// selling
Trade-in value vs private sale vs dealer retail
The same car has four prices on the same day: what it fetches at auction, what a dealer will pay you for it, what a private buyer will pay, and what a dealer will advertise it for. Every Online Car Valuation prints all four. Here is what each means, how far apart they usually sit, and which one to use.
The four figures
- Auction value
- What the car would likely bring at a dealer or fleet auction, sold as-is to the trade. The floor of the market. In our reports it sits 25% below market value.
- Trade-in value
- What a dealer can pay you when you buy another car, after allowing for reconditioning, warranty, holding costs and margin. Typically about 17% below private sale value in our reports.
- Private sale value
- What a private buyer would most likely pay when you advertise it yourself. You keep the dealer's margin, and you do the work: photos, enquiries, test drives, roadworthy, transfer.
- Dealer retail
- What the same car is advertised for on a dealer's lot, usually with warranty and finance on offer. About 9% above private sale in our reports.
Market value, the headline figure on the report, is the midpoint between private sale and dealer retail: the number a willing buyer and willing seller would most likely meet at, and the figure insurers and settlements generally work from. How each figure is calculated.
Using the figures when you trade in
- Know the trade-in and private sale figures before you walk in. The gap between them is what you are paying for convenience.
- Negotiate the changeover price (new car price minus trade-in) rather than the two numbers separately. A generous trade-in with no discount on the new car is the same deal as a low trade-in with a big discount.
- Expect a dealer offer at or a little under the trade-in figure for a clean car with service history, and lower for a car that needs tyres, paint or a roadworthy.
Using the figures when you sell privately
- Advertise a little above the private sale figure to leave room to negotiate, but below dealer retail: private buyers expect to pay less than a dealer asks because they get no warranty.
- Use the report's comparable listings to set your price against the cars a buyer will actually compare you with this week.
- Kilometres move the price more than most sellers expect. The report shows the rate fitted from the live listings for your model.
Value my car · from A$49.95Compare the two valuations
Questions
Why is the dealer's trade-in offer below your trade-in figure?
Dealers price to the car in front of them. Tyres, paint, service history, roadworthy items and how quickly they can sell your model all move the offer. Ask what they deducted and why.
Is private sale always worth the extra?
Usually for popular, well-kept cars. For an older or unusual car that may take months to sell, the trade-in gap can be smaller than the time and risk of selling it yourself.
Which figure do I give my insurer or solicitor?
Market value. It is the headline figure on the report and the one most third parties mean when they say "what the car is worth".