How much is my car worth: Instant used car value and trade in value

How Edmunds car values are calculated: Edmunds uses data from a variety of sources, including dealer transactions, car depreciation costs and consumer information. The appraised value is based on factors such as the car's year, make, model, trim, mileage, features, condition level and depreciation.

CarMax is one of the dealers from which Edmunds obtains transaction data. Since June 2021, Edmunds has been a wholly owned subsidiary of CarMax, Inc. However, other than the incorporation of CarMax's transaction data by Edmunds into the appraisal report calculations, CarMax does not participate in or otherwise influence the manner in which Edmunds computes those values.

Which vehicles can be appraised? Just about every make and model is covered, including luxury brands such as Lexus and Mercedes-Benz. The tool appraises vehicles dating back to 1990, so if you own a classic car, this method will not work. In that specific case, you'd need to find a specialized classic car guide, such as Hagerty, to determine its fair market value.

What you'll see in your appraisal report: Your appraisal report will give you all the necessary information to make the best decision if you're selling or trading in. You will be presented with a trade-in offer section and then the three car values on the following tab: trade-in, private party and dealer retail.

NOTE: It is important to know that most of the figures you see in an Edmunds Appraisal Report are estimates based on several factors and are not guaranteed. Just because you see a trade-in value of, say, $25,000 doesn't mean you're going to be offered that amount by a dealership. It should be considered as a target to get close to. You might be offered more and you'll be offered less. The car market can change from day to day.

Trade-in offers: Edmunds has partnered with several dealerships to help customers trade in their vehicle by making them online offers. You'll see a dollar figure here that represents one or more real trade-in offers from our partner dealerships. This is the one possible exception to the rule that the numbers are not hard figures. If you have filled out the vehicle information section correctly and are truthful about the condition level and the corresponding dealership has examined the vehicle in person (and it checks out), the trade-in offer will be the actual price you get.

Trade-in value: The trade-in value is what you can expect a car dealership to offer for your current vehicle. It will typically be the lowest of the values since the dealership needs to factor in reconditioning, lot fees and profit margin.

Private party: The private-party value is helpful for people who prefer to sell the car on their own and can yield the highest return, provided they're willing to put in the time and effort. In this scenario, you can use the private-party value as your price target, perhaps listing the car for a couple of thousand dollars over, to allow wiggle room for the inevitable negotiation.

Dealer retail: This value is useful for used-car shoppers. It represents an average of used car selling prices for that model at dealerships in the area. This helps you determine whether the price you're seeing on the car lot is fair. If you see a used car you like with an asking price above Edmunds dealer retail, we suggest showing this figure to your salesperson and asking whether they can beat or match the dealer retail value. They may not always be willing to budge on price, but by showing them you've done your research, you let them know you're an informed shopper.

If you're shopping for a used car with the Edmunds inventory tool, you can skip this legwork, as nearly all of our listings have an Edmunds price rating that helps you determine whether it is a fair, good or great price.

What's the difference between the CarMax Offer and the Edmunds Appraisal Report?

The CarMax offer is a convenient way to get a trade-in offer for your vehicle, valid for up to seven days. If it is CarMax-branded, it is only valid at CarMax locations. If you have an online offer to redeem, bring it to any CarMax store. Once CarMax verifies that your car's condition, use, and history match the information you provided about your car, you'll leave with payment in hand. Some offers are adjusted after the in-person verification process. CarMax only adjusts online offers if a car's condition, use, or history differs from the information provided. Edmunds partners with other car-buying services to provide more options for people. In those cases, the offer must be redeemed at those participating dealerships.

The Edmunds Appraisal Report, on the other hand, is not an offer. It is an estimate of the car's value based on current market conditions.

Read "What Is Trim on a Car?" if you need more detailed information.

Major features, such as the car's transmission, engine type and all-wheel drive, can have a big impact on the value of the car. The same goes for options such as leather seats, navigation, a sunroof or automatic climate control. If you can remember your car's options off the top of your head, great. If not, here are some suggestions on where to get the information you need.

The vehicle's original window sticker (which has the car's mpg and total MSRP) is the best place to find the options. Unfortunately, few people actually hang on to the sticker. Without it, your best bet is to sit in your car and use your smartphone to check which features it has. It is crucial to get the style and options right. Without them, you may be under- or overvaluing your car.

Be honest about condition levels

Our tool will ask you to pick from five condition levels: outstanding, clean, average, rough and damaged. Most people will likely fall under clean, average or rough.

You might be tempted to choose "outstanding" to get more money for your used auto. After all, you've pampered your car the entire time you've owned it, right? But the truth is that few cars qualify for this rating.

Outstanding should typically be considered for older, very low-mileage vehicles when well-preserved examples are hard to find. Picture a low-volume sports car that was hardly driven.

Edmunds used car prices typically start at a baseline "clean" condition. After that, the vehicle's price is adjusted downward to reflect the cost of bringing it up to a clean state.

If your vehicle was in a minor accident, there's still a chance it could be considered "clean" if it was repaired with factory parts and according to the manufacturer's specifications. But that decision is often made during the final in-person inspection of the vehicle.

In general, cars that have been in accidents tend to lose market value, but it is difficult to gauge how much. Some factors that affect the value include the severity of the damage, the quality of the repair, and the demand for that particular model.

In general, it is always a good idea to be honest and objective about the state of your used vehicle. It is better to err on the side of caution and rate the condition lower than to get your hopes up with a high rating, only to be later disappointed. Try to see things from a potential buyer's perspective. Wouldn't you want the person you're buying a car from to be honest?

If you're trading in your vehicle

After filling out an appraisal form, you'll often be presented with an instant cash offer. The offer lets you sell your vehicle at participating dealerships. Alternatively, you can simply take your car to any dealership and ask the staff to appraise it, though this will often take longer. Regardless of the route, you'll want a reference point to see whether the dealership's trade-in offer is in the ballpark. This is where the Edmunds trade-in value comes into play.

The process is simple. Just compare your dealership trade-in offer with the Edmunds trade-in value. If the dealer's offer is higher than Edmunds trade-in value, you're in the best-case scenario and should take it. If the offer is less than the trade-in value, it could be due to several factors. Sometimes the dealership has too many vehicles like yours on the lot. Perhaps you made an error in selecting optional equipment or you were too optimistic about your car's condition. (Most cars will be in clean or average condition.) Or perhaps market conditions have shifted, as they did at the beginning of the COVID-19 pandemic, and online tools haven't kept pace with the trend.

Ultimately, keep in mind that the Edmunds trade-in value is an educated estimate. The more real-world offers you get on your car, the better feel you'll have for its real-world value.

If you're selling privately

This option takes the most time and effort, but it could also yield the highest payment. You'll need to photograph your vehicle and list it on a classifieds site, meet with strangers safely, and exchange money and file paperwork to close the sale. Selling privately can take anywhere from a few days to a few months, so this method generally isn't the best if you need the money quickly. We don't mean to scare anyone off — we just want to be honest about the work involved.

Once you're ready to publish your listing, use the Edmunds private-party value to set the asking price. There's a strategy for setting a price that we detail in "How to Sell a Car." Essentially, you'll want to ask more than the private-party value to build a cushion for buyers who want to negotiate. The same rules mentioned above regarding the vehicle condition level apply to private-party prices as well.

If you're shopping for a used car at a dealership

This option is for people who are buying a used car, not selling. In this case, go to Edmunds and enter the details of the vehicle as if it were your own. The dealer retail value will be the most pertinent to you. This is an estimate of what you might pay for that same car at a dealership.

The dealer retail value gives you a reference point. It shows whether or not the advertised price is a fair or great deal. If the dealership's asking price is higher than what you see on Edmunds, you can use it as a reference and ask the dealer to match or beat that price. This sort of "informed negotiation" typically goes over better with a salesperson since it shows that you've done your research.

Be an informed shopper

Whatever you do with your car, an appraisal will always put you in the best position to succeed. So go grab your vehicle's details and get an appraisal — it'll improve your chances of scoring a great deal.