I’m a Car Expert: Here’s How To Evaluate the True Value of a Used Car
Written by
Laura Bogart
Edited by
Amber Barkley
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For many consumers, purchasing a used car is the best way to hit the open road without crushing your budget under the wheels, Mad Max-style. While venturing to a reputable used car dealership or seeking out a used car through other reliable means might seem way more affordable than driving a shiny new model off the lot, if you haven’t investigated the car fully, you might spend more than you need to on a vehicle that lacks value.
Evaluating the true value of a used car can be tricky for people that might not fully understand the difference between a manual and automatic carburetor. Fortunately, GOBankingRates talked to Paul Knoll, marketing director for American Muscle, and Mark Beneke, co-owner of Westland Auto Sales, to help you figure out how to get the best value of your next used car.
Look for Essential Information
For Knoll, one of the first steps to take in evaluating the value of your used car is arguably the simplest: Look into the vehicle’s age, mileage, condition, maintenance records, accident history and overall market demand for that particular make and model. Knoll added that the features and options of the car can also impact its value.
Though you might be tempted to turn to resources like the Kelley Blue Book, Edmunds, Black Book and Nada, Beneke said that you’d be wiser to think of them as great starting points and not your final figures.
“We’ve found that on many vehicles, the valuations provided are wildly inaccurate. This has only worsened post-[COVID-19] pandemic,” he said.
He encouraged consumers to focus on the factors that will impact vehicle prices in their area, including market size, current availability, weather conditions, population, terrain types, taxes and regulations, as well as the seasons.
“Texas has an affinity toward bigger vehicles, like trucks or SUVs, which leads it to have a higher supply of them. This would normally lead to that type of vehicle having a lower price tag in that area in comparison to a state like California, which tends to favor eco-friendly options,” he explained.
Be Thorough in Your Inspections
There’s nothing like revving the engine — or at least, turning the key in the ignition and heading down the road while driving the speed limit — to know if a car feels steady. That’s why Knoll recommended that shoppers perform a test drive and an in-person inspection to really get under the hood, quite literally, when assessing that car’s worth.
He added that you should also request the vehicle’s maintenance records and run a vehicle history report through outlets like CARFAX or AutoCheck to disclose past accidents, ownership history and service records.
Knoll encouraged consumers to be on the lookout for several key indicators in these reports, starting with major accidents or frame damage on the vehicle history report. He also said that you should be vigilant for significant unrepaired damage or excessive wear and tear during the inspection.
“Incomplete or missing maintenance records, or evidence of deferred maintenance, can also be concerning,’ he said. “Additionally, if the car’s mileage seems unusually high for its age, that could suggest hard use and accelerated depreciation.”
Be Willing To Shop Around
According to Beneke, one of the wisest moves you can make when searching for a used car involves comparison shopping.
“The best way to look for true value is to look at your local area and compare. You should look at websites like Facebook marketplace, Offerup [and] Craigslist,” he said. “Set the search for your local market and look specifically for the type of vehicle you’re after — year, make, model, trim/features, mileage.”
He also encouraged consumers to look at private sellers and note all of the comparable models before doing the same at retail dealerships.
“You should start to see a very accurate picture of what most vehicles of that type are going for in the area for both types of transactions,” he said. “Keep in mind that private-party purchases tend to be less expensive, as there are no business regulations or costs involved.”
Engaging in comparison shopping will give you a sense of where you can find the type of vehicle you want. From here, you can narrow down your best options and look into the car’s history and features.
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