How to Set a Competitive Price to Sell a Car

Thoroughly research your car's value and market trends when establishing a competitive price for your car. You will also need to evaluate your own objectives. Decide whether you are determined to sell at the highest price or want to sell as quickly as possible. These are all important considerations when deciding on a competitive price for your car.

Difficulty: Easy

Instructions

Things You'll Need:

• Kelley Blue Book

1. Scan your local used car classifieds for the asking price of similar cars in your area in order to price your vehicle competitively.

2. Determine the market value for your car by using the Kelley Blue Book. This popular reference manual will allow you to enter mileage, color, options, etc. in order to get the most accurate market value.

3. Adjust your price based on improvements made to the vehicle. Upgrades and alterations can add value. This includes new tires, a rebuilt engine, a paint job or mechanical improvements.

4. Consider factors that can decrease a car's value before setting your final price. Harsh climates decrease a car's longevity. Young drivers tend to be hard on cars, also decreasing the car's lifespan.

5. Establish your bottom-line price. This will be the least amount you are willing to accept for your car.

6. Set the cost a little higher than your bottom-line price. This will give you some room to negotiate. You may actually receive the higher price, but if you have to negotiate down, you will still end up with an acceptable amount.

Tips & Warnings

• Remember that buyers will also research online buying guides when deciding whether a price is fair. Set your car at or under the market value to be competitive.
• Cars with poor gas mileage are now harder to sell as buyers become concerned about their economic and environmental impact. You may need to set the price a little lower for these vehicles.
• The Kelley Blue Book can also be found online if you prefer to research your car's market value via the Internet.
• Avoid the psychological games that car salesmen play. An example is pricing the car just below a round number, such as $21,950. Set your price at a simple figure that is fair and well planned. A positive transaction is more important than playing games with the consumer.
• Never start negotiations at the price you think the car is worth. This will leave you with no room for negotiating and you will end up having to accept less than the car's worth.

Resources

• Kelley Blue Book for market value of your car