What Is Fair Market Value Of A Car?

Fair market value is the price at which the vehicle would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, taking into consideration the vehicle’s age, condition, mileage and other history.

How do I find the fair market value of my car?

To determine the fair market value of a vehicle, use a website like Edmunds or Kelley Blue Book. Navigate to the main page, then click the tab or icon that says “Price My Car” or something similar. Next, enter the year and model of your vehicle, the car’s mileage, and your zip code or city name.

What is car worth by Vin?

Vehicle Value Lookup with VIN Number

The market value tool estimates the retail value of your car, truck, or motorcycle — based on the price that similar vehicles across the United States have sold for in recent months.

Is fair market value the same as trade in value?

Fair market value is the price a reasonably informed buyer is willing to pay for a car, house or another item. Trade-in value definition, usually important when buying a vehicle, may or may not have a real correlation to FMV.

Is Kelley Blue Book or Edmunds more accurate?

This can be helpful – or generate confusion – depending on how realistic you are about your car’s condition. Many experts believe Edmunds values are more accurate than KBB. NADA pricing is often higher than Kelley Blue Book since the algorithm has a standard that calls for all trade-ins to be in very clean condition.

How is fair market value calculated?

Fair market value is defined as “the price for which you could sell your property to a willing buyer, when neither of you has to sell or buy and both of you know all the relevant facts.” To determine your property’s fair market value, the best method is to compare the prices others have paid for something comparable.

What is Blue Book value of my car?

The Kelley Blue Book® Private Party Value is the starting point for negotiation of a used-car sale between a private buyer and seller. This is an “as is” value that does not include any warranties. The final sales price depends on the car’s actual condition and local market factors.

How much should I pay for a car?

According to the 36% rule, it isn’t wise to spend more than 36% of your income on loan payments, including car payments. Another rule of thumb says that drivers should spend no more than 15% of their monthly take-home pay on car expenses.

Is Edmunds TMV accurate?

As you use the tool to get the TMV price, it’s important to be accurate and honest about the options and the condition level of the used car. Most vehicles will be in “clean” or “average” condition. Very few will qualify for “outstanding” condition. Edmunds also provides TMV prices for certified pre-owned cars.