Values Used To Evaluate Used Cars for Sale

Irrespective of where you buy a used car, the most important aspect is its cost. The value of your car depends on its age, condition, mileage and the region in which you buy it. Even so, it helps if you understand the values you will come across when considering used cars for sale. Below are tidbits on these values.

Retail price

This is what you will be expected to pay for a used car if you get it from a dealership. It is among the high prices of used cars for sale. This is because it also includes a profit margin that the dealer adds to the cash that he/she bought it for or the owner wants from the sale. Though the high cost sounds like a disadvantage, most dealers stock the best quality so you can expect the car to be worth its retail price.

Wholesale price

This is also called the trade-in value. It denotes how much a car seller will sell it for to a dealer who in turn sells it for profit. As expected, the wholesale price is lower than the retail price. Even so, you will not have the advantage of a dealer's input to guarantee the car is in the best possible shape.

Auction price

Some people opt to get the used cars for sale at an auction. In the wholesale business, dealers will sometimes sell their cars to each other after getting them from the original owners. If the cars go on sale at auctions, there is an auction price for them.

The auction price is often the highest of the three above because it involves multiple middlemen who all want a share of profits. As such, they add a markup that gives the car a new value each time it changes hands. With your newly acquired knowledge of car values, you can make an informed choice when negotiating prices.