How Much Is The Used Car Really Worth?

Whether you are buying a car from a dealer or an individual, it is important to know the current monetary value of the car. This depends on a variety of factors including the age of the car, mileage, condition, equipment, accessories, and even where it is sold. There are two prices for each used car: retail and wholesale.

Retail Price: This is the higher of the two prices and how much you would pay for the car if you bought the car from a dealer. If you buy it from a private seller, you should usually expect a slightly lower price. The retail price is also significantly higher than the price you get for your trade as it includes the profit margin for the trader.  To get the best price for your used car you can try a second hand car value calculator.

Image Source: Google

Wholesale Price/Exchange Rate: This is basically the value of the car that the dealer will likely sell it to someone else for a profit. Understandably, the exchange price is much lower than the selling price and you may not be able to buy a used car at that price.

But those are the numbers you need to know when trying to decide whether to trade in your current vehicle or sell it yourself.

At the end of the wholesale deal, the car can actually have several prices. One is what dealers offer customers in exchange. Then there are dealer-to-dealer prices when one dealer sells the car to another. 

If the car goes to a wholesale auction, which many do, then there is an auction price. Dealers and brokers can bid on cars for resale. At each step, the intermediary creates a markup and the car gets a new "value".