Dealer Trade
This is the price that a seller agrees to when trading a vehicle at a franchised dealer for a replacement vehicle.
A dealer trade price will be influenced by:
- the condition of the vehicle being traded,
- current odometer reading, and
- the number of similar vehicles the dealer already has in stock.
If a vehicle being traded is not of the same make that a franchise specialises in, the value placed on that vehicle may not be as high. If you are trading a vehicle for cash, the value offered by the dealer may be considerably lower than that offered as a trade-in value on another vehicle. A dealer may also factor other costs into the deal when valuing your trade-in. These include reconditioning costs, sales and inventory costs, retaining a reasonable margin and the ability to sell the vehicle. The price on your trade-in will also be influenced by your selection of a replacement vehicle, as a dealer may use some of the margin he has in the replacement vehicle to load the value of your trade.
Private Buy / Sell
This is the price the seller sets their selling price for when selling privately.
This price should recognise the age and condition of the vehicle. Usually this price is intended as an indication only, with the final agreed price dependent on the perceived condition of the vehicle and an individual buyer's negotiating ability. For buyers and sellers who are patient, privately buying and selling is frequently the best means. When selling privately, sellers should get an independent valuation to help them set their sales price. NRMA CarWise offers Vehicle Valuation Certificates right here, that provide specific current market valuations for an individual vehicle
Dealer Retailer Franchise
This is the price you would expect to pay when buying a used car from a dealer, without a trade-in vehicle. Factors that influence this price are reconditioning costs, sales costs and fair profit margin. The price at which you are able to obtain the vehicle will be determined by your own negotiating ability, and the value of the trade-in should you have one.