When it comes to selling your car or trading it in for a new vehicle, knowing the accurate resale value is essential and can help you get a fair price for your car while avoiding financial hiccups. Vehicles rapidly depreciate over time, starting from the moment they leave the lot. Whether you’re a first-time seller or a seasoned car owner, understanding how to calculate resale value and why it matters can make a big difference in the outcome of your sale or trade-in.
Below, we’ll take a closer look at how to determine the resale value of your car and why it’s important to do so when listing your vehicle in Canada. Read on to learn more!
Why Determining Resale Value Matters
While many people are aware that buying a vehicle is a major investment and requires some homework to set yourself up for success, not everyone is aware that you’ll want to put equal effort into listing your car once you decide to sell. While you could simply pick a number that “sounds right” and hope for the best, going in informed allows you to have the best chances of a smooth selling process while maximizing your profit. Knowing your resale value helps with:
Maximizing Sale Potential
Knowing your car’s worth makes it easy to set a competitive, realistic price without having to worry about underpricing and leaving money on the table. Putting in the time to figure out what your car is valued at makes sure you put your best foot forward financially, allows you to negotiate with confidence, and ensures you don’t lose out on valuable profits.
Should you decide to trade in your vehicle instead, knowing your car’s value will help you negotiate with dealerships and prevent you from accidentally accepting a subpar offer.
Helps with Financial Planning
Being able to accurately value your car doesn’t just ensure you list the right price; it also creates a reliable framework that allows you to financially plan ahead and estimate how much of a profit (keeping in mind the likelihood of negotiations and building this into your posted price) you’ll make. Proceeds from car sales often go to other major expenses, like car upgrades, moving costs, etc.
Avoiding Scams
Unfortunately, selling on the private market isn’t without its share of risks. Sellers can sometimes fall victim to scammers or lowballers without the proper information on hand. The more you know about the worth of your vehicle, the better prepared you are to move on from fraudulent or manipulative offers.
Best Ways to Determine Your Car’s Resale Value
There are several ways to get an accurate evaluation of your car’s value. Some of the most popular methods include:
Online Valuation Tools
One of the quickest (and most reliable) ways to determine your car’s value is to use online valuation tools. Resources like Canadian Black Book and Kelley Blue Book offer free valuation estimates based on your car’s make, model, year, mileage, and condition, giving you a leg up on the competition.
Check Market Comparisons
The car market can be fickle, and even with a professional evaluation, sometimes going prices may not reflect your quoted value, depending on consumer demand. To stay on top of what’s current, look at online marketplaces, paper listings, and online sales forums to make sure you’re able to price according to what’s most relevant to your market.
Consider Vehicle History, Condition and Maintenance
If your car has a clean history and has been well-maintained, it will likely have a higher resale value. Buyers want assurance that the vehicle has been properly cared for and being able to show that you’ve stayed on top of routine maintenance and servicing, are accident-free (or have gone through a valid repair shop), and have kept the vehicle in the best condition possible goes a long way towards boosting your viable listing price.
Newer cars or those from brands known for their reliability tend to retain their value longer, and you may be surprised to learn that certain luxury cars, depending on their features and mileage, actually depreciate in value faster.
Sell With Confidence with Auto Loan Hub
Determining your car’s resale value in Canada is crucial whether you’re looking to sell or trade it in. By following the steps above, you’ll be better equipped to sell your car at a fair price or trade it in without feeling short-changed.
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!
