The starting point for figuring out how to set your asking price when selling a vehicle is understanding what you have, comparing apples to apples, looking at current supply and demand, or maybe you have a dollar amount you really need to get out the vehicle but it’s good to understand the market you are selling in if you can.
Know what you have
Most people understand basically what they have, however, sometimes people inherit, or find or are given a vehicle that they don’t actually know that much about. What you really need to know are the basics: year, make model, miles, restored or original, condition, engine size and transmission.
Apples to Apples
You will want to compare apples to apples. You might have the same year, make and model of something that seems to have sold for a lot of money- is it the same trim level? It is the same engine? Similar miles? Engine size? Condition? Is yours a coupe or convertible?
Supply and demand
Generally, vehicles with the lowest miles, in the best condition, with the biggest engines or restored to the highest levels are going to command the most money. Convertibles are at the top of the food chain, the 2-door coupes and then sedans.
Supply and demand are going to be a factor as well. If there are a lot of similar vehicles on the market, there might not be a demand for the vehicle. However, if there are not a lot, it could work for you, depending on what type of vehicle it is.
Comparable vehicles/results
It’s good to look at what other vehicles are selling for or are currently listed for, and you can use the same sites you are looking at to sell your vehicle on to do your research. We find KBB, NADA, and results from listing and auction sites (like Classic.com or results from auctions that are posted such as Barrett-Jackson’s results tab) are a great place to look at current market comparable vehicles and get an idea of what your vehicle might do.
Private selling=Take your time
When you are selling/listing privately, you might have the luxury of starting your asking price high. Many people find they go through a “sales funnel” – where you start high and then as time goes on, and the vehicle is not getting attention or selling, the price lowers and you are just ready to sell it!
Some people will start as the lowest price and hold, knowing their vehicle is already best priced, in an effort to move it quickly and cut through the haggling.
The longer a vehicle is listed, there does seem to be a power shift from you as the seller to potential buyers. The same for vehicles that go to auction with reserves- each time they don’t meet the reserve, it’s sort of a mark again the car and a sign they are asking more than the market is at the time.
Auction= Most accurate snapshot of the market
A no reserve auction will show in real time what the market/demand is for a vehicle at any given time. Steve Davis, Barrett-Jackson company president has said, “It is the most accurate snapshot of the market” in that moment. That’s why at Barrett-Jackson, before selling no reserve, there is a market analysis to make sure sellers and the company are on the same page as best as possible before hand and then let the market dictate the sale, with all the help of marketing and salesmanship that is available to help!
Photos courtesy of Barrett-Jackson