How Much is My Car Worth

 

How Much is My Car Worth?

Picture
A car is worth as much as you can get someone to pay for it.

How much is that? 

Used cars can vary in price depending on when you sell a car, how you sell it, and who you sell it to.

Which car price guide has the right price for my car?

The price that you will be able to sell your vehicle for is mostly determined by what price guide the buyer may be using. Price guides are targeted at specific markets. There are four guides that dominate the market:
  • Kelly Blue Book: This is the best known guide for consumers, mostly because they were the first to offer their guide online. They primarily list used car values, with both retail and private sale prices.
  • Edmunds: They mainly target new car buyers, focusing on prices for new cars and trade-in values.
  • NADA: Published by National Automotive Dealers Association, this is commonly used by new dealers and banks. They also publish a classic car guide, as well as RV, boat, and motorcycle guides. Their books are blue and gold, which sometimes gets them confused with the Kelly Blue Book.
  • Black Book: This book is mostly used by used car dealers. Unlike the other guides, this one is quite pricey because it is published several times a year using data gathered for regional auction prices. 
Why are prices different between private and retail sales?

Car lots are staffed with professionals that have to build their reputation to stay in business. Hopefully this means that the cars they are offering have had any problems fixed.

Private owners often don't have the expertise or don't want to put forth the effort to make sure the car they're selling is in good running order. Also, since this is the only vehicle they're selling, they can get away with selling a bad car more easily than a lot. Privately sold cars trade for lower prices because there is more risk involved.

What about the value of antique cars?

Pricing of classic cars is far more difficult because some models may not come up for sale often and their quality can be all over the map. These cars can be separated into four broad categories, with each one attracting a different market.
  • Survivor: This is a car that is basically as it left the factory. There may be some wear and tear, but it shows what a "real" car is like. While some high performance cars are bought new specifically for resale later, others are so rare that it's hard to predict their value before a sale. These types of vehicles mostly go to museums and serious collectors, making them an ideal candidate for antique car auctions and national sales like eBay.
  • Restored: Major work has been done to these cars, but they've been kept in a form close to how they would have been equipped when they came off the line. In most cases, the closer the vehicle is kept to its original form, the higher its value is. A "numbers matching" engine has the same VIN stamped on it as the firewall, which means it's the one the car came with from the factory. 
Generally, the nicer a vehicle looks, the higher its value will be. This holds true even if the quality is better than it would have been from the factory, and there has been much debate whether it's better for a vehicle to have original-style paint or shinier, better wearing clearcoat paint. Classic car guides like NADA's will give you a general idea of a price, but the actual sale price will deviate more than a newer car due to differences in condition.
  • Resto-mod: This is a car that has been updated with modern components to make it a daily driver. This can be as simple as switching to a different engine, or can be a ground-up build with a modern car covered in a vintage body. Even the best resto-mod will only sell for the equivalent cost of a new vehicle with similar equipment.
  • Hot rods: These vehicle are affected more by fads than any other car because they're all about style. Reproduction parts have become so popular you can build a '32 Ford Roadster hot rod entirely from things found in a catalog, so being able to show what parts of the car are original can improve its value. 
There is another subset of cars that strives to use period-correct hot rod parts. In the case of the '32 Ford, this type of car would be powered by a flathead Ford with Offenhauser heads rather than the ubiquitous Chevy small block. These cars always have a high value because they can be very difficult to create. Fortunately, there is no such thing as a "stock" hot rod, so parts choices are much broader than on a restored car. Sometimes hot rods cross into resto-mod territory, with the addition of modern conveniences like air conditioning making a car more desirable to buyers wanting to go to cruise nights.

How much are these cars worth? 

Nostalgia plays a major role in a car's value. Today muscle cars are trading for large amounts of money because the people who are looking for antiques remember these vehicles from their childhood. Meanwhile, pre-WWII car values have plummeted, as few drivers are old enough to remember them while newer drives see them as impractical. 

Rare doesn't necessarily mean desirable. While a few missing trim pieces on a Mustang can be ordered from any number of catalogs, they may be all but impossible to get for a similar vintage AMX. Completeness plays a bigger part in a car's price as you 

Drivability has a major impact on sales. Unless you're dealing in something super-rare, most people want something they can drive in club meets or take to shows. Minor improvements like an air conditioner converted to R-134 or a modernized ignition system can make your car much more appealing. 

How can I improve the value of my car?
  • Cleanliness: No matter what you're selling, a professional detail will make your car look far newer and better cared for.
  • Documentation: This is particularly true of special models that can be recreated with spare parts, like Hemi Chryslers or the Integra Type R. There are services available for getting a reproduction window sticker for classic cars, allowing prospective buyers to compare the car's current state with its equipment from the factory. Any receipts or manuals you have for other parts show the car has been taken care of.
  • Professional upgrades: Equipment added to a car by well known shops like Saleen or Steeda add a great deal to the value of a car.Buyers know that these improvements have been tested and are backed by a reputable company. Again, documentation is crucial. Most of these cars come with a separate window sticker detailing these modifications. Some of these cars will also come with the signature by the builder or licensing partner, often in some obscure place like the inside of the trunk lid.
  • Fads: Car values can be affected by things that move too fast to be charted by price guides. For example, during gas price hikes a couple years ago fuel efficient vehicles were in high demand. Geo Metros, which used to trade for $500-$1,000 shot up to $3,000 almost overnight. Now that gas is inexpensive again, they've returned to their previous sale value.
There are also some things that people think add value to a vehicle, but don't.
  • Options: Rare and desirable options can add value, but only if it's something that can't be removed from the car. For example, M Edition wheels are highly sought after by Miata enthusiasts because they're the lightest stock wheels available. However, since they're easy to switch between vehicles, they don't increase the value of the car. On the other hand, Mazda has released British Racing Green Miatas in very small numbers, increasing the value of these vehicles over Miatas in other colors. Some "special editions" are either so common or little known as to have no effect on price while something familiar like the Indianapolis Pace Car Edition often trade for at least 20% more than regular models.
  • Amateur upgrades: No matter how well your additions may work, buyers will see them as possible problems. This includes everything from boost controllers to lift kits. Often the best way to get your money out of these parts is to sell them separately from the car. However, you may be able to recover some of this if your car has a proven race history: time slips and trophies show your modifications work, and buyers may be encouraged to purchase your car if it can meet race series requirements.
For another perspective on the value of your car, take a look at: How Much is My Car Worth? We also recommend this site by the same name: How much is my car worth?