Written by: Extended Auto Warranty
Last updated: January 29, 2025
Selling a car can be a great way to make the next step in your journey of car ownership and give you a head start on your next new car purchase. Before you sell a vehicle, though, you have to know how much you can expect to get for it.
The amount that a car is worth to the next buyer is called fair market value, and it is a good way to get an idea of how you should be pricing the vehicle on the used market. Knowing how to determine fair market value will help you sell your old car quickly and get the most from it so you can start thinking about what you want to drive next.
How to Determine Fair Market Value for a Car
The fair market value is an excellent starting point for determining what you should charge for a used car. While the actual value will change depending on things like the state of the local market in your area, the car’s condition, and the method you use to make the sale, it is a good idea to know how much the car worth is by itself. There are a few different ways to determine the fair market value for a car, and they can all help you make the right decision.
Use Kelley Blue Book
Kelley Blue Book, or KBB, is one of the most trusted resources for people trying to determine a vehicle’s value. KBB uses aggregated information from around the United States and historical trends in the automobile market to analyze the specific value of a car model. Before you decide to sell a vehicle, KBB.com should be one of the first places you go. All you have to do is enter the vehicle’s make, model, and year. From there, you will see a range of values that will depend on things like the vehicle condition and the miles on the odometer. Using these values, you can set a fair selling price for your vehicle.
Check Other Comparable Models
One of the other reliable ways to find a good asking price for your used vehicle is to look at comparable models that are currently on the market. While you can search national databases for vehicles for sale, it can be helpful to look for ones specifically on the current market in your state or region. The more you narrow your search, the more accurate the resale value will be. Car values change from place to place, so specificity is crucial. By seeing what other people are currently charging for vehicles that are the same as yours, you can come up with a fair price that is not too low or too high for your market conditions.
Get an Appraisal
If you want to get an exact figure for your vehicle’s fair market value, a professional can appraise it. Vehicle appraisers are usually used to evaluate vehicles that have been damaged or totaled in an accident, but they can also be used to determine what your vehicle is worth in its current overall condition. While you will have to pay an appraiser to assign a value to your car, their expertise and accuracy could make it a good investment. This is especially true if your vehicle ends up being worth more than you originally thought after the car valuation, and you end up selling it for a higher price point.
How to Increase Your Vehicle’s Value
While the fair market value is generally fixed, several things will affect the actual value of a car and what you can get for it on the used market. If you do everything you can to make your vehicle look and perform its best, the chances are that you will be able to charge more for it when it is time to sell it. Knowing how to increase your vehicle’s value will help you make the most of the sale.
Fix Any Mechanical Issues
Any kind of mechanical issue will have a detrimental effect on the retail value of your car on the used market. Before you decide to put your car up for sale, it is a good idea to have all the mechanical issues repaired by a professional, no matter how small they are. This will cost you some money in the short term, but it can end up being a smart financial decision in the long run if it means that you can get more for your vehicle when you decide to sell it.
Get it Detailed
A vehicle that looks its best will almost always fetch a higher price when it goes up for sale. Curb appeal is an important consideration for sales of all kinds, and your car sale is no exception. A thorough, professional detailing job can work wonders and help you get a better price for your vehicle. The more impressive a car looks to potential buyers, the more they will be willing to pay for it.
Have Maintenance Records
One of the biggest concerns for any prospective used car buyer is the mechanical soundness of the vehicle. You can take advantage of this by keeping detailed maintenance records for the car and proving that it has been taken care of throughout its entire time in your possession. Buyers will be much more likely to pay top dollar for a car that has been serviced regularly and professionally maintained. Having documentation of the vehicle’s service record can be a major help if you want to get the most from the sale.
Protect Your Vehicle’s Value With an Extended Warranty
If you plan on selling your vehicle one day, it is essential that you keep it in the best possible condition. An extended warranty will help you make any repairs as soon as they come up so they don’t become bigger, more expensive problems. Plus, some extended warranties are transferable, which can be an excellent selling point for potential buyers. Staying on top of your vehicle’s repairs and service is your best bet if you want to preserve its fair market value, and an extended warranty can help. Explore our extended warranty provider reviews and buying guide to determine which extended warranty will work best for you and your vehicle.
