A lot of thought goes into the process of buying a used car. Of course, there’s reading reviews and taking a test drive. There’s securing financing, assessing the vehicle’s condition, and finding a car with the lowest possible odometer reading. But the most important part of buying a pre-owned vehicle is, of course, making sure the price is fair. If you aren’t sure how to do that, keep reading for a few tips to help you avoid paying too much for a used car. You can use the same advice to set a fair price when you sell your car.
How Do You Determine the Fair Value of a Used Car?
Many factors contribute to setting the price for a used car. Supply and demand are obvious parts of the calculation. Even the paint color is a feature that can affect pricing. Luckily, there’s a place that uses real-life market data to provide a car’s fair value based on similar model details, typical mileage, and location of sale.
That place is Kelley Blue Book, and you can find a used car’s fair purchase price on its website, KBB.com. Since 1926, Kelley Blue Book has been one of the most trusted names in the auto industry, and you might say that it literally “wrote the book on car values.” When you provide details on a vehicle, including its features and condition, the Kelley Blue Book Price Advisor shows Fair Purchase Price and Fair Market Range estimates of what you should pay for new or used vehicles. Kelley Blue Book is a sister company to Autotrader.
PRO TIP: No matter how fair the price seems, ask yourself how much can you afford. Evaluate financing options and use our Car Affordability Calculator to help determine your budget.
How Can I Tell if a Car’s Asking Price is Reasonable?
Compare listing prices for cars similar to what you’re interested in. Searching Autotrader for vehicles like the one you want is beneficial for a couple of reasons.
Primarily, it gives you a second opinion regarding pricing and reinforces that the car you found locally has a reasonable asking price. A nationwide search might be necessary for a price comparison if you have your eyes on a specific model that is much less common than a Toyota Camry or Ford F-150. For example, let’s say you saw a 2013 Audi TT with a “For Sale” sign in your grocery store parking lot. It might be hard to figure out the vehicle’s value because it’s the only one for sale in your area. Expanding your search to the country may show you a dozen TT models in different trim levels. Comparing prices of those results helps you determine if the TT you have your eyes on is priced right.
Secondarily, extending your search to include other regions might lead you to a better deal on the car you want. You might find another one with low mileage or save big money by purchasing an automobile several hundred miles away, whether at a dealership or from a private seller. Buying cars from out of state is relatively common, so don’t be afraid of expanding your search radius.
How Do You Determine a Good Price for a Car?
A “good price” to one used car shopper might be too much for the next one. “Good” often depends on how much you want the vehicle. Before you get too excited about a seemingly fair and reasonable price, you must figure out the car’s condition. Its value depends on its condition. And you must compare listings that are similar.
To that end, our advice is to test drive the car and get a mechanical inspection from a qualified mechanic before negotiating the price. That way, if the car needs a few hundred dollars in repairs or reconditioning, you can subtract that amount from the price you’d be willing to pay.
Many aspects of buying a used car can be challenging, but finding out a fair price to pay is easier when using Kelley Blue Book’s value calculators and comparing prices on Autotrader listings.
Editor’s Note: This article has been updated since its initial publication.
New 2025 Honda Accord Prices
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