At some point, every car owner faces the same question: What is my car really worth? That question often coincides with the thought, “I want to sell my car, but I don’t want to leave money on the table or deal with the hassle of selling it privately.” 

Whether you’re planning to upgrade to a new model or simply want to know how much equity you have, understanding your vehicle’s value is a crucial step in your car ownership journey. We’re here to help drivers like you make confident, informed decisions, and that begins with knowing the real value of your car. Here’s a closer look at how your car’s worth is calculated, how to maximize its value before selling or trading it in, and what to do if you still owe money on your auto loan. 

Understanding Your Car’s Value

Did you know the value of your car isn’t set in stone? There are different types of car values, each representing a general estimate that varies depending on the venue or how the car is sold. Here are a few examples of those values: 

• Private Party Value is the estimated value of your vehicle if you sell it on your own to another individual. This value is usually higher than a trade-in value because the dealership has to account for its overhead costs and profit margin.
   
• Trade-In Value is what the dealership is likely to offer for your trade. This value is associated with the Dealer Retail Value, which is how the dealership will price your vehicle on the lot. This price takes into account any reconditioning costs and the dealership’s profit margin.
   
• True Market Value is the value of your vehicle in the current market. This estimate considers factors such as your location, supply, demand, and the vehicle’s condition. 

Key Factors That Influence Value 

Whether you’re looking at the Private Party Value, Trade-in Value, or True Market Value, the value of your car is influenced by several key factors. Some of these factors are entirely within your control, while others aren’t. Either way, it’s crucial to understand the key factors that influence your car’s value so that you know what to expect as you get ready to trade or sell. 

Year, Make, and Model 

Unless you collect antique cars, newer vehicles are often more valuable than older models. Likewise, some automotive brands have stellar reputations for reliability, meaning their models depreciate more slowly and are far easier to sell on the used lot. For example, Jeep models are renowned for their four-wheel drive capability, earning them top dollar as trade-ins because they’re easy to sell due to the steady demand for these iconic vehicles. 

Mileage and Condition

Think about your vehicle’s appeal to a potential buyer. A car with low mileage is more appealing because it usually indicates less wear and tear. While high-mileage models are often considered less attractive, there’s still a market among automakers that are known for building models that can log hundreds of thousands of miles without hesitation. These models appeal to budget-savvy shoppers who are willing to exchange a few more miles on the odometer to save money. 

Well-maintained cars are also more appealing. Potential buyers are looking for a vehicle they can envision themselves in, without needing any modifications or repairs. Your car should feel like a clean slate, with a clean interior and no mechanical issues or damage. 

Service and Accident History 

Service and accident histories also impact your car's value. It’s essential to keep detailed service records because this shows the car was routinely maintained, which can build trust and increase your vehicle’s resale value. These records include everything from tire rotations and oil changes to new batteries, brake replacements, and modification details, like a receipt for a suspension lift and the invoice for its professional installation. 

Aside from service history, accident history is another prominent factor. Vehicles with clean accident histories hold their value, while even a minor fender bender can impact your car’s resale or trade-in value. 

Market Demand

Market demand is a factor in your car’s value, but it’s not one you can control. Demand in the automotive market fluctuates, ranging from brand reputations to the current economic climate. For example, high gas prices heighten the demand for efficient sedans, crossovers, hybrids, and PHEVs. Alternatively, renowned automakers like Jeep and Ram are consistently in high demand because of their stellar reputations, with Jeep cornering the market on adventure-ready vehicles and Ram offering drivers luxury and capability across its truck lineup. 

How to Enhance Your Car’s Value 

Who isn’t looking to get top dollar for their vehicle? Whether you’re trading or selling privately, there are several ways to increase your vehicle’s appeal and maximize its value. What’s the first step to getting more for your car? 

Detail Your Car and Fix Minor Issues 

First impressions matter, so what impression does your car make to a potential buyer? Take the time to clean the carpets, vacuum the seats, and wipe down every surface before washing and waxing the exterior. As you clean, look for any damage or issues that are easy to fix, such as worn windshield wipers or stains in the upholstery. Fixing these minor issues and even having your car professionally detailed can make a better first impression when you’re ready to sell. 

Keep a Regular Maintenance Schedule 

One of your biggest responsibilities as a vehicle owner is to ensure your car has everything it needs to run optimally. While oil changes and tire rotations may not be convenient for your busy schedule, they’re crucial to your car’s performance and its long-term value. Because of this, we encourage every driver to stay up to date with automotive maintenance, keeping those service records to prove their vehicle is well-maintained. These records provide confidence and peace of mind for dealers and buyers. 

What If You Still Owe on Your Loan? 

One of the most common questions we get is, “How do I trade my vehicle if I still owe on my automotive loan?” Fortunately, our dealership is well-versed in every trade-in situation, making it easy to trade your car for top dollar and drive home in a new or pre-owned model. Here’s how we recommend approaching this scenario if your car is still financed.

What’s Your Payoff? What’s the Trade-In Value? 

There are two figures you need to determine if trading in your vehicle is a wise move for your current financial situation. First and foremost, contact your lender and ask for the ten-day payoff amount to determine what you owe on the loan. Then, compare this amount to your vehicle’s trade-in value, whether you’re getting an in-person offer at our dealership or gathering third-party estimates online. 

Determine whether your vehicle’s trade-in value is higher or lower than the payoff on your loan. Ideally, you want positive equity, which means your car’s trade-in value is more than what you owe on the loan, leaving you with money that you can put toward your next purchase. Alternatively, negative equity means that your vehicle is worth less than what is still owed on the loan. What are your options in this case? 

Roll Over Negative Equity

We specialize in negative equity situations because we want our customers to drive home in a vehicle that fits their needs, from how it performs and functions to how it aligns with their financial situation. In some cases, customers opt to roll the remaining balance or the negative equity of their previous vehicle into their next automotive loan. The process is straightforward, allowing you to trade your vehicle and drive home in a new model, with your monthly payments incorporating the old and new loans.

Pay the Difference or Refinance 

Rolling over negative equity can increase your monthly loan payments, which is why many customers opt to pay the difference or refinance. Paying the difference is straightforward, meaning you pay off the loan balance before refinancing your next vehicle. Alternatively, you may consider refinancing, especially if your current loan has a high interest rate. With a better, competitive interest rate, you could reduce your loan payoff and gain a better position to trade in the future. 

Know Your Worth, Get the Most from Your Car

Whether you’re trading in, selling privately, or curious about your car’s value, understanding the various factors that determine your car’s worth puts you in control. With the right preparation and a little help from our experts, you can unlock the full potential of your current vehicle and move forward with confidence.