Trade vs Retail vs Private: Car Valuations Explained

"What is my car worth?" is a simple question with a complicated answer. A car's value entirely depends on who is buying it and who is selling it.

1. The Retail Value

Also known as the Forecourt Price. This is the highest valuation. It represents what a consumer should expect to pay when buying from a registered motor trader or dealership. It is higher because it legally must include consumer protections (under the Consumer Rights Act), a basic warranty, mechanical preparation, valeting, and the dealer's profit margin.

2. The Private Value

This is what you should expect to pay (or receive) when buying or selling directly with another private individual. It should be noticeably lower than the Retail Value because it operates on a "sold as seen" basis with far fewer legal protections. If the gearbox fails a week later in a private sale, you are generally on your own.

3. The Trade / Part-Exchange Value

This is the lowest valuation. It represents what a dealership will offer you to buy the car for cash or as a part-exchange against a newer vehicle. It is roughly equivalent to what the car would fetch at a wholesale dealer auction. The dealer needs to buy it at Trade Value so they can prepare it and sell it at Retail Value while making a profit.

Why mileage and condition matter

Valuations aren't just based on the year and model. A car with 120,000 miles is worth significantly less than an identical one with 40,000 miles. Similarly, a previous write-off marker will drastically reduce a car's value across all three categories.

When using a Live Valuation tool, always ensure you input the correct current mileage to get an accurate figure, rather than relying on a generic average.