If you’re shopping for a used car or looking to trade yours in, it’s a good idea to know how the value is determined. You don’t want to pay too much for a used car or not get enough for your trade-in.
Used car dealers typically determine two different price points for used vehicles: the wholesale price and the retail price. The wholesale price is the trade-in value of your car, and the retail price is what the sticker price would be at a dealership. The wholesale price will always be lower than the retail price because the dealer wants to be able to sell it and make a profit.
There are three major factors that go in to deciding both the wholesale and retail prices of a car:
- Make, Model, and Year – The manufacturer of your car can make a fairly substantial difference in the value. Some makes and models hold their value longer than others because of their reputation for reliability. Another factor is age. Generally, the newer your car is, the greater the value.
- Mileage – If your car has either very high or very low mileage for its age, that can bring the value up or down, too. The average number of miles put on a car per year is 10,000, so if you were trading in a 5 year old car with 80,000, it’d be considered a high mileage vehicle and not worth as much.
- Condition – This almost goes without saying, but the condition of the trade-in or used car is going to make a big difference in the value, as well. If the regular maintenance has been kept up in addition to the appearance, that’s going to make it worth more money at the end of the day.
Whether you’re looking to trade in your car or purchase a used vehicle, Bryant Motors will always give you a fair price. Check out our online used vehicle inventory or stop by our Sedalia dealership today.