Setting the correct price for a used car is almost an art: a combination of research and intuition. Set the right price and you will quickly get the full value of your vehicle. Set it up the wrong way and you’ll wait weeks for a call or email from a buyer.
Your goal is to list your car at a competitive price, but one that is at the higher end of the price range. This strategy gives you room to trade and still end up with a fair amount of change. So decide where you want to close the deal and work backwards from there.
Let’s say you want to sell your car for $ 5,000. It should list it at around $ 5,750. With more expensive Cash for cars, you have to leave more room, so to get $ 15,000, you have to list the car at $ 16,500.
There are many tools and resources for finding the sweet spot for pricing your used car. Here is a step-by-step guide for this important process:
- Consider the market. Is your car in demand? Can you ask for a higher dollar? Is this the right time to sell it? Here are some general rules of thumb to help you answer these questions.
SUVs are in high demand right now, so they will be priced higher than sedans.
Family sedans will always be requested by people who need basic and inexpensive transportation.
Getting a good price for a convertible or sports car depends on what season you sell it in. The sunny, summery weather attracts shoppers. If you sell in the fall and winter, be prepared for the process to take longer.
Trucks and vans, which people often use for work, sell out quickly and are competitively priced. Don’t underestimate its value.
Collectible cars take longer to sell and their price is complicated. However, these cars can offer good sales prices, if you find the right buyer.
Be aware of any other market conditions that may have an impact on your car. For example, if your car gets good fuel economy and gas prices are high, you can ask for more than when gas is cheap. Similarly, selling a large SUV for a high price will be difficult if gas prices are through the roof.
- Know the value of your vehicle. Use the Edmunds appraisal tool to determine the private value of your car. Edmunds pricing is adjusted based on mileage, color, options, condition, and even country region. Please note that the Edmunds private party value is not a sale price. This is where you want to end after the negotiations. And don’t forget to take a look at other price guides to compare.
- Survey your competition. Check the classified ads on the websites where you plan to list your vehicle. These ads represent your competition and help you know where to price. But keep in mind that these are sale prices, not sale prices, and may be just an illusion of the seller. Compare the condition, mileage, geographic location, and sale price of cars to guide you in setting the right price.
- Price your vehicle competitively. As mentioned above, be sure to leave room for maneuver for negotiations. Ask for a little more money than you expect. If you get the asking price, that’s great. But if you have to go down, it won’t be a terrible loss.
Also consider the psychological aspects of car pricing by staying just below benchmark numbers, such as $ 10,000 ($ 9,900 price) or $ 20,000 ($ 19,900 price). Car dealers take this philosophy to the extreme by listing everything in their lots with a price ending in “999” ($ 12,999, for example; apparently buyers shouldn’t realize that the car is basically $ 13,000). Still, this tactic demonstrates the psychology of pricing. A product that doesn’t sell well at $ 20 could jump off the shelf to $ 19.95.
But as a private party salesman, you don’t want to look like a car dealer. So you may want to take a simplified approach and set your price to a round figure, like $ 12,750 or $ 12,500.
- Touch your intuition. Once you’ve considered all the hard data, it’s time to check your intuition. Perhaps you have a hunch that your car is desirable or that the time is right to ask for a certain price. When doing this knee-jerk review, remember that it is always a good idea to err on the higher sale price. If necessary, you can reduce the price until you get the interest of car buyers. On the other hand, if you are wrong..