How Much Is Your Car Worth?

car title
Source: Standret/Shutterstock

You may be asking yourself “how much is my car worth?” but you might be having a hard time finding the right answer.

Moreover, other questions such as “is it better to own or lease?”, which is also important when you are making an important decision when you plan to buy a car. Due to a car’s high value, you should always make an informed decision before you make a big investment in a car or decide to sell the one you have.

How much is my car worth?

There are several sources online to find your car’s trade-in value, but different sources consider different factors. If you are deciding to buy a new or used car, trading in your current car may help you save money depending on your car’s value. Read the sections below to learn more about how to determine your car’s worth and how to make a better decision when buying or leasing a car.

Many tools that help you find your car value by VIN number are available online. One of the most popular tools, the National Automobile Dealers Associations (NADA), is an example of the type of tools online that help you determine the current value of your vehicle. This price is approximate of what people would normally pay for a used car similar to yours at a dealer.

Tools including like the Kelly Blue Book and other popular websites are also available. Some tools help you find your car value by VIN in addition to other important information. Other websites take more information about your car into account to determine the car trade-in value or fair market value. Some of the information that some websites use include:

  • VIN number.
  • Mileage.
  • Make and Model.
  • Color.
  • Additional special features of the vehicle.

Additional factors that affect your used car value include important aspects of your vehicle’s history. For instance, NADA and other car value calculator consider any accidents or car crashes you may have had in the past. Any accident will significantly lower the value of your vehicle and It may be harder for you to sell your car. Moreover, older cars tend to have lower market value. The importance of estimating how much your car is worth is that you have an idea of how much it costs when you want to sell it. Knowing the value of your car will help you ensure that you sell it or trade it in for a fair price.

Is it better to own or lease a car?

If you are trying to buy a vehicle, you may be asking yourself “is it better to own or lease a car?” and it can be hard for you to find the right answer. The decision of leasing a car vs. buying one can be hard to take, but with proper research, you can make the right decision for needs and budget. Both new and leased vehicles have pros and cons that you should consider and depend on your needs, you might lean towards one option rather than the other.

Used car value is typically lower, so leasing a car that is used may be a better option for you in terms of money. Leasing a car with bad credit is also possible, so you will have an opportunity of driving a car in case you do not have a bad credit score. Leasing companies have a less complex process to loan the car, and they can easily take the car back in case you miss any of the payments.

Moreover, when you think about leasing vs. buying a car, you should consider that monthly payments on a lease are typically lower. When leasing a car, you will also be able to drive a new car more often after the term of the lease expires. In addition, leased cars are typically used and therefore less costly to insure. You will have to pay less money for insurance on a leased car than on a new one. However, make sure that you keep an eye on the car’s mileage because you may have to pay extra fees when you drive over the mile limit of the lease.

On the other hand, buying a new or used car also has plenty of advantages. When you buy a new car, you will also feel privileged to own it. Moreover, you will not need to worry about any preexisting condition on the vehicle when you buy it new. When you purchase a car, you may also have access to special offers different from a lease. Some offers like rebates; no interest rates and others will save you a significant amount of money.

Car Trade-in Value

If you decide that it is better to own a car, you may benefit from trading your car in to help you pay for part of the cost. You should first determine the car trade-in value before you start the process to have a better idea of how much you will receive for your car. Keep in mind that the trade-in value is most likely less than your vehicle’s worth.

Tools like NADA or the Kelly Blue Book will help you determine the different prices for your vehicle. Fair market value is typically more than the trade-in value because when you trade your vehicle into a dealership, it must resell it and therefore expect a profit. Moreover, dealers also make some improvements before reselling the car, so you should keep in mind these factors and decide if trading in your vehicle is the best choice.

Buy New or Used Car

Once you decide to own a vehicle, you also must decide to buy a new or used car before you make a choice. Used car values tend to be less and therefore you will find it more affordable to buy a used vehicle. On the other hand, a new car has no preexisting issues so you can have comfort and guarantee that your new vehicle will not have any mechanical issues. Even though new cars are more expensive, you will enjoy the latest technological features that new vehicles have.