How To Accurately Price Used Cars

May 27, 2021

When pricing private party vehicles, you need a perfect blend of research and intuition to set the ideal price. To ease the hassle, we've highlighted three expert tips to help you set a competitive price idyllic for those planning to buy private party vehicles.

1. Determine the Price of Private Party Vehicles at the Auction.

Consider what the vehicle can fetch at an auction and try to come in slightly below that number. But also be sure to factor in additional costs such as auction fees, etc. You can also use local listings to conduct quick research regarding private party vehicle prices while considering model, make, mileage, and key features. Kelley Blue Book, CarGurus, NADA Guides, and ClearBoOKBy TrueCar are some platforms to get insights into private party vehicle prices. Besides, it is an excellent way to understand the price range of various vehicles, either new or used.

2. Know the Market Demand

Without a doubt, private party vehicles have an increasing demand soaring across different dealerships across the U.S. Seasonal factors also play a role in determining demand based on specific seasons and may compromise pricing. These, among other factors such as gas prices, may affect demand which is essential when pricing private party vehicles. Understanding the current market enables you to determine an optimal price and sell the vehicle at a good profit. When demand is low, prices often decline, in return, affecting your pricing — more specifically when the resale price is low. Generally, potential private party vehicle buyers may delay or choose to buy other vehicles when prices are high. Therefore, keeping an eye on market demand lets you determine an ideal price for private party vehicles.

3. Know How Quickly The Vehicle Will Sell

Keeping the car inventory well-stocked is important for any car dealership, but you need to make sales every day to generate revenue. When pricing private party vehicles, setting a reasonable price that captivates customers tends to promote sales. This means considering a price that makes you sell the car within the shortest time possible. However, how quickly you need to sell the vehicle can impact your pricing. Suppose you plan to sell the vehicle within a few days, you need to set a price that entices potential buyers. But if you plan to sell after several weeks or months, evaluate market trends to predict the appropriate price of how much that vehicle will cost at the time. It is imperative to engage in thoughtful pricing and stand out from the competition besides increasing sales of private party vehicles in your inventory.

Pricing Private Party Vehicles

Stocking your used car inventory is crucial to attract more buyers and grow your business. Yet again, you need to sell more often, and this begins with pricing vehicles reasonably. As to promote and motivate potential customers to buy private party vehicles and other vehicles in your inventory, the above tips can help you determine optimal prices for private party vehicles. At VETTX, we understand how hectic it can become to get quality used cars to list in your inventory and grow your business. Fortunately, we help car dealers access private sellers ready to trade good-quality vehicles. For more information, contact us to learn more today!

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