Everybody loves a good bargain, especially when they buy used cars and get the price that they aimed for. Though websites like Orange Book Value are pretty accurate in estimating a fair price for the vehicle, there’s more to getting the best car deals than just crunching the numbers and data.
Finding the sweet spot when pricing a used car is nothing less than a dedicated form of art. You need to do intensive homework and learn to trust your instincts. If you set the right price then you will easily and quickly get the full value of your car. But if you set the wrong price you’ll have to wait weeks or even months to get a call from someone interested in buying your used vehicle.
The thumb rule to set a good price would be to quote higher than the fair estimate of your used car’s value. This keeps you from receiving the stick end of the bargain, where you end up getting much less than what you estimated. One of the easiest ways is to decide on a price you want to end on, and then work backwards.
For example, if you want Rs. 3.2 Lakh from your car, then list it at Rs. 3.8 Lakh. If your car falls under the luxury segment or is expensive, to begin with, you will want to keep an even bigger margin. For example, to get to Rs. 12.3 Lakh on your top end Toyota Corolla Altis, list it at Rs. 15 Lakh.
Other factors to influence the price of your car include the current market rate at which people buy used cars or the rate they find when they buy cars online. You need to take into account any and all other market conditions that may have an impact on your used car. For example, if your car is a hybrid or has good fuel economy then you are more likely to find interested buyers since the price of gas is currently rising in India. Similarly, if gas prices are at an all-time low then you could sell your SUV, a segment that guzzles fuel, fairly quickly.
A neat pricing trick to attract buyers could be setting your numbers like Rs. 3,95,000 instead of Rs. 4,00,000. Car dealers use this method to set rates like Rs. 3,89,990 and cover the remaining amount in extra service charges to round off the figure anyway. Since you’re selling privately, it is better to keep the number realistic instead.
Most importantly, trust your intuition. Once you’ve done your homework – and by homework, we mean market research, paperwork, and a report on your car’s condition, it’s time to trust your gut. If you’re selling on used car buying sites and have positive feedback and comments about how great your car is, then you can price it accordingly. It’s easy to quote too high but that means you have to be cautious or patient depending on your gut. You could start high and work downwards till you start to get callers and then adjust the price back higher to keep up with the demand. However, don’t go too low to start because people will call and want to buy it immediately. Make sure you check your car’s Orange Book Value to determine how high or how low you can safely quote.