How to tell if a used car price is fair
There is no single true price for a used car, but there is a fair range, and you can find it. The method is the same one dealers use: compare similar cars, adjust for differences and look at the total cost.
Find comparable cars
Search for the same year, make, model and trim, with similar mileage, in your area. Look at several, not just one. Note the range and the middle.
- Same model year, or one year either side.
- Same trim and drivetrain.
- Mileage within about 15 to 20 percent.
- Listed near you, within a distance you would drive.
Adjust for differences
- Lower mileage is worth more, higher mileage less.
- A clean history, service records and one owner add value.
- Accidents, a branded title or wear lower it.
- New tires or a recent major repair are worth something; worn tires are a cost you will pay soon.
Compare the total, not the sticker
Add tax, title, registration and the dealer's fees to each car, and compare the out-the-door totals. See what out-the-door price means.
Be wary of prices that are too good
A price far below similar cars is a reason for questions, not excitement. It may reflect a problem, a branded title, or in the worst case a scam. See used car scams to avoid.
A worked example
Say you are looking at a 2018 compact hatchback with 52,000 miles. You find five similar cars within 50 miles, listed from $12,900 to $14,500, with mileage from 45,000 to 60,000. The middle is about $13,700. The car you are considering has the lowest mileage in the group and a clean history, so it can fairly be priced a little above the middle. If it is listed at $13,995 with a clean report and new tires, that looks fair. If it is listed at $11,500, the low price calls for questions: why is it so far below the others?
Then add the tax, title, registration and the dealer's fee to each car's price. A car listed for less with higher fees can come out above one listed a little higher with lower fees. The out-the-door total decides.
A price is only fair for the car you inspected
A fair price assumes the car is what the seller says it is. A professional inspection and a history report confirm it. If they show problems, adjust your offer or walk away. See how to inspect a used car.
Common questions
How do I find the market value of a used car?
Compare similar cars listed near you, and use price guides as a reference. Combine them, and adjust for mileage and condition.
Are price guides accurate?
They are estimates. Real asking prices near you and the car's actual condition matter more.
Is a lower price always better?
No. A low price can hide problems. Compare the total cost and the condition together.
Keep reading
General information, not legal, tax or financial advice. Rules and prices change and differ by state; check with the right professional or your state agency before you act.