How It Works: Appraisals – The Value Your Car Commands

How can I find out my car’s value?

In today’s digital world, the sky is the limit. It used to be, to find out the value of a car, one had to visit a car dealership, where more than likely the appraiser was going to value the car in the dealership’s favor and the sales pro would try to strong arm you into trading your car in based on the dealership’s assessment. But today, the World Wide Web has largely leveled the playing field. Here are a few ways to ascertain the value of your car before you sell it or demand the insurance company reevaluate its agreed value.

(1) Dealership Appraisal

Okay, we all know these guys can be merciless – they’re all in business to make money, and they don’t make money if they don’t sell you a car. So, expect to get beat up a little bit here. Just remember, it’s business – they need to buy your car at a lower rate so they can sell it for an increased figure. That said, if you’re in a time crunch and looking to get rid of a car fast, a dealer will certainly give you an offer even if you don’t buy anything from them – but again, you’re not likely going to get the best price.

(2) Professional Appraisal

Often times, the best way to go is an independent professional appraisal service. They are not cheap, but you get what you pay for, and these can be very well worth the money and time. By the time the appraiser is done with your car, you’ll have a document discussing the vehicle’s strong and weak points, and the appraiser’s qualifications. One of the nicest things about a professional appraisal is that the third-party evaluator has no skin in the game other than to discuss what the car is worth – they are not going to buy it or sell it for you, they only have an interest in attesting to the car’s market value.

(3) Online Appraisal

Kelley Blue Book and the North American Dealership Association (NADA) both have terrific online appraisal tools on their websites, as do Hagerty and Hemmings. But, it’s crucial that you are brutally honest about your car and its possible flaws and shortcomings, lest you receive an incorrect evaluation of your car.

Where can I find a professional appraiser?

There are a number of people in your own circle who can likely point you in the right direction for a third-party appraisal service, such as your insurance agent, a specialty car dealership, or maybe even your car club. Below are two national auto appraisal associations with their own standards and certification processes that can also be helpful.

The American Society of Certified Auto Appraisers
Certified Auto Appraisers

The Bureau of Certified Auto Appraisers
Bureau of Certified Auto Appraisers – BOCAA – Become a IACP Auto Appraiser

Why should I have my car appraised?

There are a multitude of reasons to have your car appraised, even if you’re not going to sell it.

(1) Insurance

If you’re looking for coverage from a specialty car insurance company, the evaluation can be very handy establishing an agreed value policy. Conversely, in the event of a total-loss accident where you were not at fault, the other insurance company will offer you an amount to replace your car. It may or may not be fair – if you’ve got a third-party appraisal showing what your car was worth before the accident, it could go a long way in getting what is rightly due.

(2) Selling

If you’re looking to sell the car, it’s a good idea to get a feel for its value, even if you think you know. This way, you can have a realistic expectation of what a buyer might pay for your car. If you’re listing a car on a marketplace, then you can list the car at the right price, a price based on your actual car, not just a speculated idea of its worth. The price point you set is completely substantiated by that third-party appraisal. If you’re listing a car in an auction, then you can decide if you’ll set a reserve or have confidence that the right buyers will bid on your listing up to your expected value.

(3) Trade in

When you go to a dealership to trade in your car for a new one, it’s very likely the dealership will low-ball your car. It’s just business. But, it’s a good idea to protect yourself against getting gouged too much. Dealers need to have a little bit of play in the price to know they’ll be able to sell the car later and not lose money. The NADA website is excellent at helping you figure out roughly what a dealership will offer you for your car and help you find the best deal.

(4) Keeps everyone honest

With a third-party appraisal, it gives you and even your potential buyer peace of mind knowing that no one is grasping at straws for value. Instead, there is a professionally-derived document attesting to the actual value of the vehicle in question.

What goes into a vehicle appraisal?

While it’s easy to look at comparable cars that have sold online and get a feel for a car’s worth, an actual appraisal will take into consideration a number of factors that better define its worth. Things like its service history, overall condition, age, mileage, use, and number of previous owners will all come into play.

(1) Service history

Proving that your car was maintained regularly by a qualified mechanic is crucial to proving your car is in tip-top-shape, and therefore worth more closely to the top of the value scale. Keeping a file of service receipts is paramount.

(2) Overall condition

Not many people want to buy a vehicle that’s showing excessive wear and tear, either mechanically or cosmetically. It’s a great idea to always keep your car clean and keep up its appearance inside and out with professional detailers, body shops, and mechanics. Again, keep those receipts. While it might seem superfluous, it shows that you were a superfluous owner, a person from whom someone should want to buy a car.

(3) Age

Just because it’s an older car doesn’t mean it’s a jalopy. How you’ve maintained a vehicle through the years separates those that can command high dollar figures on the market, and those that cannot. But, the truth is, a car’s value declines as it ages, in most circumstances, so it’s important to maintain it mechanically and cosmetically. In other circumstances, an older specialty car could command a high value depending on current demand.

(4) Mileage

People often put a lot of credence in mileage, and for good reason. Generally speaking, the more miles, the more needy and expensive a car is going to be. But, this isn’t always the case. Again, showing that you’ve maintained your car mechanically and cosmetically will help hold the value up because a buyer will see all that has been done already.

(5) Use

This is a fun one. How have you used your car? Was it used as an Uber or Lyft? Did you rent it out on Turo? Has it been used in speed and agility contests? Now, granted, you don’t have to disclose this stuff. But, in this digital age, so many things are discoverable online, that concealing a vehicle’s use can be akin to lying. Again – does it matter if you rented it out or gave people rides or even raced it if you can prove it’s been maintained? Not really. Because you’ve taken care of it and here are the receipts to prove it.

(6) Number of previous owners

Again, very discoverable online, so tell the truth as you know it. In many cases an appraisal will disclose the number of owners, but this normally only applies to vehicles built after a certain year. It matters because in many cases people want to buy cars that have been with the same person for a number of years, or has only been kept by a couple of owners since it was new.