Question 1

How does CarGurus come up with its car valuations?

Accepted Answer

As the #1 most visited car shopping site in the US, we crunch data from millions of listings to make our car valuations as accurate as possible. For any given car, we can analyze key factors like make, model, age, and mileage, and find similar vehicles on the market for comparison. This allows us to assign deal ratings that show how a car ranks in the market, from a "Great Deal" all the way through to "Overpriced". And since we're constantly updating our car valuations tool with the latest listing prices, you're always getting real-time insights on how much a car is worth.

Question 2

How accurate are CarGurus values?

Accepted Answer

We pull in real-time data and market analysis to generate the most accurate car valuations that our technology allows. Valuations are based on a detailed analysis of comparable current and previous car listings in your area, ensuring they reflect current market conditions. However, as with any pricing tool, CarGurus valuations may not capture every nuance of a given vehicle, such as condition or maintenance history.

Question 3

How to use CarGurus vehicle values when buying a car?

Accepted Answer

For almost every car listed for sale on CarGurus we automatically provide an instant market valuation, making it simple to see how it compares with similar models in your search area. What’s more, our valuations feed into a deal rating, which shows whether the car is a great deal, a good deal, or a fair deal, or if it’s overpriced.

Question 4

How to use CarGurus vehicle values when selling your car?

Accepted Answer

When selling your car, simply enter its license plate or VIN at the top of this page (or choose the make, model, year, and mileage from our dropdown menus), and our car valuations tool will reveal what it’s worth in the current market.

Question 5

What’s the difference between trade-in, private sale value, and CarGurus Instant Market Value (IMV)?

Accepted Answer

The difference between these terms relates to how you plan to sell your car and the type of valuation you're looking for:

Trade-in value: This is the amount a dealership is likely to  offer when you trade in your car. This option is often lower because dealers need to cover their business costs.

Private sale value: You can expect to get more for your car if you sell it  directly to someone yourself, rather than trading it in to a dealer. However, this requires a good amount more work on your part.

CarGurus Instant Market Value (IMV): Our proprietary valuations tool provides an estimated retail price for your car based on real-time data from millions of cars listed for sale.

Question 6

What determines my car’s value?

Accepted Answer

Your car’s value depends on several factors: its age, make, model, features, mileage, condition, and history, to name some of them. Most cars lose value over time, with the biggest drop usually happening in the first few years. Market trends, demand, and seasonality also play a role. For instance, fuel-efficient cars become more valuable after gas prices spike, and convertibles tend to sell for higher prices in the summer. To get the best price, keep your car in great shape and maintain a clean history report.

Question 7

Can I trade in my car if it’s not paid off?

Accepted Answer

Yes, you can trade in a car that still has a loan on it. Start by checking with your lender to find out how much you owe. When you trade in your car, the dealership will usually pay off the remaining balance.
If your car is worth less than what you owe (known as negative equity), the difference is typically added to your new loan. On the other hand, if your car is worth more than your loan balance, the extra value can go toward your next purchase.

Question 8

Which cars hold their value best?

Accepted Answer

Some cars retain their value better than others, often due to brand reputation, reliability, and market demand. Models like the Jeep Wrangler, Toyota Tacoma, and Porsche 911 are known for their strong resale values. Brands like Toyota and Subaru consistently produce vehicles with low depreciation rates.
To identify cars that hold their value, compare prices of similar models over time using tools like [CarGurus’ used car pricing index](https://www.cargurus.com/research/price-trends) and market value guides. You can also check lease deals to see a model's residual value—the price the dealership sets for the car at the end of its lease. Choosing a vehicle with strong resale value can save you money in the long run, whether you're trading it in or selling it privately

Question 9

How does previous  accident damage affect a car’s value?

Accepted Answer

If a car has been in an accident and subsequently repaired, it is likely to be worth less than a similar car that’s never been in an accident, even if repairs restore it to its pre-accident condition. The extent of the difference in value depends on factors like the type of damage and market demand. Major accidents or frame damage usually cause the biggest drops in value, and an accident history can make buyers hesitant, reducing a car’s resale or trade-in value.

Question 10

How do banks and insurance companies determine a car’s value?

Accepted Answer

Banks and insurance companies estimate a car’s value by looking at its make, model, year, mileage, and condition. They also consider market trends. Resources like CarGurus, Kelley Blue Book, and NADA guides help them understand the market, while vehicle history reports (e.g., CARFAX) help them to check for accidents and maintenance records. For insurance claims, adjusters assess the car’s value based on its condition right before the accident. They may also inspect the car to evaluate damage and wear before finalizing their estimate.

Question 11

How do I figure out my car's residual value?

Accepted Answer

Your car's residual value is its worth at the end of a lease. To estimate it, start with the car’s Manufacturer's Suggested Retail Price (MSRP) and apply the expected depreciation rate over the lease term. For example, if a car has an MSRP of $30,000 and depreciates by 50% over three years, its residual value at the end of the lease would be $15,000. Residual values are typically set by the leasing company using historical data and market trends. Other factors such as mileage, condition, and market demand also influence residual values. To get an estimate, use third party resources like CarGurus or review lease deals for similar models. This can help you determine whether the buyout price at the end of the lease is a good deal compared to its market value.

Question 12

Which site provides the most accurate car values?

Accepted Answer

No single site has the "most accurate" car values. Since each platform uses different methods and data sources, estimates will vary. For example, Kelley Blue Book collects weekly data from wholesalers, dealers, and private sales. CARFAX  looks at vehicle history data, including details like past accidents and service records, to determine valuations. CarGurus calculates Instant Market Value (IMV) daily by analyzing over a million vehicle listings, providing a current and detailed view of the retail market in your area.

Question 13

How accurate are NADA values?

Accepted Answer

NADA (National Automobile Dealers Association), now owned by J.D. Power, calculates its vehicle values using data from dealership sales, auctions, car manufacturers, and other industry sources. These values generally assume vehicles are in good condition and may not fully account for factors such as specific mileage, condition, or regional market trends. While NADA values serve as a useful starting point, they might not always reflect the precise market value of a specific vehicle. For a more accurate estimate, consider consulting multiple valuation resources, such as CarGurus Instant Market Value (IMV) or Kelley Blue Book.

Question 14

How accurate are CARFAX values?

Accepted Answer

CARFAX provides vehicle valuations through its History-Based Value tool, which uses data from over 100,000 sources, including state DMVs, insurance companies, and auto auctions. This tool considers a vehicle's unique history—such as reported accidents, service records, and previous ownership—to estimate its market value. While CARFAX valuations offer a personalized estimate based on a vehicle's specific history, they may not account for current market conditions, regional demand, or unreported incidents. For a comprehensive assessment, it's advisable to consult multiple valuation sources, like CarGurus Instant Market Value (IMV) and Kelley Blue Book.

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