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Car Valuation Formula & Red Book

Car Valuation Formula lets you calculate True Market Value Of Cars. You will know exactly what the car is really worth, just follow the quick and easy steps…

The most common question asked when buying or selling a vehicle is, what is my car worth? There are many factors that determine this so let’s look at the top 3.

What affects my cars value?

  1. Age and kilometers are the obvious factors.
  2. Car depreciation is usually the biggest factor that affects the re-sale value of any car. As to the amount is usually related to supply and demand of that particular make, model and even color.
  3. Buying habits have changed enormously resulting in smaller cars or city cars becoming more popular than traditional larger family cars. Like the Aussie Falcon or Commodore.

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.

Also 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 must have information by getting a mobile pre purchase car inspection.

Now usually when you’re buying a used car the seller is usually asking the price he/she owes the lender or finance company. No law against that and not what the car is really worth.

The good news is calculating true market value for a used car is really easy if you follow this simple formula and do your research.

Follow These 3 Steps To Get Red Book Valuation

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.

  1. Go to Red Book website and under the Cars tab you will find the research tab.
  2. Put in the make, model and year then “Click Search.”
  3. 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 True Market Value Of Cars

Calculate Market Value Using Red Book Car Valuation
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.

Market Value Of Cars Qld

In Qld the buyer has to pay Vehicle Registration Duty or known as Stamp Duty based on the total amount paid or market value of car.

Vehicle Registration Duty

If you already know the market value you can calculate vehicle registration duty using the Stamp Duty Calculator over at Queensland Transport.

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