We walk you through the process of finding out what your car is worth when trading it in
Selling your car privately could get you more cash, but for some, there just isn’t time to try and find a buyer, arrange meet ups and so on. That’s why calculating the trade-in value of your car is far more convenient – there is an abundance of dealerships and cars that you can choose from and the dealerships job is to make your life as hassle-free as possible.
However, you also need to bear in mind that although the dealership may seem like your best friend when selling your car, dealerships also tend to pay you less for our pre-owned vehicle.
The following guide will give you an understanding on how the price of a second-hand car is calculated and how to find out how much your vehicle is really worth so that you don’t get taken advantage of when trading in or trading up!
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Our guide to estimating the trade-in value of your car
The factors impacting the price of your car
It is difficult to know the exact price that your car is worth as the value of pre-owned vehicles changes all the time. Here are some factors that determine the value of your car:
- The vehicle’s age
- The overall condition of the vehicle
- Mileage
- Costs of reconditioning the vehicle (i.e. fixing up any bumps and bruises, replacing parts etc.)
- Previous accidents and the quality of the repairs done
- Prevailing market forces and popularity of vehicles (which could differ from region to region)
- Factory or non-factory fitted extras of the vehicle
You will also need to take into account the fluctuating demand for pre-owned vehicles. For example, if the rand weakens and fuel prices increase, then a number of people will put the brakes on spending money on a car.
How trade-in values are calculated
A great guide to finding out the value of your car is the TransUnion Car Value Report – this is seen as the best form of information and a great resource for determining the value of used vehicles for trade-in and their retail value. Major dealerships send TransUnion information on their average trade in and retail prices.
It is also important to note that the retail prices of cars you see on the showroom floors or on car websites such as AutoTrader, will include a dealer markup, as well as any services that that dealership had to do or parts they needed to replace to make the car sale-ready.
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The trade price of a car, also known as the book value, is the industry guideline of what a car is worth, in other words. The “book value” of the car is the average value (amount in rands) that your car is worth when trading in or selling your car. It is an industry guideline that car dealerships use in order to determine a purchase price when buying or selling a car.
How to work out an accurate trade-in estimate for your car
Do some online research: See what you can find on websites selling cars such as Weelee.co.za or Cars.co.za to find other models like yours and see how much they will typically sell for.
Phone some dealerships: Although dealerships may not be able to give you an exact estimate of your car without seeing your car in person first, they can give you a ballpark figure. It’s best to phone a dealership that specialises in your make of car – i.e. Toyota.
Use your online sources: There are some great websites that help you to estimate the book value of your car.
Why is an accurate trade-in value so important?
Here’s the thing: it’s vital that you know the price of your car to make sure that you are getting the best bang for your buck when trading it in so that you don’t get ripped off.
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Last but not least
Make sure your set of wheels is insured. If you have just gone through the process of buying a second-hand car, then don’t put yourself at risk of any accidents such as fender benders or theft happening to your trusty form of transport.
With Oneplan Car and Household Insurance, we make car insurance hassle-free as we allow you to choose the cover you want at the price you can afford – it’s that simple.
Your Insurance Family,
Oneplan
