Whether you are buying or selling a car, it is good to know what the current market value for the car is so that you can be sure that you are getting a fair deal. A number of factors go into the cash value, and you should take all of these into account in determining how much it is worth.
New vs. Used
The value of a new car is much easier to calculate than the value of a used car. If you go to a manufacturer's website, you can "build" the car in question and add the applicable features. The site will give you an MSRP (manufacturer's suggested retail price), and with taxes and dealership fees, you should expect the market price to be slightly higher than this. Anything below MSRP is a good deal. The calculation of a used vehicle's value, however, is less exact. The industry standard measurement for used car value is Kelley Blue Book.
Make and Model
The make and model of a vehicle are the first two factors of determining its value. Even if two vehicles are similar (both midsize sedans, for instance), they may have significantly different values because of the make and model. This can come due to an actual or perceived difference in durability or quality of manufacture, but it can also come due to the availability of parts (as it may be more difficult to find parts for foreign makes and models than for domestic ones) or due to other market factors such as current fuel prices. When fuel prices are high, cars that use a lot of fuel lose value in the market.
Condition
The general condition of a car makes up a big part of its value. If engine or transmission problems are audible, this may detract from the cash value. Even if the vehicle runs well, though, cosmetic problems such as chipping paint, dents, scratches, cracked windshields, dirty rugs and inoperative electronics can also decrease its cash value. Take all such issues into consideration.
Odometer and Model Year
Even if the previous owner of a car has taken good care of it by making all necessary repairs, getting it regularly serviced and keeping it clean and undamaged, the car will still lose value as it ages and adds mileage to its odometer. The only exception to this would be a car that has become a collector's item due to its rarity and special appeal.
Previous Owners
A car loses value when it has had multiple previous owners. This is because the fact that it has been bought and sold multiple times suggests that there may be something wrong with it that would cause an owner to want to get rid of it. It also increases the likelihood that it may have passed through the hands of someone who did not service it as he should have by doing things such as changing the oil and transmission fluid.
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