How To Set The Price of Your Used Car
Are you in the market to sell your used car and are wondering how to set the price for it.
There are many factors that determine the price of the car. Of course there are factors like the condition of your car but the most important thing is how quickly you want to sell your used car and if you want cash for it or want to trade it for a different car.
So let’s talk about setting the price so you can sell your used car quickly.
The starting price point for most cars is the value listed in Kelly’s bluebook or similar reports that value your car based on its condition. This is the price where the negotiation begins to sell the car as is without any warranty.
Once you have your car value, compare it with other cars of the same model and same condition in the market. You need to price your car competitively so it sells fast.
If you are in a rush to get quick cash, you could drop the asking price of your car by 10-20%. You can list it 10-20% below market price and explain that you are listing for a lower price to sell quickly and not because there is any defect in your car.
If you want to sell it fast, you can also just go to a car dealer or an auto trader and sell it quickly.
Now if you added some additional features in your car, made some improvements or additions, you could charge a little more for that. Let’s say you have a new high end music system that does not normally come with the car you could ask a little more money for it or take it out so you can use it for your next car. Items like these give you bargaining power.
Along the similar lines what affects the sale price is the condition of your car. Did you recently have a major accident? Is there a major problem with the car or is there a problem on the horizon? Is the paint peeling off? Are the tires old and bald?
Remember the starting price point is the value of your cars model and average market condition. For anything that is less than the market price you have to be prepared to bring the price down and for anything that is better than the market you can ask for a higher price. And you can even use one to offset against the other. Let’s say you have a broken mirror but a high end music system can offset the loss in price because you are offering something more.
Finally, if you are willing to trade your car and buy a new car from the dealer, you can expect to get a little higher price than if you were to sell it for cash. Dealers can negotiate more here because they will profit when they sell you a car and again when they sell the car they will get from you in a trade. This gives them more margins to play with.