Cars play a huge role in many Americans’ lives. For getting us from place to place, to driving us to work, to even being our place of work in the case of independent delivery specialists, a comfortable car such as an SUV often becomes essential. If you consider the number of families that also rely on SUVs to get their children to various school and sports events, it’s no surprise that they’re among the most common vehicles on the road.
But no matter how useful or beloved your SUV has become to you, it may eventually be time to part ways with it and upgrade to a new one. If you’re looking to trade in your current SUV, it can help to know what it’s worth on the market. This value depends on many factors, and the trade-in value at a dealership will generally be lower than the amount of money you can get for the vehicle by directly selling it to a buyer. Each car is unique, though, so there are several things to know before you can determine how much your SUV is worth today.
Factors Influencing Your SUV’s Value
A few key factors can have a notable impact on your SUV’s value, both as a trade-in and in private sales. While the vehicle’s make and model can determine the starting point, these other factors ultimately determine the money you’ll get for your car.
- Mileage: Even though you can’t tell how many miles a car has driven from its appearance, its mileage can have a significant impact on its price. It’s fairly standard for cars to have around 10,000 miles on them for each year they’ve been on the road, so an SUV used much less than that amount may command a higher price in the used market. Likewise, SUVs that have been driven more miles may have a lower market value.
- Condition: A vehicle’s condition includes everything from how it runs to what it looks like. Cosmetic scratches and imperfections can reduce your SUV’s value, just as damage to the mechanical components could. If your car has a faulty window motor, worn tires, or rust in the wheel wells, it may reduce the amount of money you can get for your trade.
- Accessories: Many SUV owners install aftermarket upgrades, such as improving the audio system, getting high-quality wheels, and making other adjustments. Even excluding these changes, each SUV model has design variations according to different editions (often with letter codes such as “EX”, “LE”, “S”, or others). These also affect its market resale value.
- History: Even if your SUV is in good condition, a history involving accidents and major repairs may make potential buyers think twice. Repairs are not always guaranteed to return vehicles to a like-new condition, but as long as the vehicle is running, you can typically expect to get something for it. Stay alert regarding what shows up on vehicle-history reports such as Carfax so that there are no surprises when you’re assessing the car’s value.
- Location: Last but not least, the location in which you’re looking to sell your vehicle plays a part in the going rate. As market conditions vary depending on locality, cities with a glut of used cars for sale may have lower prices overall. If you’re in a city with higher demand and lower supply, you can likely command a better rate for your vehicle.
How to Get the Most from Your SUV
While there are sites such as Kelley Blue Book that can provide estimates, an SUV’s value depends on what you can get from the dealership or private buyer. To get the best return, always make sure to act in good faith. Fully disclose any current issues that the car has so that there are no surprises when a mechanic checks it out on the buyer’s behalf. There are also small fixes you can do before selling it that can increase its value. Often, spending $500–$1000 on some cosmetic repairs can increase the SUV’s trade-in value.
For a good rule of thumb, cars and SUVs tend to lose about 15% of the prior year’s value each additional year that they’re on the road. For example, if you buy a car worth $20,000, it will be worth about $17,000 next year (85% of 20,000) and worth $14,450 the year after (85% of 17,000). This math won’t be exact, but it helps determine a “ballpark” value for your SUV. Ultimately, the market will determine the actual value of your SUV when you want to sell it, but it never hurts to be prepared when you anticipate making a big financial decision for yourself or your family.