Thinking of selling or trading-in your vehicle, but not really sure what you can get for it? There are many online tools that can help give you a rough idea of what’s it worth, but how can a heavily used vehicle that’s been in an accident have the same value as a well taken car of vehicle with low mileage? Just because they’re the same age? Thankfully, that’s no longer the case.
What is History-Based Value?
Simply put, History-Based Value determines how much a used car is worth based not only on make, model, and age, but also on that vehicle’s individual history. Every car has a completely unique history, so it’s value should factor that in. Looking beyond just the make and model, History-Based Value incorporates the vehicle’s entire past to generate values. It also provides you with 3 different values, depending on whether you’re looking to buy or sell privately, trade-in, or go the retail route, giving you an accurate baseline for any negotiation.
How does CARFAX Canada use History-Based Value to determine a used car’s value?
Value for a vehicle isn’t something that’s static – it changes based on every person’s unique experience. Some things that can greatly affect the value of a vehicle are:
- The year, make, model, trim and features of the vehicle
- Odometer reading
- Where the vehicle is located
- Accident or damage history
- Service and ownership history
- The vehicle use (ie. if it was a rental, used in a vehicle fleet, or for personal use)
- Market trends that are adjusted weekly
These criteria can help to get a sense of what shape a used car may be in and then determine a specific value for it. For example, you wouldn't expect to pay the same price for a car that has been in an accident versus one that hasn't.
To get started with your car value calculation journey, there’s a free tool called the Value Range. Unlike other calculators, it’s based on what others paid for similar vehicles, not just the asking price. Plus, it adjusts for odometer, real-time market fluctuations and location to generate a realistic price range.
Why is History-Based Value important?
History-Based Value is Canada’s first and only valuation model that automatically adjusts for a vehicle’s unique history when determining how much it’s worth. With access to more vehicle history data than any other valuation tool in Canada, History-Based Value can offer a more accurate estimate than other tools on the market.
How is History-Based Value different from other valuation tools?
Some valuation tools take the information you provide about a vehicle and compare it to a cross-section of similar vehicles and averages of vehicles currently listed in the market to provide you with a rough value. CARFAX Canada History-Based Value leverages millions of current and historical data records to accurately predict a vehicle’s value. History-Based Value factors a vehicle’s unique history into the equation. The result is a custom-built valuation for your specific vehicle.
How does History-Based Value help you?
There are plenty of ways that having an accurate value for a vehicle can help:
- Buying a used vehicle. Nobody likes overpaying for something. Knowing what the History-Based Value is, you can go into negotiations with a number in mind that’s backed by the history of the vehicle.
- Selling a vehicle. Previously, you would need to look around at what other vehicles were selling for online through listing sites or dealerships and take a rough guess at what yours should be. Now, History-Based Value will give you a number that factors in the car’s unique history taking the uncertainty out of how to set your asking price.
- Trading-in a vehicle. Similar to selling privately, you would need to look at online listings to get an idea of the value. But unlike selling privately, those prices don’t reflect trade-in values since dealerships have extra costs necessary to re-sell the vehicle. History-Based Value can factor in all of the history as well as estimated dealership costs to the value. This helps with negotiating trade-in values if you’re armed with a value from a third-party tool.
How do I get a History-Based Value for my used car?
When you purchase a CARFAX Canada Vehicle History Report, you get access to the History-Based Value report for that vehicle at no extra charge.
You can also visit our History-Based Value page to learn more.