A lot of thought goes into the process of buying a used car. Of course, there’s reading reviews and taking a test drive. There’s securing financing, assessing the vehicle’s condition, and finding a car with the lowest possible odometer reading and thorough maintenance records. But the most important part of buying a pre-owned vehicle is, of course, making sure the price is fair.
Halfway through 2025, Cox Automotive figures show the average listing price for a used car is $25,470, and inventory hovers at a 43-day supply — the tightest window since 2021. These aren’t ideal conditions, but we’re here to help. Keep reading for a few tips and a fair price checklist to help you avoid paying too much for a used car. (Bonus Tip: You can use the same advice to set a fair price when you sell your car.)
How Can I Tell if a Car’s Asking Price Is Reasonable?
Many factors contribute to setting the price for a used car. Supply and demand are obvious parts of the calculation. Even the paint color is a feature that can affect pricing. Luckily, there’s a place that uses real-life transaction data, local market fluctuations, and seasonal trends to identify vehicles that have fair or better-than-average asking prices.
That place is Autotrader’s used car listings, which indicate when vehicles have “good” or “great” prices, based on the Kelley Blue Book Fair Purchase Price. When the listing price is below the fair purchase price, a small Kelley Blue Book ribbon is displayed by the asking price with “GOOD PRICE” or “GREAT PRICE,” depending on how much below market it is. Since 1926, Kelley Blue Book has been one of the most trusted names in the auto industry, and you might say that it literally “wrote the book on car values.” Kelley Blue Book is a sister company to Autotrader.
When you visit KBB.com to read an expert review of the automobile you’re considering, you’ll see its current fair purchase price, including differences for the model’s trim levels.
PRO TIP: No matter how fair the price seems, ask yourself how much you can comfortably afford. Evaluate financing options and use our Car Affordability Calculator to help determine your budget.
How Do You Determine the Fair Value of a Used Car?
Compare listing prices for cars similar to what you’re interested in. Searching Autotrader for vehicles like the one you want is beneficial for a couple of reasons.
Primarily, it gives you a second opinion regarding pricing and reinforces that the car you found locally has a reasonable asking price. A nationwide search might be necessary for a price comparison if you have your eyes on a specific model that is much less common than a Toyota Camry or Ford F-150. For example, let’s say you saw a 2013 Audi TT with a “For Sale” sign in your grocery store parking lot. It might be hard to figure out the vehicle’s value because it’s the only one for sale in your area. Expanding your search to the country may show you a dozen TT models in different trim levels. Comparing prices of those results helps you determine if the TT you have your eyes on is priced right.
Secondly, extending your search to include other regions might lead you to a better deal on the car you want. You might find another one with low mileage or save big money by purchasing an automobile several hundred miles away, whether at a dealership or from a private seller. Buying cars from out of state is relatively common, so don’t be afraid of expanding your search radius.
How Do You Determine a Good Price for a Car?
When using the phrase casually, a “good price” to one used car shopper might be too much for the next one. “Good” often depends on how much you want the vehicle. Before you get too excited about a seemingly fair and reasonable price, you must figure out the car’s condition. Its value depends on its condition. You must also compare listings that are similar.
To that end, our advice is to test drive the car and get a mechanical inspection from a qualified mechanic before negotiating the price. Services like Alliance Inspection Management’s AiM Certify, owned by Autotrader’s parent, Cox Automotive, will come to your location and inspect a vehicle. That way, if the car needs a few hundred dollars in repairs or reconditioning, you can subtract that amount from the price you’d be willing to pay.
Many aspects of buying a used car can be challenging, but finding out a fair price to pay is easier when using Kelley Blue Book’s value calculators and comparing prices on Autotrader listings.
Fair Price Checklist
- Check trusted pricing. Look for badges on Autotrader’s listings showing a vehicle has a “good price” or a “great price,” based on the Kelley Blue Book Fair Purchase Price. Alternatively, visit our sister site, KBB.com, and read a review of the year, make, and model you’re considering. Then, you can see the current fair purchase price down to the trim level.
- Compare similar listings. Search for comparable vehicles listed on Autotrader to see what similar cars are selling for locally and nationwide. Looking at several similar vehicles provides insight to help you identify if the asking price is reasonable.
- Assess your budget. Determine how much you’re comfortable spending. Using our affordability calculator makes it easy to find a realistic price range you can afford based on your preferred monthly payment.
- Evaluate the car’s condition. Inspect the vehicle’s condition thoroughly. Take a test drive and get a pre-purchase inspection from a qualified mechanic. Factor the cost of any necessary repairs or reconditioning into your offer.
- Adjust for unique circumstances. Consider supply and demand, location, and even features like paint color that can affect the price. Use this information to refine your offer and ensure it matches current market conditions and trends.
Editor’s Note: This article has been updated since its initial publication.
