Whether you are in the market for buying or selling a car, or you’re just curious about how much your vehicle is worth, it’s helpful to understand how to calculate car value. It may take a little research to find an accurate price, but there are multiple online resources that can do the math for you and come up with a reasonable estimate of your car’s worth. This guide breaks down the key factors that influence car value and offers simple steps to help you estimate yours.
What is the resale value of a car?
Anytime you need to sell a car or file an insurance claim on a totaled vehicle, it’s helpful to understand its resale value. This value represents how much you can trade or sell your car for after factoring in depreciation for things like age and mileage. The simplest way to get your resale value is to consult a website like Kelley Blue Book and input details about your car. However, you can also ask a dealership for a trade-in appraisal or look at for-sale-by-owner cars to get an idea of your vehicle’s market value.
How to calculate the value of your car
To calculate your car’s value, you’ll need to combine details about your vehicle with market research and trusted pricing tools. Here’s how to go about it step by step.
Gather information about your vehicle
Before attempting to calculate your car’s value, you will want to gather several facts about your vehicle. You should understand the car’s history and the factors that have contributed to its depreciation since its purchase. The key information generally required includes:
- Make, model and year: Verifying that each of these pieces of information is accurate is important. It is not uncommon to confuse your model with another, especially if your specific model is no longer sold.
- Mileage: When possible, obtain your mileage directly from your speedometer. This, along with the vehicle condition, are two of the most important factors in valuing your car.
- Condition: Cars in excellent interior, exterior and mechanical condition will typically be valued significantly higher than vehicles in poor condition.
- Features: Your car’s price will vary depending on whether it is a base model or includes all the extras. Upgrades such as all-wheel drive, a sunroof or anti-lock brakes are likely to have an impact on its resale value.
- Color: As trivial as this may seem, color can make a difference in value. Yellow, it turns out, is one of the best colors for resale value. Even orange and green can do the same, primarily with sports cars. Cars with such colors tend to benefit from scarcity, while white, black and blue cars are common and may have less demand.
Consult car valuation tools and resources
Car value pricing guides are now everywhere on the internet and are relatively easy to use. They typically prompt you to pinpoint the factors mentioned above, which can help you determine the right value of your car. Here are several of the most popular car value estimator sites:
- Kelley Blue Book: Kelley Blue Book (KBB), founded in 1926, is one of the most trusted sources for car valuation. KBB’s site directs you to enter information about your car and uses its own proprietary software to assess your car’s value. It does so by comparing your car to a host of car prices it receives daily from wholesalers, franchised dealers, auto manufacturers and others in the auto industry.
- Consumer Reports: Consumer Reports is a well-known and credible resource for all your needs when looking to purchase a car. Known for its reviews of new automobiles, the company also has a user-friendly site for valuing your car. The site includes a wealth of practical information regarding steps you can take to improve your car’s value, too.
- J.D. Power: J.D. Power has access to a wide range of resources for car valuation, using data from millions of automobile sales to help value cars. The site also provides a useful archive of historical valuations of lines of cars, plus ratings for vehicles, car insurance companies and more to help shoppers make informed decisions.
- Edmunds: Edmunds offers video reviews, new and used listings, free appraisals and calculators to help verify if a vehicle’s price is good or not. The site offers a list of top-rated cars each year and other features to help you navigate the new- and used-car market, as well.
- CarMax: This online car broker is known as a marketplace for buying and selling vehicles. You can even trade your car in to CarMax if you want, and anyone may use their free evaluation tool to get a car value estimate. All you’ll need is your license plate, ZIP code and some details about the condition of your vehicle.
- Car and Driver: This auto magazine has been around since 1955. In its digital form, it offers a car value calculation tool. The publication says it uses the same Black Book® data that dealers use when they appraise a vehicle in person.
Values can vary between sites because each one uses a slightly different method to collect data and calculate estimates. Comparing results from multiple sources can help you get the most accurate picture of your car’s worth.
Research the market
Using estimator sites can be helpful in determining your car’s value, but there may be other factors to consider. Here are a few of the conditions that are likely to play a role in determining resale value:
- Your location: Where you live impacts the value of your car, since some cars are more popular in certain regions. For instance, Subarus are highly coveted in mountainous areas.
- Time of year: There are seasonal variations in car pricing that could impact the value. Convertibles, for example, may be more popular — and thus sell for more — in warmer months.
- Unique modifications: If you’ve had work done on your car, such as a custom paint job, that could play a role in its value.
To help take these characteristics into account, it may be useful to review prices for similar vehicles in local newspapers or market publications. Online sites like TrueCar, CarMax, Cars.com and Autotrader.com can also help. Find a similar vehicle on these sites, including the same make, model and general mileage, to get an idea of your car’s worth.
Terms and phrases to know when calculating resale value for a car
When buying or selling a car, it is beneficial to know as much as you can about common industry-specific terms and phrases. Arming yourself with knowledge of your vehicle, as well as the industry as a whole, can help put you on equal footing. Here are some terms and definitions that may be worth knowing.
| Terms and phrases related to car value | Meaning |
|---|---|
| Depreciation | Depreciation is the difference between what you paid for your car and what it’s worth when you sell it. Most cars start losing value the moment they leave the dealership, and that depreciation reflects the wear, tear and age of the vehicle over time. |
| Retail value | The retail value is simply the amount a dealer will charge for a used or new car. It’s the price you pay when you purchase a vehicle from a dealership. |
| Trade-in value | This is the amount a dealer offers when you trade in your car for a newer model. It’s usually less than what the dealer will later charge for the same vehicle after preparing it for resale. |
| Private-party value | If you buy a car from a private seller instead of a dealership, you’ll pay the private-party value. This price is usually lower than a dealer’s because private sellers typically don’t spend money on cleaning, repairs or other prep work before selling the car. |
Factors affecting a vehicle’s value
The big picture details about your vehicle affect its value, but so do minor details. For instance, the age of your car is a big factor, but it also matters if the seats are in good condition or have major signs of wear and tear.
It’s worth noting, however, that not all valuation factors are weighted the same. Things like a tear in your passenger seat may not bring down the value of your vehicle as much as four bald tires. Anyone calculating your car’s value fairly should take into account the proportionate value of each factor. Having a solid understanding of these key details can help you spot a lowball offer.
How make and model impact car value
Some makes and models hold better value than others. Brands like Porsche and Toyota are consistently ranked highly when it comes to maintaining value over five years. In 2024, Kelley Blue Book named Toyota as the best brand for resale value overall. Lexus was named as the top luxury brand for resale value. Cars that don’t typically have a good reputation for resale value include the Tesla Model S and Infiniti QX80.
How mileage impacts car value
Cars that reach higher mileage milestones may start to lose value. As Edmunds points out, when a car reaches about 60,000 miles, certain parts start to wear. This may include brakes and timing belts. This naturally affects the value of the car if these parts have not been replaced.
After 100,000 miles, most models experience significant depreciation as pricier routine maintenance needs arise. If you have a vehicle nearing one of these milestones, it may be a good time to sell so you can take advantage of a higher resale price or trade-in value.
How age and depreciation impact car value
The average car depreciates by more than 50 percent within the first five years. Most of that lost value occurs by the two-year mark, at which point your car is worth about 30 percent less than when you drove it off the lot. After the five-year mark, Kelley Blue Book says you can expect your car to lose about 8 to 12 percent of its value per year.
How condition impacts car value
Your car’s overall condition plays a big role in its value. Visible damage like dents, rust or other bodywork issues can significantly reduce what it’s worth. Interior flaws — such as stained upholstery, ripped seats, broken knobs or a damaged dashboard — can also lower its value. These issues not only cost time and money to fix, but they may also suggest poor maintenance, which can be a red flag to buyers or dealers.
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