How to Evaluate a Used Car Price

When you're car shopping, it's a smart idea to educate yourself about the particulars of buying a vehicle and do thorough research on the type of car you're interested in purchasing. When you find a car you like online or in the newspaper, take some time to evaluate the price quoted by the seller before committing to the transaction.

• 1

  Look up the Kelley Blue Book value of the used car to evaluate whether it's fair. Search for the exact year, make and model to get a range of suggested prices for the car, ranging from fair to excellent condition. The Kelley Blue Book website provides suggested prices if you were to purchase from a private party or dealer.

• 2

  Ask the seller for the VIN (vehicle identification number) for the car. Purchase a vehicle history report. You can get one from the state DMV (department of motor vehicles) where the car is registered or by using a third-party service. Examine the vehicle history report to see if there were any major accidents or issues of concern associated with the car in the past. For instance, if you find that the car had more than a few owners, this could indicate that it's been through a lot of wear and tear over the years. Discovering negative information in the report could justify a lower price than the suggested Kelley Blue Book value.

• 3

  Print the Kelley Blue Book value and vehicle history report to bring with you when examining the car. Take a very close look at both the exterior and interior to evaluate the condition. Look for dents and scratches on the exterior. Check for ripped seats and broken components on the interior. Bring a mechanic with you to evaluate the condition of the parts under the hood. Test drive the car as well.

• 4

  Examine the definitions of "fair," "good" and "excellent" condition suggested by Kelley Blue Book when evaluating whether the car you want to purchase is priced right. Use these definitions, along with information you've retrieved from your vehicle history report, to make a final decision on the condition and whether the price quoted by the seller is fair. For instance, a car in good condition has minimal or no body damage and runs well while a car in fair condition may just meet minimum state vehicle requirements. Keep in mind that determining the condition of the car you're examining is up to you.