What is my used car worth?

Advertising your pride and joy for sale can be a 'hit or miss' affair sometimes. Buyers will back away if it looks too expensive.

And when an owner takes a vehicle in to be valued for a trade-in on a newer alternative, the figure offered is likely to be heartbreakingly low. That may be because the owner has an over-inflated view of the car's worth, and may be equally appalled by the offer from the insurance company for a total constructive loss – a write-off, in other words.

How do you work out what's a fair sum for your much-loved machine?
You need ammunition to negotiate with the insurance company, or you need to know whether it's better to sell the old banger privately rather than to the trade (hint: usually selling privately is the better option, convenience aside).

If you just want to get rid of your used car, and the money matters less than convenience, there's always carsales' Instant Offer.

But if you prefer to sell privately, nailing it for a quick sale without leaving yourself short demands a bit of research first.

An expert car valuation service such as RedBook can at least provide a 'ballpark' figure. It may be a number that makes certain assumptions that don't necessarily apply to your used car, such as condition, mileage, and potentially any valuable options fitted.

Don't just rely on a car valuation service like RedBook to arrive at what you believe the used car should be worth. Check listings similar to your used car at carsales.com.au to get a feel for market value.

Filter the listing according to the on-sale date, powertrain variants, trim level, or anything else that narrows the list down to a group of vehicles approximating your own. Sort on price (so the least expensive will be first on the list, or vice versa) and look at such factors as kilometres travelled, for instance.

If the vehicle is being sold without a roadworthy certificate, as an example, be prepared to offer a discount worth hundreds of dollars (or even thousands).

When looking at this list of vehicles, read between the lines. An odometer reading below 10,000km a year indicates more time spent in commuter traffic than on the open road. Everything wears faster in stop-start driving, yet the market rewards lower kilometres.

Other issues to consider in arriving at a value for your car include whether it's been owned by a fleet in the past – a white Toyota Camry in a low-grade specification, for instance. But even a 'fleet queen' can hold its value surprisingly well if it's been operated by a particular fleet known within the industry to maintain its cars to an impeccable standard.

Try to put yourself in the place of a shopper. What does the buyer want? If it's something collectible, you'll know what that is.

But if it's an uninspiring 'shopping trolley', the price you set in your advertisement becomes critical. Something like that sells almost exclusively on value to the buyer. You can boost that value by highlighting frugal running costs, reliability or ease of use for inexperienced drivers in an advertisement.

Once again, low kilometres appeal to potential buyers, and any unexpired portion of the factory warranty or a transferrable extended warranty, will improve the worth of even the dullest offering. How much more will depend on all those factors thrown into the mix.

Let's take the Nissan Tiida as an example. A 2011 model will appeal to P-platers (and their parents) who would rather buy something built in the current decade.

First and foremost, has the Takata airbag on the driver's side of the Tiida been replaced? It bloody well should have been by now. If not, the prospective buyer will use that as a bargaining chip. His or her inconvenience may cost you hundreds of dollars.

Is the Tiida a sedan or a hatch? Is it in ST or Ti trim level? How many kilometres does it have on the clock? Is it in good nick for its age? Has it been serviced regularly, and by a dealer specifically? Is it subject to known faults?

All of these points will affect the perception of the Tiida in the eyes of a buyer, and that will make it easier or harder to sell, accordingly.

For the sake of this argument, let's posit a Tiida Ti hatch with automatic transmission. An automatic transmission makes the Tiida easier to sell than a manual version, and people buying in this segment of the market usually prefer hatchbacks over sedans.

The Tiida has been serviced regularly, it's in neat and tidy condition for its age and has travelled 97,800km. Garaged every night, the Tiida has suffered no previous accident damage and the paintwork remains bright and shiny, apart from a couple of minor scratches on the rear bumper and one or two stone chips in the bonnet.

It's long out of warranty and has been serviced by a local mechanic over the past several years, rather than by the selling dealer. The regular driver has been a middle-aged woman, now an empty nester.

All up, the Tiida presents as an 'honest' machine with nothing to hide.

According to RedBook, the Tiida cost $24,240 when new. For private sale, the Tiida ranges between $6400 and $8000. As a trade-in the Tiida should fetch between $4400 and $6000. With its peers likely to have travelled anywhere from 90,000 to 150,000km, this particular Tiida is at the lower end of the spectrum. That is worth money to the owner of the Tiida, or at very least the convenience of being able to sell relatively quickly.

At carsales.com.au, this series of Tiida (C11 Series 3) starts from $5000 and runs to over $10,000. Prices rise in indirect proportion to the kilometres displayed in the odometer. And at the top end, there are fewer manuals listed.

Some vendors advertise in the expectation of some heavy haggling to arrive at a 'transaction' that will satisfy both the vendor and the buyer, but buyers usually won't even look at a car that appears to be too expensive before negotiation even commences.

Filter out the sedans, the manuals and the 2010/2012 models and the carsales.com.au listings are narrowed to just four. To limit the selection to 2011 models, type '2011' in the keyword search field. Check the four indicative models to pin down the ideal price for the subject car. One listing is for a manual hatch with 155,000km for an asking price of $5000. The other three are all asking at least $8799, the cheapest of the three having travelled 73,000km.

Ideally, 'our' Tiida could be advertised at $8490, leaving room for negotiation down to $8000, which remains at the top end of the bracket recommended by RedBook for a private sale.

Be objective about the car's worth. Be prepared to negotiate, but set a base number and don't go below that. Presentation is very important when selling. Take great photos in a nice setting – ask for help if you don't know how.

It's a cliché, but SELL the car, using words like 'one caring owner' or 'only driven to church on Sunday'. Always arrange a roadworthy certificate unless the vehicle is a basket case and you're advertising it 'for restoration or parts'.