The transportation experts at Platte City-Airport Chrysler Dodge Jeep Ram breakdown how we and other dealerships price used cars for sale
If you’re looking to buy used, or if you want to turn in your car for a newer one, you may be wondering exactly how dealers determine used car prices.
First, you’ll need to know that there are two different prices for used cars: the trade- in price of a car, which is the price you’ll receive from a dealership if you put the value of your used car towards a newer one; and the retail price, which is the price a consumer can expect to pay for a used car when buying from a dealership.
The retail price is always higher. Here are factors that affect both prices:
- 1. Mileage The higher the mileage, generally the lower the price. Specifically, about 10,000 miles a year on a car is considered normal. A four year-old car with 72,000 miles would be considered high-mileage for a car of that age and the price would reflect it. Mileage is also an important factor in pricing because at certain mileage marker points, cars require specific maintenance such as new tires, brake drums, or shocks. How close a car is to needing that maintenance (and if the dealer will have to perform it to sell the car) can affect the car’s used value for both the seller and buyer.
- 2. Trim Package Leather, engine power, heated seats, backup cameras, safety features…the more “bells and whistles,” the higher the resale price. One exception to this rule is aftermarket bells and whistles, such as subwoofer speakers, lift packages on Jeeps or extra marker lights on a Dodge Ram. Such modifications have less universal appeal which can lower the vehicle’s resale price.
- 3. Model Year and Make The newer the car, usually the higher the resale price. That said, certain makes and models of cars keep their resale value better than others because of their reported reliability or because of their demand in the marketplace. The year of manufacture is important for several reasons. Every few years, carmakers change a model’s design features. The newer redesigns usually command more money. Also, sometimes a car model’s manufacture year may have known reliability issues that can affect the value.
- 4. Condition How well the car has been taken care of in its life – from accident history, to dents, to paint job, to the condition of the interior – also affects the price of a car. Buying used from a dealership generally means you’ll be getting a car that’s been brought up to a better condition with much needed maintenance. This factor can be a wildcard with private sellers, unless they kept good maintenance records.
- 5. Location Surprisingly, location can greatly affect the price of a car. Some models of cars are in higher demand (and thus command higher prices) than the same model in a different part of the country. An all-wheel drive Dodge Durango, for instance, would be more valuable in areas with poor road or weather conditions than in a milder and more urban climate where such features aren’t necessary.
Whether you’re turning in a used auto for trade-in or you’re buying a used car, it’s always good to assess the car’s value by using either Kelley Blue Book or Edmunds – two popular thirty-party assessors for determining a used car’s value.
At Platte City-Airport Chrysler Dodge Jeep Ram, we strive for fair prices and high quality for every used car, truck or SUV on our lot, and we’re happy to discuss the factors that affect the prices of our vehicles. If you’re driving through Platte City or the surrounding areas of Leavenworth or North Kansas City, visit us today at 2605 Northwest Prairie View Road or call us at (888) 602-9743 to learn more about our used car inventory.
“Where can I find used cars near me?” Start by browsing our wide selection of pre-owned cars, trucks, SUVs and more at Platte City-Airport Chrysler.