If you’re considering selling or trading in your car, you may have questions about what your vehicle is worth. In this guide, we at the MarketWatch Guides team cover everything you need to know about how car value calculators work, the factors that determine pricing, the best sites to sell your car online and how to make the most of selling or trading in your car.
Key Takeaways
- You’ll need information about your car’s make, model, year and condition to calculate its market value.
- Factors like location, market conditions and even who you sell to can impact the price you receive for your car.
- Get the most value for your resale or trade-in by cleaning your car, making any possible repairs and comparing offers from dealers and private buyers both online and in person.
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The MarketWatch Guides Team is committed to providing reliable information to help you make the best possible decision about financing for your vehicle. Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best auto loan companies. We collected data on dozens of loan providers to grade the companies on a wide range of ranking factors. After 300 hours of research, the end result was an overall rating for each provider, with the companies that scored the most points topping the list.
Learn more about our methodology and editorial guidelines.
How Much Is My Car Worth?
The amount you can sell your car for depends on several factors. Even though many dealerships and car value authorities use similar information to determine offers, estimates and value ranges, different dealerships and private buyers may offer you varying amounts for your vehicle.
What Affects a Vehicle’s Value?
Below, we’ll cover the primary elements that determine your vehicle’s value.
Vehicle Age
The general rule is that as your car gets older, it becomes less valuable. This doesn’t apply to vintage or classic cars that gain value for their restoration and rareness on the car market. In most cases, cars that are past three to five years old are more likely to have mechanical problems and suffer breakdowns from use over the years. They also typically lack the most up-to-date car technology that newer models have.
Make and Model
Luxury brands demand higher prices when they’re bought new. Similarly, when you sell a car from an automaker brand known for its luxury vehicles with great parts and special safety features, you’re more likely to demand a better price from prospective buyers.
Car brands that have high dependability can also fetch higher prices because they’re less likely to have mechanical problems. According to the J.D. Power 2023 U.S. Vehicle Dependability Study℠, the top three most dependable car brands are Lexus, Genesis and Kia. If you own a car from one of these brands, for example, you may be able to get more when selling it.
In terms of model, some cars are built for leisure and speed while others are built to hold more or haul heavy materials. Often the price you can sell your car for depends on what a buyer is looking for.
Vehicle Condition
If your car has suffered multiple mechanical problems in the past or shows signs of corrosion, paint reduction or environmental damage, you may not be able to sell your car for a top price. It’s important to keep your vehicle as clean, dent-free and mechanically sound as possible before selling. If your car has mechanical problems, try to resolve these issues before putting it on the market.
How You Choose To Sell
When it comes to how you sell your vehicle, you have several options. You can choose to sell your car to a dealership, an auto marketplace or a private buyer. If you’re looking for a new car or want to upgrade, consider using your car as a trade-in. However, the method you choose to sell your vehicle can impact your potential selling price.
According to J.D. Power, trade-in values for used vehicles tend to be lower than a given car’s potential market value. This means that you’ll get less money trading in your car to a dealership than you would by just selling it outright. This is typically because a dealership has to put a lot of work into your traded-in vehicle to resell it.
Similarly, cash and other purchase offers from dealerships may be lower than a car’s expected market value. Dealerships often make offers that fall below potential resale value to ensure they recoup expenses and make a profit.
While private buyer-seller transactions can vary significantly, this option allows sellers the most control over the ultimate purchase price and other transaction details.
Current Market Prices
No matter how much you may love your car, most buyers won’t pay you more than the current market value of your vehicle. Whether you choose to trade your car in or sell it to a dealership or private buyer, having an idea of current market prices for similar vehicles can help you set realistic expectations and help with sale negotiations.
Prepare yourself for the car buying or selling process by looking at appraisal values and car value calculators from trusted sources. Photo: Kurhan – stock.adobe.com
Average Car Values
If you’re looking to buy or sell a vehicle, it helps to have an understanding of reasonable prices in both used and new car markets. We’ve provided some average prices for cars below.
New Car Values
According to Kelley Blue Book (KBB), car shoppers paid an average of $48,344 for a new car in July 2023. As more buyers return to the market, sellers are ramping up incentives and inventories are stabilizing, making now an excellent time to consider purchasing a new vehicle.
Dealers and manufacturers are offering higher incentives in 2023 for select types of vehicles. This year, the highest incentives and discounts include those offered for high-end luxury, hybrid and electric vehicles. Fewer or lower incentives are offered for full-size luxury SUVs and sports cars.
Used Car Values
CarGurus notes the average car price for used cars is $28,664 as of October 2023. The company also observes that prices for used cars are trending downward, with auto markets beginning to stabilize after pandemic-related fluctuations.
See how average used car values vary by body style below:
| Used Car Body Style | Average Price |
|---|---|
| Hatchback | $16,569 |
| Wagon | $19,253 |
| Sedan | $20,782 |
| Minivan | $22,158 |
| Crossover | $24,828 |
| Van | $30,125 |
| Pickup | $36,420 |
| SUV | $37,208 |
| Coupe | $37,236 |
| Convertible | $51,830 |
*Prices updated on October 26th 2023.
How Do Car Appraisers Calculate Car Value?
Appraisal authorities like KBB, Carfax, dealerships and others use a variety of elements to calculate your car’s value ranges. Depending on the appraisal authority, they may look at things like your vehicle’s:
- Make, model and year
- Features, add-ons or trim
- Color and condition
- Body style and mileage
- Optional equipment
- Current retail value
- Market trends
- Location
These appraisal sources also look at the current market values of vehicles similar to yours and the typical car prices in your geographic location or ZIP code. Who the car is being sold to also makes a difference — private buyers or dealerships?
Benefits of Knowing Your Car’s Value
Understanding the value of your vehicle can help you determine your net worth when necessary and prepare you for several other situations.
Selling Your Vehicle
Having a clear picture of your car’s value will help you get the best price possible when you decide to sell. Knowing this information beforehand will also save you time on research and vehicle appraisals.
Trading Your Vehicle
Looking for a new car doesn’t mean you have to lose out on your current car’s value. While trade-in offers from dealerships and auto marketplaces are typically lower than others, knowing your car’s anticipated trade-in value can help you negotiate better terms.
Insurance Buying and Claims
If your car has a potential for high-value resale, you’ll want to keep it adequately insured. When you know how much your car is worth, you can make informed decisions regarding your policy coverage, deductible amounts and more.
Additionally, knowing your car’s market value can help you determine whether repairs are a worthy investment in the event of an accident or insurance claim.
Refinancing
When considering your eligibility for auto loan refinancing, lenders will weigh the appraised value of your car against any remaining balance on your existing loan. You may qualify for improved loan terms if your vehicle’s value significantly exceeds the remaining amount on your loan. However, if you’re upside down on your loan, or owe more than the car is worth, you may have some difficulty refinancing.
How To Find The Value of a Car
No matter why you need to know your car’s current market value, you can take a few steps to get a well-rounded estimate.
#1: Gather Information About Your Vehicle
Whether you’re considering a formal appraisal or want to reference online guides or valuation tools, you’ll need some information first. Start your research by gathering information about your car, including:
- Make and model
- Model year
- Vehicle identification number (VIN)
- License plate number
- Mileage or odometer reading
- Trim style
- Additional features or improvements
- Details about its current condition
#2: Consult Established Guides and Estimators
As a starting point, you can cross-reference some well-established car value guides, authorities and estimators. These sources provide varying levels of information about trade-in, resale and private seller values for thousands of different cars. We’ve listed some of the most popular resources below.
| Guide | Resources |
|---|---|
| Kelley Blue Book (KBB) | Price guide that calculates values with proprietary software using data from across the automotive industry |
| National Automobile Dealers Association Guides | Provides data on millions of car sales as well as historical valuation data for vehicles |
| Consumer Reports | Offers ratings and pricing information for new and used cars as well as guides for improving your car’s value |
| Edmunds | Displays ratings, in-depth vehicle information and resources for auto buying and selling |
| J.D. Power | Provides in-depth research on consumer satisfaction with vehicles, plus detailed car reviews and ratings |
#3: Use Online Car Valuation Tools
Car value calculators use automotive market data and your vehicle’s information to provide estimated trade-in values, private seller values and even dealer resale values for that vehicle. You’ll be asked for information including the VIN or license plate number, trim level, mileage, color, condition and more.
Our team recommends saving any estimate you receive and comparing it against estimates or offers from dealerships, private buyers and even other car valuation calculators.
Other Car Valuation Tools
Other types of car value calculators may help determine how much you can sell your car for:
- Depreciation calculator: Demonstrates how your car may decrease in value over time
- Scrap or junk calculator: Estimates how much you can receive for your junk or inoperable car
- Totaled car value calculator: Provides estimates of a totaled car’s worth to compare with an insurance company’s total loss car value
- Diminished value calculator: Estimates how much a car’s value decreases after an accident
#4: Research Market Prices
You can round out your idea of your car’s value by closely examining current market prices for similar vehicles. Be sure to check both dealerships and private seller marketplaces like Autotrader for price ranges.
#5: Get a Formal Appraisal
As a final step, you can request formal appraisals and offers from dealerships, private buyers and online auto marketplaces. You aren’t obligated to purchase after your appraisal and can compare offers to receive the best price.
Remember that offers and appraisals are typically conditional. If you add too many miles to your car, wait too long or damage your car after your appraisal offer, it may no longer be valid.
Terms To Know When Determining Your Car’s Value
While researching your car’s value, you may come across terms like the ones below.
| Term | Meaning |
|---|---|
| Depreciation | The rate at which a vehicle loses value over time |
| Dealer resale value | The amount a dealer may be able to sell a used vehicle for |
| Certified pre-owned value | The value of a used car backed by thorough inspections, repairs and typically a warranty or service contract |
| Trade-in value | The amount of money a dealership or auto marketplace will pay towards the purchase of a new vehicle in exchange for your existing vehicle |
| Private-party value | The typical price sellers can expect to receive by selling to a private buyer |
| Actual cash value | The value of the car in its current condition if sold immediately |
Tips To Get the Most Value for Your Vehicle
Ready to look at selling or trading in your vehicle? Below, we cover how to get the most out of the process.
Research the best places and times to sell your vehicle before committing to one option. Photo: Feodora – stock.adobe.com
Where To Sell
After learning the value of your vehicle, it’s time to decide where you’d like to sell. Dealers and car buying services like Carvana can save you time on the sales process, but you may get a better selling price on private buyer/seller markets like Craigslist or Autotrader. Read more about your options below.
Dealers and Car Buying Services
Dealers and car buying services are the most accessible option when it comes to selling your vehicle. Thanks to partnerships with buying services and financial institutions, these companies can often make instant offers for your vehicle and provide perks such as free pickup or delivery services and in-place inspections.
However, dealers and car buying services typically purchase cars intending to resell them. This means they may make an offer for your vehicle that’s below the market price in order to ensure they can make a profit.
You can work with local brick-and-mortar dealerships or compare offers from online services. Our team recommends considering both as part of a well-rounded selling process.
Private Marketplaces
Private buyers typically pay fair prices for safe, operable vehicles. Sometimes, private buyers may also pay more for junk or inoperable vehicles if they’re looking for spare parts or want to do personal repair projects.
Note that selling on private marketplaces may increase the potential of scams and poor offers. Never disclose personal information on private seller marketplaces and always meet potential buyers in safe, public locations.
Junkyards
If your old or inoperable car isn’t catching the attention of dealers, car buying services or private buyers, you may need to consider your local junkyard. These services will tow your car and sell it for parts, providing a guaranteed turnaround, even if not the most profitable one.
When To Sell
The next question many first-time sellers have is when to sell their vehicles. The answer varies based on factors like the car’s features and history, plus the owner’s personal goals.
If you want to get the most out of your new or used vehicle resale, consider selling it when it has the most value. Don’t wait too long for the right offer or your car’s value may depreciate considerably.
Another aspect to consider is repair costs. If your car requires work, weigh the cost of those repairs against the vehicle’s overall value. If the cost of repairs exceeds your car’s value, it may be time to sell or consider trading up.
How To Prepare Your Car for Sale
Whether selling or trading your car in, you’ll need to prepare it for the process. Consider these steps a guideline for prepping your car for sale:
- Clean out your car. Remove any personal belongings, documents and other items before thoroughly cleaning the interior and exterior.
- Make any necessary repairs. If your car needs new tires, brakes or other reasonable repairs, complete these to increase your car’s selling potential and value.
- Collect required documents. Ensure you have the valid title and any applicable lease or loan information handy before requesting offers or listing your vehicle.
- Pay off existing loans if possible. If you owe on your car loan or lease, consider paying off these amounts first to streamline the selling process and increase your short-term profit.
Car Valuation Calculator: The Bottom Line
To get an accurate view of your car’s value, compare values and offers from multiple car buying guides, dealers and private sellers. This view can help you determine where and when to sell your car and what steps you’ll need to take to get the most out of the transaction.
Recommended Online Car Selling Companies
If you’re ready to sell your car, our team recommends comparing offers from local dealerships and buyers with those from Cars.com and Peddle.
Cars.com: Editor’s Choice
When selling your car to an online car buying service, we recommend beginning your search with quotes from Cars.com. Cars.com buys cars directly, offers private sale options and accepts trade-in vehicles in fair to excellent condition. The company provides decent instant offers that are good for 72 hours.
Keep reading: Cars.com review
Peddle: Good Choice for Older Vehicles
If you’re trying to sell an old, inoperable or junk vehicle, Peddle should be your first online stop. The company specializes in buying old or junk cars from sellers and provides instant offers valid for up to seven days. Peddle also has positive customer feedback on the Better Business Bureau (BBB) and Trustpilot.
Keep reading: Peddle review
Used Car Value Calculator: FAQ
Below are some frequently asked questions about calculating car values:
The best way to understand the value of your car is to compare values and offers presented by dealers, private buyers and reputable car buying guides like Kelley Blue Book (KBB). Consider as many offers and estimates as possible to understand the range different buyers may pay and what factors into those decisions.
Cars depreciate in value over time and have the most value within the first five years of their manufacture date. To maintain your car’s value and resale potential, keep your vehicle in the best condition possible by staying ahead of maintenance and repairs.
Depreciation rates vary based on several factors, but most drivers can anticipate around a 20% drop in their new car’s value within the first year of ownership. That value could reach as much as 60% within the first five years, according to KBB.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best platforms to sell your car. We collected data on several providers to grade each company in five key areas. The end result was an overall rating for each provider, with the car selling platforms that scored the most points topping the list.
Here are the factors our ratings take into account:
- Industry Standing: Our research team considers ratings from industry experts and years in business when determining this score.
- Platform: Platforms that offer a variety of features, including instant offers and multiple sales options, are more likely to meet consumers’ needs.
- Cost: To compare providers’ average offer prices, our team conducted a secret shopper analysis for a variety of vehicle types. We also considered the fees companies charge to use their platforms.
- Support: Car selling companies that offer strong transaction support received the highest scores in this category. This includes offerings like free pickup service as well as how quickly you receive your payment.
- Customer Experience: This score is based on customer satisfaction ratings on the BBB and Trustpilot as well as our team’s experience reaching out to each platform.
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
