Estimate a Used Car Value

It’s essential that you are able to estimate a used car value in order to make sure that you are getting a good deal when shopping for your next automobile. Fortunately, there are a variety of resources that you can use as a consumer in order to make sure that the seller’s asking price is accurate. Here is a quick tutorial on used car pricing that you can use as a consumer in order to make sure that the car you are considering is in the correct price range. If you are selling a car, you can use this as a guide to determine a fair asking price.

Pricing References
There are two main used car pricing references that you can use in order to get a good starting point for the vehicle’s value. One is the Kelley Blue Book. Kelley Blue book is fairly well known; they have been compiling pricing information on used cars for nearly 100 years. The blue book value is generally a pretty good ball-park figure for a used car’s value.
Another resource that not as many people know about is the NADA (National Auto Dealers Association) guide. NADA compiles information about car values, supply and demand from used car dealerships nationwide and uses these numbers to calculate a ballpark figure of a car’s value as well.
Both of these resources integrate basic information about the vehicle such as the car’s current mileage, how the vehicle is equipped, and its general condition in order to generate a price. However these numbers can really only serve as a guideline—they are by no means set in stone. Since every car is different, it’s up to the buyer and seller to take the extra steps to determine the car’s true value. 

Vehicle Background
Another good resource is a vehicle background check (VIN check). A car with a clean VIN check will obviously be worth much more than a car with a history of even minor accidents or other problems. Doing a vehicle background check online is easy. 

Vehicle Condition
Some other things that should be taken into consideration once a starting point has been reached are things like the vehicle’s condition—has it been repainted? Are the tires all new and matching? What is the condition of the interior? Does the vehicle have thorough maintenance records? All of these can positively or negatively impact the resale value of the vehicle. 

Modifications and Extras
Some vehicles have aftermarket modifications that might have a positive or negative impact on the vehicle’s value. Some common examples of this are vehicles with comprehensive aftermarket sound and entertainment systems or vehicles that have had extensive performance modifications. Modified vehicles require special evaluation in order to establish a firm value. Remember that although a modified vehicle may appear flashy and alluring, unless the work was completed in a quality fashion the modifications can actually have a negative impact on overall resale value.

How To Test Drive a Used Car

Taking a smart test drive could land you the car of your dreams, like this 2007 Mitsubishi Eclipse GT Convertible.

The most important thing to remember when test driving a used car is you are the customer. That's how you test drive a used car. The customer is always right. You set the agenda when it comes to your test drive – not the sales rep or the owner if it’s a private sale. If any aspect of the test drive makes you feel uncomfortable – walk away. Trust your gut feelings. Preparation is key. Make sure you’re an informed used-car shopper before taking the test drive. A little homework will put you in a used car that exceeds your expectations. Also, this isn’t the time to diagnose problems. That’s not your goal in a test drive. You want to identify problems for your mechanic to inspect and offer solutions, including price. Don’t try to solve a car’s problems during the test drive.

Five things you need to know when buying a used car

When purchasing a used car, it is important to understand how dealerships make their money.  You should keep in mind that the purchase price of the car is far from the only way the dealer can maximize the amount of money they can make off of selling you a used car.   If you understand the other ways they can make money, you can make sure you don't become a victim of good salesmanship.

1. I would say number one trick that is used is charging you a higher rate on financing than you can get on your own. The dealership gets paid a fee for overcharging you on the rate, so always arrange financing before you go to the dealership. Don't tell them you have done so until you are ready to pay. They will get angry and say things like the financing check you brought is no good, but just ignore this tactic. Let them know the only way they are selling the car is to accept your outside financing.   You will probably face less aggravation if you refuse to even fill out a credit application.   You don't need an additional credit inquiry anyways. They get angry at this because they offered you a good price on the car while planning to make their money on the financing.

2. Extras such as undercoating, dealer added options, and longer warranties can all be shopped around for after buying the car. If you buy them when purchasing the car, you may not be getting the best deal.

3. Chances are if the car your buying has been in an accident, the dealer won't tell you even if they know it has. If you don't trust yourself to see the signs of repair work, have a trusted mechanic look over the vehicle. Cars that have been in accidents often have greater maintenance problems than those that haven't.   Services such as Carfax may be helpful, but can't guarantee they have all accident information.  Some people never report accidents and fix the car themselves to keep their insurance rate lower.

4. If you plan on trading in a vehicle, don't expect to get its true value from the dealer. They are going to underpay you for your vehicle. The only tactic which may get you a fair price for it is if you refuse to do a deal unless they pay off your current auto loan. Otherwise you may just be better off selling it on your own.

5. The dealer always wants you to buy the most expensive car your willing to buy and will repeatedly suggest the nicer more expensive car, know what you want before you begin to deal or you may end up buying more car than you can afford.

You’re the one that has to live with the car for years, so don't buy on impulse and take the time to get the best deal.