When you want to buy a used car, use the Internet as your guide. You can find a lot of useful information online, and it's only a few clicks away. You can find out how much a used car of any make or model might be worth if you wanted to trade it in, sell it yourself, or buy it from a private owner or car lot.
Go online to find out how much the used car you want to buy is really worth before you get a loan for it. Not only do you not want to pay too much for the car, but you also don't want to get a bigger car loan than you need.
"Trade-in value" is what a consumer can expect to get from a dealer for a vehicle they want to trade in, and "private party value" is what a buyer can expect to pay for a used car from a private party. But when it comes to "suggested retail value," KBB changes gears and says that it is "representative of dealers' asking prices and is the starting point for a consumer and a dealer to negotiate." - advertisement -
Now, watch out. You have to look at more than one source because there are a lot of websites on the internet, and each one has its own opinion about used cars and car loans. Depending on the website, the value of some cars that look the same and are in the same condition can vary by more than a thousand dollars.
Most free websites that say they can tell you how much a used car is worth or help you get a car loan usually have a close relationship with car dealers and car loan companies that support their website through advertising or other means. Because they are close to their supporters, the information may not be as reliable.
Kelley Blue Book and Edmunds are two popular websites that give information about how much a used car is worth. These are the most reliable places I've found to find out how much a used car is worth. After you figure out how much you need to borrow for your dream car, you can go to allaboutcarloans.com to learn more about car loans.
Let's start by figuring out how much the car you want to buy is worth. A used car's value depends on a lot of things, like where it's from, how much people want it, and what's going on in the new car market. Run the car you want to buy through the calculator on Edmunds and see what the result is. Then go to Kelley Blue Book and look up the same car. You will probably see two different prices for the car you looked up.
Why? Each website has a different way to figure out how much an automobile is worth. Different kinds of information about used cars are used to figure out the prices on the websites. Edmunds.com seems to use some guesswork to figure out how much a used car is really worth, while kbb.com or Kelley Blue Book gives you a suggested retail price that car dealers can use as a guide.
Newer cars are easier for these sites to compare, and when you compare prices, you'll find less difference. The more old the car is, the more likely it is that the estimates will be different. None of these numbers should be taken as a 100% accurate estimate, but using both will help you figure out a range.
So what do I do? First, remember that no two used cars or auto loans are the same.
Also, it can be helpful to use the higher estimated value when you apply for an auto loan and the lower estimated value when you negotiate the price of your car. When you go to allaboutcarloans.com, look for topics that will help you figure out where to apply for your auto loan, and when you apply, use the higher estimated value.
