoidable factor that will influence the value of your vehicle, no matter how pristine it may be. On average, a new vehicle depreciates by about 15-20% in the first year*, and up to 60% over five years, with the speed of depreciation varying depending on the brand, model, and condition of the car. Many are surprised to learn that luxury cars like BMWs or Audis tend to lose value faster than more affordable, reliable brands like Toyota or Honda, but staying on top of maintenance (more on that in a moment!) can help to mitigate some of the natural depreciation that occurs over time. 

Check Online Car Valuation Tools

If you’re not sure where to start when determining your car’s value, fear not! Plenty of online tools can help you determine its approximate value, with two of the most popular platforms being Canadian Black Book and Kelley Blue Book. Both of these tools give you a solid baseline for understanding your car’s market value and can help you determine what sort of pricing may be best moving forward if you’re considering a private sale. 

Market Demand and Timing

It’s important to realize that one of the biggest determinants of your car’s value is the demand for your specific model. In periods when gas prices are soaring, for example, buyers may be less likely to purchase large SUVs and trucks that burn more fuel. Timing is also key, as buyers tend to prefer purchasing during the warmer months when it is easier to test drive and the financial strain of the holiday season has passed. 

You can assess market demand and get a good understanding of going prices by looking at online marketplaces or forums and even by chatting with friends or family members who have recently sold similar models. 

Consider Your Car’s Condition and History

Beyond the make, model, and year of your car, the overall condition plays a serious role in determining the value. Well-maintained vehicles with no accidents, regular servicing, and clean interior and exterior can fetch a higher price than a car with visible damage or mechanical issues. Gather your maintenance documentation, including service records, accident history, and more, to make sure you’re able to provide buyers with a compelling reason to settle on your asking price. 

Trade-In vs. Private Sale 

It’s important to know that your car’s value will differ depending on how you sell it. If you trade it in at a dealership, for example, you may save yourself the hassle of having to sell independently; however, you’ll also likely receive less for your vehicle than from a private sale. Consider what your time, resources, and future goals are worth, then weigh this against the current value of your car to decide what option is best for you. 

Selling Shouldn’t Be Hard

Knowing how much your car is worth is crucial when selling or trading it in. Understanding core factors that influence asking prices, like deprecation, condition, and even market demand, helps keep you in the driver’s seat when it comes to moving forward. 

Need help with the next steps? At Auto Loan Hub, we’re here to help Canadians sell and buy vehicles with confidence and peace of mind with industry knowledge and loan resources you can trust. 

Contact us today to learn more!