Red Book Car Valuation lets you calculate cars market value for free so you know exactly what the car is really worth, just follow the quick and easy steps…
I will also show you how to use my formula so you can calculate true car market value.
Usually the seller is asking the price he/she owes the lender or finance company (no law against that) and not what the car is really worth.
Before buying a used car you can establish the exact price to pay for a used vehicle by using the formula below along with the free Red Book car valuation guide.
Of course there are other variables to factor in when working out the exact used car valuation like repairs, serviceable parts that need replacing because they’re worn out.
If the vehicle has a service history it also helps to tell you the buyer that the seller has put back what they have taken.
You can get this information by getting a Comprehensive Pre Purchase Mechanical Inspection, most important before buying a used car.
3 Steps to Getting Red Book Car Valuation Prices Free
Red Book car valuation guide is where you can find private sale and trade price car values for different makes and models of used cars on the Australian market.
- Go to Red Book website and under the Cars tab you will find the research tab.
- Put in the make, model and year then “Click Search.”
- You will be displayed a Vehicle Match, from here you can “Click View More” to see all variants of that model displayed.
Once you have chosen your model then scroll down until you see the Valuation Prices in the top right corner
In the example below you have the Maximum Private Price (Retail Price) of $15,000 & Maximum Trade-In Price $12,600 both based on the Minimum Average Kilometers traveled for a 2009 model being 80,000km.
Use the retail (private price guide from RedBook) and trade-in values (from RedBook) to determine the car’s market value. To calculate the true market value is the average of the retail and trade-in values.
How To Calculate Market Value Of Cars Using Formula
If the vehicle has a retail value (Private Price Guide as shown in image above from RedBook) of $15,000 dollars and a trade-in value of $12,600 dollars (Trade-In Price Guide as shown in image above from RedBook) the total is $27,600 dollars. $27,600 dollars divided by 2 is $13,800 so the market value of the car will be $13,800 dollars.