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How dealers actually value your car

Valuation · 7 min read · Updated 20 August 2026

Dealer offers are not arbitrary and they are not a lowball reflex. They are a calculation that runs backwards from a retail price, and once you can see the arithmetic, the number stops feeling personal.

Updated 20 August 2026

The calculation, in order

A buyer starts at the end and works back:

  1. What will this retail for? Not the asking prices online, but what comparable cars have actually sold for in their state, recently.
  2. What does it cost to make it retail ready? Tyres, brakes, a service, paint correction, panel work, detailing, statutory warranty exposure.
  3. How long will it sit? Every day in stock costs floor plan interest, yard space and depreciation. A car that turns in 14 days is worth more to them than one that takes 90.
  4. What margin does the business need? This is smaller than most sellers assume, and it has to absorb the ones that go wrong.

What is left after those four steps is the offer. Every element of your car's condition sits in step two or step three.

Why two dealers price the same car differently

This surprises sellers more than anything else, and it is the entire reason competition works.

  • Different retail channels. A franchise dealer with a certified used programme can retail a late model example higher than an independent lot, so they can pay more.
  • Different current stock. A dealer who already has four of your model on the lot does not want a fifth. One who just sold out will pay to replace it.
  • Different reconditioning costs. A dealer with an in house workshop absorbs a set of tyres far more cheaply than one who subcontracts.
  • Different states. Demand for four wheel drives, convertibles and hybrids varies significantly around the country.
  • Different appetite this week. Stock levels, cash position and how the month is tracking all move the number.

None of these are things you can see from the outside, which is why asking one dealer gives you almost no information and asking three gives you a market.

What you control

You cannot change what your model retails for. You can change how much risk the buyer is pricing in:

  • Provide the service history. Undocumented maintenance is priced as though it did not happen.
  • Disclose everything. A described dent is a line item. An undescribed dent is a renegotiation and a reason to doubt the rest of your description.
  • Include both keys and the manual. Genuinely worth money on modern cars.
  • Be accurate on kilometres. Guessing low does not help you, it just moves the correction to inspection day.
  • Mention factory options. Sunroof, tech packs, tow bar, upgraded audio and genuine accessories are all value the buyer may otherwise miss.

What a wholesale range really means

When a buyer quotes a range rather than a figure, they are pricing the uncertainty in your description. The bottom of the range is what they will pay if the car presents worse than described, the top is if it presents as stated. A precise, honest submission with photos narrows that range and usually lifts the bottom of it.

Why the offer can change at inspection

Every dealer offer in Australia is subject to physical inspection, and that is not a loophole, it is how the trade works. What is not normal is a large unexplained reduction on a car that matched its description. If that happens, you are entitled to decline and take the next offer instead, which is exactly why having more than one matters.

Find out what your car is worth

Five written offers from licensed dealers, normally inside 60 minutes during business hours. Free, and no obligation to accept any of them.

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