by Richard Harley

Created on: January 22, 2009

It's an overused phrase but a car, like everything else in the world, is worth whatever someone is willing to pay for it. The value of your car is NOT what the local dealer is willing to give you in part exchange. He needs to make a profit, which cuts into your margin by more than most people know. The reason someone might part exchange a car for a lesser price than it's worth is purely the convenience of the matter. But is it really that convenient? Well yes and no. What's more convenient is an extra few hundred in your back pocket because you were willing to take the time to sell your car privately.

Preparing your care for sale is another matter and we'll not discuss that here. You can determine the value of your car in a few different ways:
Check local ads and classifieds for similar models of a similar age. This is often the best yardstick as location can increase (or decrease) the value of a car. For example, large diesel estate vehicles often sell in Norway for up to 25% of what they sell for in the UK. This is because the sparse, open terrain makes longer range vehicles more desirable. Likewise this type of vehicle would not fetch a good price in inner city Hong Kong! Your car will generally be worth more locally than on the internet or in a wider magazine.

Estimate the condition of your car. Is it in perfect condition or slightly rough round the edges? A used car with dented body panels will evidently fetch a poor price. But not just for this reason. A buyer will look at the car as a whole and poor bodywork will equate to poor mechanical maintenance, decreasing the value of your vehicle even further. Consider getting scratches or dents at least touched up before you sell. You should easily recover your outlay in the final sale. Buyers will look for something they won't have to spend money on after the initial outlay. Putting tax or an MOT on the car will often increase the value dramatically as the buyer won't have to worry about making sure the car is roadworthy for at least another year.

The internet is a wonderful resource for car sellers and buyers alike. Check Ebay adverts for completed listings and be model specific. This will give you a very accurate valuation but remember to check the location and the advert itself. It's no use comparing a 2001 Focus with 200k miles to a model two years newer with half the miles. Check classified sites like AutoTrader too. If your car has a fan-club, and most do these days, consider asking around there. These people will have model specific knowledge of the car and will be able to give you a recommended price for you to sell at. Check sites like WhatCar for free industry evaluations. These sites will give you a 'trade' price too. This is the very minimum you should expect to get for the car in a part exchange deal. Aim higher and start your price at the 'private good' range, if indeed your vehicle is in good condition.

As a seller, YOU should be dictating the price you want. This is the fatal mistake many make when part exchanging their old car. A price is dictated to them or in other words they are 'told' how much their car is worth and are forced to accept it if they wish to carry out the transaction with the dealer. If in doubt, always start high. You can always bring your price down if there's little interest, right?

In reality, determining the value of a car is actually very easy. Thousands of cars are sold and bought each day. Many of them will be exactly the same as yours.

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