How to Evaluate Used Car Prices

Part of the task of purchasing a used car is to understand what constitutes good used car prices.  There are several factors to consider when evaluating prices, including the current market price for the vehicle and the more subjective assessment of worth to you.  The idea is to secure reliable transportation at a price that you consider fair, but that at the same time might just allow the car to be sold on for a minimal loss or even a profit in the future.

Checking the market value is one of the first things to do when evaluating used car prices.  The idea is to focus attention on cars that are being sold somewhat in the range of that market value.  Use this market value figure in line with the general condition of the vehicle, including any extras that are included, to consider if you are getting more or less than you should for your money. If the condition and equipment of the vehicle compare favourably with the market value, and the asking price is within your budget, then you may have found the ideal used car.

Keep in mind however that used car prices are somewhat subjective; depending on individual circumstances and preferences, a reasonable price for one buyer might not be considered reasonable by another.  While the resale value is important, place more emphasis on what benefits the cars offer, and your personal likes and dislikes.  Assuming you find the price is reasonable, the car is in good condition, and you can afford it without hardship, then start your negotiations.

Author - Michael Barclay

published: 01/03/2011