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Private Party Value
Explanation:
How much a vehicle is worth if being sold by a private party, rather than a dealership. A car's private party value is generally higher than its trade-in value but less than its suggested retail price. The reason for this is a dealer will typically work to refurbish a used car that has been traded in by a previous owner a bit prior to selling it. While private parties can address certain cosmetic issues, they are not able to make as significant improvements or command as high of a price given their limited resources and knowledge.
Our Thoughts:
Haggling is a part of any vehicle purchase, but since private parties are likely less experienced negotiators than dealers, it has the potential to be more effective in a private party sale. Your goal in purchasing a car from an individual should therefore be to pay below the private party value. Referencing private party values from different sources and researching maintenance statistics as well as common problems with the particular type of car you're looking at will be helpful in doing so.