7 tips on setting the right asking price for your vehicle
We’re often so attached to our old car that we overestimate its dollar value. But the used car market doesn’t care much about our feelings, nor for the vehicle’s backstory, unless it’s a vintage car.
Here are 7 tips to help you set the right price for your used vehicle:
1. Age and mileage
Unlike wine, cars don’t gain value as they age. On the contrary. It’s common knowledge that within its first year a vehicle’s worth drops by 30%. And while in subsequent years the decline is less extreme, there are still a few things you should try to avoid. For example, if your vehicle has been overused and driven tens of thousands of kilometres every year, it will lose its value faster. Remember that most vehicles are driven an average of 20,000 kilometres per year or even less.
2. Market prices
You can thank Kijiji for this one! Unless you’re selling a rare gem, Kijiji’s search tools will enable you to find one or more models similar to yours. You’ll therefore get a very good idea of the commercial value of your vehicle. But remember, not everyone has read our sage advice before pricing their car.
3. Make and model
You don’t need a crystal ball to understand that the vehicle model has the biggest impact on its base price. But you also have to consider the model version as well as the on-board equipment. If you opted for the fully loaded model with a high-end sound system and electric sunroof, you can add a few hundred dollars to your asking price. However, if you bought the pared down version with manual crank windows and no air conditioning, you may have to lower your price. An automatic transition is also likely to give you a financial edge—unless you’re selling a sports car!
4. Additional features
Did you add a roof rack, bike rack, trailer hitch or even decorative eyelashes to the front of your car? Don’t forget these add-ons when setting your price (the eyelashes may be less of a draw). You might also want to think about adding the cost of your winter tires, if possible.
5. Rust, wear and tear
Your car has survived the worst of winter, but has its paint job? Are your floor mats showing the effects of years of salt stains and kids’ snacks? Have your pup’s claws left telltale marks on the back seat? Unfortunately, your price will have to reflect this.
Nothing too mysterious here. If your car has been in three accidents or had two open-engine surgeries, you’ll have to bring your price down.
7. Needed repairs
You know your vehicle well, and you realize it needs a little TLC. Keep in mind that its future owner will have to spend a few dollars to restore it to tip-top shape, so it’s your job to adjust the price accordingly.
By following these tips, you should be able to set the right price for your beloved car and attract a host of potential buyers!