In this video I show to how to estimate car price by following one simple rule of thumb. One of the most frequent questions I get is “How much will this car be worth next month?” I’ll show you where you can find the free and easy to use data to make a realistic estimate of new and used car prices in the future.
How to Estimate Car Price
Car price is a function of supply and demand at any given point in time. To estimate what any car’s price will be in the future use the residual value trends for the specific car you’re interested in buying. Residual value is the price car buyer’s are willing to pay for a used car from a specific year with a range of mileage. Look at the trends to see how much the residual value has declined over the past 12 months, and then divide that value by the number of months passed to estimate how much value the car is losing per month.
Car price varies by year, make, mileage, equipment, condition, and location but looking at general trends in residual value will give you a realistic estimate for future car prices.
