Before a car purchase is initiated, and even before car buyers visit the dealership, it is recommended that adequate research be carried out. The information obtained from research on dealerships and the used car market points car buyers in the right direction and to reliable vehicles. One of the most critical aspects of research is finding the fair market value of vehicles. Some car buyers need help finding accurate and real-time insights on the fair market value of vehicles, but they can easily find them with the proper steps. Let’s learn how to determine the fair market value of vehicles.
How To Determine the Fair Market Value of Vehicles
The fair market value of a vehicle is the amount a vehicle can be sold for based on the vehicle’s current condition and used car market trends. This value is usually a fair representation of the vehicle’s worth and represents what car buyers and sellers are willing to settle for in the used car market. However, the fair market value of a vehicle is greatly affected by some factors, such as:
Through vehicle history report companies
Vehicle history report companies focus on the speedy provision of vehicle information and history to used car buyers. Among other services these companies render, some also offer market value checks. A market value check with a vehicle history report provider gives access to accurate insights on the real-time market value of vehicles based on their ages, conditions, mileage, and accident histories.
With a fair market value check, you can expect to be provided with all the information on a vehicle regarding its fair market value. Some vehicle history report providers with accurate insights on accurate market value include Detailed Vehicle History, Instant VIN Reports, PremiumVIN, and more.
Through online valuation tools
With automotive websites such as Edmunds and Kelley Blue Books, you can check the fair market value of any used vehicle. These tools are usually offered to the general public for free, allowing car buyers to determine the fair market value of vehicles quickly.
Kelley Blue Book and Edmunds are large companies with a wide range of data that can easily be accessed to make the right decisions during car purchases at dealerships or private sales.
The vehicle’s age
Generally, the older a vehicle gets, its fair market value is lower. This is due to the high depreciation rate of cars. A car loses up to 60% of its importance within the first year of purchase.
The number of miles on the vehicle
Mileage is one other factor that determines the fair market value of vehicles. Like a vehicle’s age, the mileage increases with time, reducing the vehicle’s fair market value.
The vehicle’s current condition
The vehicle’s condition plays a significant role in determining the vehicle’s market value. If you have a reliable car with a clean title and little or no accident records, you can expect it to have a higher market value than a vehicle in poor condition.
The vehicle’s make and model
Car brands and models vary in price generally for new and used cars, and there are some expensive used cars and affordable ones.
The used car market trends
The used car market trends and the car’s location also influence the fair market value of a vehicle. Some vehicles may cost less in some states and more in others.
Do you need help learning how to find the fair market value of vehicles? The following section thoroughly explains how to get the fair market value of vehicles for car buyers and highlights how dealerships can provide accurate market value insights for their customers.
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How to Calculate the Fair Market Value of a Vehicle?
Calculating the fair market value of a vehicle with a vehicle history report provider or an online valuation tool is easy. Now, let’s take a step back and explain how calculating the fair market value of a vehicle works.
Step 1: Identify a market value check tool with high accuracy
Every market value check tool of an automotive business or company provides information on a vehicle’s market value to customers through websites and applications with the aid of Application Programming Interfaces (APIs). The market value APIs collect car buyers’ vehicle information through websites and applications and provide real-time insights on the market value of several vehicles. An API acts like an intermediary; it collects information from a customer and provides the market value of that vehicle based on age and other factors.
You must be careful to select a market value check tool with an API database that offers high accuracy to customers.
Step 2: Provide necessary car information
Some of the information car buyers may be asked to provide before a market value check is carried out include:
- The car’s Vehicle Identification Number (VIN) or US license plate number.
- The vehicle’s year, make, and model.
Most often, vehicle owners and buyers only need to provide more information to vehicle history data APIs before they generate the fair market value of vehicles for customers. However, with an online appraisal tool such as the Edmunds appraisal tool, you may have to provide information on your vehicle’s condition, such as:
- The vehicle’s location and style.
- Exterior and interior colors.
- Vehicle’s condition and mileage.
- Accident and damage information, etcetera.
Step 3: Note down the fair market value provided
The results of market value check tools provided by automotive businesses include trade-in, private party, and retail dealer prices. These values come in handy if a vehicle is to be purchased from a dealership or a private seller or to be sold or used as a trade-in.
These are the simple steps to check the fair market value of any used vehicle quickly.
How can dealerships provide accurate market value prices for their customers?
Suppose you are a dealer and want to provide your customers with accurate insights on market value information. It would help if you considered integrating the Vehicle Databases’ market value API into your dealership’s website or application.
The market value API provided by Vehicle Databases is an invaluable tool for dealerships and automotive companies. It gives customers instant access to car prices through websites and applications, significantly increasing sales and business ratings.
Some of the benefits of the car price API provided by Vehicle Databases include the following:
- High accuracy of car prices for both new and used cars.
- Real-time and updated information.
- Improved sales.
- Higher customer satisfaction.
- Competitive advantage, and more.
These are just a few benefits of the car price API provided by Vehicle Databases to dealerships and automotive businesses.
An idea of a vehicle’s fair market value is crucial whether you are a car buyer or a seller. Considering the vehicle’s age, condition, mileage, and other significant factors, you can quickly check the fair market value of any used or new car before purchasing it from a dealership. With the estimate provided, you can negotiate better prices and get a better deal with a dealership, private seller, or trade-in. Dealerships and other automotive businesses can significantly boost their sales rates and save time on car sales with the fair market value API provided by Vehicle Databases, giving them an edge over their competitors.
Frequently Asked Questions
What is the fair market value of my vehicle?
The fair value of a vehicle can be determined with a market vehicle check tool provided by a vehicle history report company or an appraisal tool provided by automotive companies such as Edmunds, Kelley Blue Book, etcetera.
Be aware that the fair market value of your vehicle depends on the vehicle’s overall condition, age, mileage, brand, model, and market trends.
How do you calculate the fair market value of a car?
To calculate the fair market value of a car, simply:
- Identify a market value check tool with high accuracy.
- Provide required car information such as the VIN, year, make, model, location, style, exterior and interior colors, vehicle condition, mileage, accident information, etc.
- Note your vehicle’s trade-in, dealer retail, and private party prices.
Determining a vehicle’s fair market value is essential for buyers and sellers to make informed decisions. To achieve this, consider the vehicle’s make, model, age, mileage, overall condition, and additional features. Research the average selling price for similar vehicles in your region using online resources like Kelley Blue Book, Edmunds, or NADA Guides. These platforms factor in local market trends and provide a comprehensive evaluation. Additionally, consult recent sale prices of comparable vehicles in your area and seek advice from a trusted professional, such as a mechanic or auto appraiser, to ensure an accurate assessment.
I am an Automotive specialist. I graduated from Michigan with Bachelor in Automotive Engineering and Management. Also, I hold degrees in Electrical and Automation Engineering (BEng), Automatic and Industrial Electronic Engineering, and Automotive Technology. I have worked at General Motors Company for over five years as the Marketing Operations Production Coordinator. Now, I own my garage in Miami, Florida. I love cars and love to share everything about them with my readers. I am the founder of the Automotiveex blog, where I share everything about automotive, like car news, car mechanical issues, and anything else that comes up in my blog posts.