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Are you interested in buying a new car? If so, you’re likely also wondering how much you can get if you sell or trade in your current vehicle.
Have you wondered, “How much is my car worth?”, “What will I get if I trade my car?”, or “What is a blue book value?”
If so, this guide is for you. Find out everything you need to know about Canadian book values here.
How Do Dealers and Banks Value Your Car?
If you’ve ever traded a car in before, you know how confusing the process can be.
It’s not always clear why you’re getting the amount you are for your vehicle. It sometimes feels like the dealer is just pulling a number out of thin air.
The more you know about how different dealerships and banks value your car, though, the easier it is to get a handle on the methodology.
Below are three of the most common tools Canadians can use to determine the trade-in value of their vehicle.
Canadian Black Book
Canadian Black Book is one of the most well-known services in the country for drivers who want to know the estimated value of their pre-owned vehicles (this is also known as the Canadian Black Book value).
Canadian Black Book uses a proprietary system with machine learning (ML) capabilities to calculate car values. They also make adjustments based on vehicle condition, mileage, and region.
Pros and Cons
As with any tool, there are pros and cons that come with using Canadian Black Book. Here are some of the most noteworthy benefits:
- Widely used: Canadian Black Book is one of the country's most popular used car valuation resources, so it is a good starting point for getting an idea of what your car is worth.
- Free: The basic valuation tool on the Canadian Black Book website is free to use.
- Considers multiple factors: Canadian Black Book takes into account a number of factors when valuing a car, including its make, model, year, mileage, trim level, and options.
- Provides a range of values: Canadian Black Book does not give you just one value for your car; it gives you a range of values, depending on the condition of your vehicle and the market in your area.
There are also some cons, including these:
- Potential for inaccuracy: The values provided by Canadian Black Book are not always accurate, and they may not reflect the actual selling price of your car.
- Does not consider all factors: Canadian Black Book does not consider all factors that could affect the value of your car, such as the car's history, its mechanical condition, and any repairs that have been made.
- Potential for bias: Canadian Black Book is a for-profit company, and its values may be biased in favour of dealerships.
- Subscription required for some features: Some of the more advanced features of Canadian Black Book, such as the ability to see detailed valuation reports, require a paid subscription.
Canadian Red Book
Canadian Red Book is another popular tool powered by CARFAX. It focuses less on individual sellers and more on dealerships, insurance companies, and vehicle appraisers. It is also expensive, especially for the average car seller, with a $249.99 price tag for an annual subscription.
Rather than paying to use Canadian Red Book, individual sellers tend to rely more on CARFAX’s free online valuation estimator to determine their car value in Canada.
This tool is similar to Canadian Black Book. It provides a trade-in estimate based on the car’s make, model, trim, and year, as well as the province in which the seller is located.
Pros and Cons
Canadian Red Book also comes with its own list of pros and cons. Here are some of the benefits this tool offers:
- Regularly updated: Canadian Red Book’s prices are regularly updated, making it easier for users to trust that they’re getting an accurate valuation for their vehicle.
- Easy to use: Many users praise the simplicity of the Canadian Red Book site and find that the platform is straightforward to navigate.
- Option to request a vehicle history report: CARFAX’s free online evaluation tool gives you the option to request a Vehicle History Report. This report provides more in-depth information that can help with determining a car’s value.
Meanwhile, these are some of the downsides to using Canadian Red Book:
- Expensive: To actually use Canadian Red Book (not the free CARFAX tool), you have to pay $249.99. That’s a pretty steep price, especially for an individual seller who just wants to find out what their vehicle is worth.
- Less relevant to individual sellers: Canadian Red Book itself is preferred among appraisers, financial institutions, government entities, and insurance companies. It’s not particularly relevant to individual sellers looking to trade in their vehicle for something new.
- The free tool offers limited information: The free CARFAX tool is a helpful alternative, especially for those on a budget, but it doesn’t provide a lot of detailed information on a car’s value.
Kelley Blue Book (KBB)
Here’s where things get a little more confusing.
Kelley Blue Book Canada was recently purchased by Autotrader.ca. Since their acquisition of Kelley Blue Book, consumers can no longer get a blue book value Canada for their vehicles.
What’s the alternative to blue book for Canadian car sellers? Now, Autotrader.ca redirects traffic to its Instant Cash Offer product, powered by Accutrade.
When you use this tool, you do get an estimated value for your vehicle. However, it's important to note that Autotrader.ca also sells leads created by their tool to dealerships, which may offer more or less than the initial instant cash offer.
Pros and Cons
Here are some unique benefits Autotrader.ca provides:
- Easy to use: Autotrader.ca’s website is generally considered very easy to use. It’s well-designed and has intuitive navigational features.
- Instant cash offers: Some users like the instant cash offer feature that Autotrader.ca provides, especially if they’re trying to sell their vehicle quickly.
Keep these cons in mind as well:
- Sells personal data: Autotrader.ca acts as a lead generation tool and sells user data to other dealerships. These dealerships also often make offers that aren’t based on the actual value of the vehicle.
- Limited customer support: Many users also complain about the lack of customer support provided by Autotrader.ca. If they list their vehicle and something goes wrong, it can be challenging to resolve the problem.
- Low offers: Users have also noted that the offers they get from Autotrader.ca are quite low -- typically lower than what they would get using a different tool.
Types of Book Values
Before you use a car value estimator in Canada, it’s critical that you also understand the different types of book values you might get. Here are three of the most important ones to be aware of:
Wholesale Value
Wholesale value refers to the price a dealer is willing to pay to acquire a vehicle (but typically not the price they sell it for). Several factors influence wholesale value, including the following:
- Make, Model, and Year: These heavily influence the baseline value due to varying depreciation rates and market demand.
- Mileage: Lower mileage generally translates to higher wholesale value.
- Condition: Vehicles in excellent condition with minimal wear and tear command higher prices.
- Location: Regional variations in demand and supply can affect the wholesale value.
Trade Value
Trade value describes the amount of money a dealership will offer for a used car when you trade it in towards the purchase of a new or used car from them.
The factors that determine a vehicle’s wholesale value also contribute to its trade value. However, there is also more room for negotiation. If you’re a good negotiator, you may be able to get a higher price.
Retail Value
Retail value refers to the asking price that a dealership or private seller advertises a used car for when selling it to the general public. It’s different from the wholesale or trade value and takes into account several factors, including market demand and dealer reputation (as well as contributors like make, model, mileage, etc.).
Get a Real Market Value for Your Car
When you ask the question, “What’s my car worth?” your answer depends on a lot of different things, including which tool you use to estimate its value.
At the end of the day, it’s important to remember that a book value (Red Book, Black Book, Blue Book, etc.) is just a number in a book (or a number generated by an algorithm). If you want to get a more accurate and helpful number, use Clutch’s Sell or Trade tool.
Your Clutch offer is unique because it reflects what we’re willing to pay right now. You get the most up-to-date information possible so you can make an informed decision about selling or trading your vehicle.
Are you ready to find out what your car is worth?
Use Sell to Clutch to get an instant, free, and accurate market value plus an offer for your vehicle. As a bonus, you won’t have to worry about your information being sold to other businesses.
