What Is Vehicle Wholesale Value?

When buying or selling a car, price is usually a major determining factor. That price is normally determined by the vehicle's wholesale value.

Wholesale Value

A car's wholesale value is the price that a dealer will pay for it when it is either sold or traded in toward the cost of a new vehicle. More commonly, it is known as a car's trade-in value.

Determination

There are many factors that go into a car's wholesale value. The condition of the exterior and the car's mileage are prime examples. The value can also be determined by the make and model of the car, particularly if the dealer has a surplus of that vehicle on the lot.

Value

Ultimately, it is the dealer you do business with that determines the car's value. Whatever they decide to pay or give you in trade-in becomes the wholesale value. However, there are different books that can give you a guideline on the car's approximate wholesale value.

Expert Insight

The most notable guide for a car's wholesale value is the Kelley Blue Book. Guides set a reference point for wholesale values that a dealer can use before making a final decision.

Maximize the Wholesale Value

Check the car's appearance and maintenance; how it looks and how well it runs can help boost its value. Before selling it or trading it in, take it to someone who can properly appraise it and tell you what the value is. Ask for the car's actual cash value to give you a truer idea of what it is worth.