What a minefield!!! How do Car Value Calculators work???
Valuing a car in today’s market is a difficult task, there are so many factors to be considered and getting it wrong could cost you thousands.
If I wanted to value a car today I would have to make sure I check a number of different factors before I could even attempt to give a car valuation. Giving a car valuation is one thing, but providing a car valuation that you then may be asked to back up with a firm offer to buy the car is another matter.
There are many websites and providers that will give you a value for your car, but it is relatively easy to value a car if you don’t have to worry about buying the car and then second guess what the market is going to do when you yourself have to sell the car on for profit!
Car values change each month when the new industry guides are released. Normally these are at the end of each month. During the last week of the month you have to consider what may happen to the price of cars in the next guide that is due to be released as any car you buy in the last week would be subject to any reduction in value in the new guide.
The most common guides used in the trade are not Parkers or Whatcar but Glasses’ and CAP (Car Auction Prices). Both these guides follow the market closely and usually set the price for what cars are worth.
I use both these guides to asses a cars true worth within the trade, but they then I also know those cars that are “below book” (meaning they are not worth what the guides say) or those that are “into book” (meaning they are worth more than what the guides say).
Car Value Calculators normally work on just one of the guide prices, perhaps adjust it a bit for the mileage and then give you an approximate figure.
Free Car Valuations Car Value Calculator works in a similar way, but it is monitored to make sure it is as accurate as an automated car value calculator can be. Anyone saying I want to sell my car after receiving our initial value can then ask us to provide a fixed offer to buy their car. This is done manually based on the extra information we request and taking into consideration the guide prices and current market conditions.
Remember your car is only worth what someone else is willing to pay for it. Just because you may have seen one advertised at a higher price, it doesn’t mean that car is actually worth that. Many dealers have over aged, over priced stock at the moment that they simply can’t afford to sell for less as it would show as a loss on their books, they’d rather have it showing as a stock value!