How to Calculate the Diminished Value of a Vehicle
The moment you drive off the dealer lot your vehicle diminishes in value. This is because the retail value of a car is always higher than the actual value of a car when you are purchasing from a dealership. This is how dealers make their commissions. If you are purchasing from a private owner, you can expect to pay closer to the actual value of the vehicle. Owners determine the value of a car by considering three major facts: the make and model, the mileage, and the vehicle's condition.
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Instructions
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Direct your browser to a trusted website dedicated to used automobile values. NADA is a trusted resource as well as Kelley Blue Book. You can choose to use their online systems or order a hard copy of their current car value guide.
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Choose the used cars section. Whether you're using the online or physical guide, you need to locate the used cars section.
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Locate the vehicle. Use the make, model and year to narrow your search. The physical guide will have specific sections for you to follow. The online guide will ask you to enter this information or select from available options.
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Determine the vehicle's mileage. For an accurate value report, enter the mileage online or search the guide according to the exact number of miles found on the car's odometer.
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Notate the vehicle's features. Luxury items, such as powered seats, powered windows, leather interior or a sunroof, will increase the car's value. The online guide will ask you to check off these and numerous other features. The physical guide will show you how much money each feature will add to the car's value.
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Determine the car's condition. If the car is damaged or not running, this will decrease the car's value. Both versions of the guide will explain how to determine the car's condition and ask you to rate the condition. You can choose from excellent, good, fair and poor.
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Obtain the automobile's diminished value. The online guide and the physical guide provide you with the value of the car based on the information you entered or searched under.
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Tips & Warnings
Alternatively, to determine the value of a vehicle send the car to a nearby CarMax for a free estimate.
