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Why it is Important to Know the Book Value of a Used Car Autos Articles | February 14, 2012
A car's book value is only an estimate of what a car should be worth, the true worth of a vehicle is market driven.? If you are buying a used vehicle, you should be careful to not overpay because you could run into complications with bank financing.


The book value of a car is basically an estimate of what a car with certain characteristics should be worth. The value that any specific vehicle is actually worth is simply whatever someone is willing to pay for it Cheap Jarrad Davis Jersey , because at that moment in time, that vehicle was deemed to be worth that amount to the buyer.? However, if the buyer pays an amount that is significantly higher than what other buyers from the same demographic area typically have paid for cars with similar characteristics, then the buyer has probably overpaid Cheap Marvin Jones Jr Jersey , which is a situation to try to avoid if you are the buyer (although this is probably a good thing if you are the seller).


While it may be interesting to know the book value when you are buying a new car, it is absolutely vital to have a good grasp on the value before you buy or sell a used car.? If you are planning to buy a used car, then you should determine the book value of that car before you begin negotiations with the seller.? That way you will be in a position to make a good counter offer.? I would recommend giving a counter offer that is lower than the book value so that you will have some room to maneuever as the buyer will will probably try to get you to pay a higher amount.? It is very important in this situation to not overpay for the vehicle. Staying around or under the estimated value of the car obviously will save your hard earned money but it is also very important if you are planning on financing the vehicle.? Banks will typically only loan an amount up to a certain percentage of the vehicle's book value, so if you agree to buy a vehicle at a price higher than that amount Cheap Golden Tate III Jersey , you will need to come up with a large enough down payment to at least cover the difference.