Q:

Why should you price your truck?

A:

Quick Answer

The primary reasons to determine the price of a vehicle are for resale or insurance purposes. Determining an appropriate value for a truck helps avoid losing money when selling or trading in the vehicle, and also helps avoid paying for too much or too little insurance coverage.

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Full Answer

Pricing a truck when planning a sale or trade-in to a dealer is vital for negotiating a fair price for the vehicle. In the case of a sale, having the fair market value of the truck available helps a seller avoid taking too little for the vehicle. In the case of a trade-in, pricing the truck beforehand not only allows the owner to know if the trade-in value that a dealer offers is fair, but also to know how much the value of the trade-in is likely to offset the purchase price of a new vehicle.

Pricing a truck is also helpful when determining the correct amount of insurance to maintain on the vehicle, since it may not be worthwhile to pay for extensive coverage on a truck with a low resale value. If there is a good chance that significant damage may cost as much as the market value of the vehicle, it is sometimes worth taking out less extensive insurance to save money in the long run.

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