Selling Your Car: How to Pick a Price

If you want to sell your used car, the most important decision you need to make is the listing price. If the price is too high, you could deter potential buyers. But pricing your car too low means you could miss out on the opportunity to put more cash in the bank.

We’ve pulled together some tips for pricing your car well. Of course, you should always ask for advice and do research. But to get you started, here’s how to gauge how much your car is worth and how to settle on an asking price.  

Step 1: Determine Your Car’s Value

The first step to pricing your used car is determining how much it’s worth. Technically, you can list your car at any price! But it’s unlikely that a potential buyer will pay more than it’s worth.

Since your car’s resale value has almost certainly dropped over time, it’s important to determine how much it is worth at the time of sale. Kelley Blue Book (KBB) is a free resource that uses your car’s features and other factors — like your location as well as its age, mileage and condition — to calculate its estimated value.

Be honest about the condition of your car and its features when using KBB to get an accurate value — that will give you a good starting place to work from.

Step 2: Research the Market

Now that you have an idea of how much your car is worth, explore the market to determine whether you should price the car for more or less than its estimated value. For instance, if your car is valued at $7,000, but similar cars in the same condition are selling for $9,000, you may want to list the car for more than the value that you determined in step 1. Likewise, if similar cars are selling for much less than your car’s estimated value, you may need to consider offering a lower price so that buyers will consider it.

How can you accurately research the market? The Internet is probably your best resource. Search the listings in your area on websites and apps like Cars.com, Craigslist, OfferUp, Facebook Marketplace and Autotrader to get a feel for how much cars like yours are selling for. Then, adjust your listing price as needed so you’re getting the best return based on market value.

Step 3: Account for Negotiation

Negotiating prices for most items is rare in our world, but cars are different! It’s very rare that a seller will offer the price you’re asking for, even if you price your vehicle at what it’s worth. After all, they want to get a good deal on a used car as much as you’d like to get a great offer.

For this reason, it’s a good idea to include room for negotiation when pricing your used car. For example, if you know you won’t take less than $5,000 for your car, list it for more. When a potential buyer offers a price lower than your asking price, you’ll be more willing to negotiate and, thus more likely to close the sale. It’s just a smart practice.

Step 4: Consider Your Timeline

Think about how much time you have. Do you need to sell your car quickly to gain access to some cash? If so, you may want to consider motivating potential buyers by listing your car at a lower price point, even if it’s less than what your vehicle is really worth.

If your car is priced higher than similar cars on the market, buyers looking for a good deal may consider similar, lower-priced options first, which means you could be waiting longer for the right buyer to come along.

On the other hand, if you have time to spare, you might be able to wait it out until the perfect buyer appears. It’s all based on your needs as well as the needs of buyers.

Stay Covered

Protect your car’s value with the right auto insurance coverage. Contact Farm Bureau today to find out how you can get the right auto insurance for your needs.