If we want to value a car, we will have to use both the subjective as well as the objective approach. Objective valuation refers to year, make and model. Subjective valuation indicates looks of the car. Two used cars can never have the same value even if both are identical in all ways because of the difference in the way they are used. This leads to difference in their prices. 

There are three valuations, which are used for valuing a car.

    * Trade in value is that what you will get when you exchange your used car with some else.
    * Private party value is the one which one gets while selling to an individual.
    * Retail value is higher because most of the time the car has been reconditioned, has got warranty or in some case reconditioned and warranted.

First step is to know about the vehicle. What is its make, its year, model, any special options available in it and also its mileage? Second step is to determine the state or condition of the vehicle in which it is. A vehicle with good looks should also sound good from engine and all its systems in proper working condition. Third step is to determine the value of a used car with the same age and features in the local market and also compare it with the Kelley blue book. As Kelley blue book has been pricing the used cars and vehicles for the last eight decades Fourth and the decision making step is to put a price tag on the car after reviewing its condition and comparing the prices locally available with that of Kelley’s blue book to roughly estimate what the reasonable price of the car should be? 

This is how we will be able to approximately value a used car and make a decision regarding that car.