How much is my car worth? How to value your car accurately in 2026
Before you sell your car, part-exchange it, or check whether your insurance is appropriate, you need to know what it is actually worth. Not what you paid for it, not what you think it should be worth, and not the figure your neighbour got for something vaguely similar. The actual current market value, based on the factors that used car buyers and dealers use to make purchasing decisions right now.
This guide explains how car valuations are calculated, what the main tools are, why the figures they produce vary, and what you can do to get the most accurate picture of your car’s value before approaching a dealer or private buyer.
What does ‘car value’ actually mean?
There are three distinct valuations that apply to any used car, and confusing them is one of the most common reasons sellers feel they have received an unfair offer.
Trade value is what a dealer will pay you for your car — either as a straight purchase or as a part-exchange credit. This is lower than retail value because the dealer needs to inspect the car, carry out any necessary preparation work, cover their overheads, and make a margin when they resell it.
Retail value is what a dealer would sell your car for on their forecourt or website, after it has been prepared and offered with a warranty. This is the figure you typically see on AutoTrader, Motors, and dealer listings. Retail value is always higher than trade value — usually by £1,000 to £3,000 depending on the car.
Private sale value sits between trade and retail. A private buyer does not need to make a dealer margin, but they also cannot offer the certainty, warranty, or convenience of a dealer transaction. Private sale typically achieves 5–15% more than trade value but requires more time, effort, and occasionally risk to achieve.
When you see a valuation from an online tool or a guide, it is worth checking which of these three values it is quoting. Most tools quote all three, but they are not always clearly labelled.
How car valuations are calculated: the data behind the number
Used car valuations in the UK are primarily driven by market data — what similar cars are actually selling for, in what condition, at what mileage, and in which part of the country. The two dominant professional valuation sources in the UK are CAP HPI and Glass’s Guide.
CAP HPI is the most widely used valuation source among UK car dealers, finance companies, and insurers. CAP (Car Analysis and Price) collects data from auction results, actual dealer transactions, and forecourt pricing across the UK market. It publishes monthly valuations — CAP Clean, CAP Average, and CAP Below Average — reflecting the car’s condition. CAP Clean is the valuation for a car in excellent condition with a full service history and average mileage. Most part-exchange offers you receive from a dealer will reference the CAP figure for your car’s mileage and condition, though dealers do not always disclose this explicitly.
Glass’s Guide is the other major professional valuation source, widely used by fleet operators, leasing companies, and insurers. Glass’s produces similar trade and retail valuations and publishes monthly updates. The difference between Glass’s and CAP figures for the same car is often small but sometimes meaningful, particularly for niche vehicles where auction data is thinner.
Both services also factor in residual value forecasts — projections of what a car will be worth in the future, which matter primarily for PCP finance pricing and reflect which cars hold their value well and which do not.
The main factors that affect your car’s value
Age and registration year is the largest single factor. Used car values depreciate over time, and the rate of depreciation is steepest in the first three years. The registration plate (72, 23, 73, 24, 74 and so on) signals age to buyers before they even check the date. As a rough guide, a car typically loses around 15–25% of its value in its first year, 40–50% by year three, and 60–70% by year five — though this varies substantially by make, model, and fuel type.
Mileage is the second most significant factor. The UK average annual mileage is approximately 7,000–8,000 miles. A car with significantly lower mileage than the average for its age will be worth more than the standard valuation; a car with significantly higher mileage will be worth less. A car 20,000 miles above average for its age can be worth £1,000–2,000 less than the guide price; a car 20,000 miles below average can be worth a similar amount more.
Service history has a material effect on value. A full service history — stamped at every recommended interval with main dealer or VAT-registered independent garage stamps — typically adds £500–1,500 to a car’s value depending on age and price point. No service history at all can reduce value by £1,000 or more on a mid-range car.
Condition is assessed across paintwork, bodywork, interior, glass, tyres, and mechanical condition. Professional valuations use a standardised scale: CAP Clean assumes no damage beyond minor wear; CAP Average reflects typical used car condition with minor cosmetic issues; CAP Below Average reflects significant cosmetic or mechanical issues. Dealers will assess your car against these categories and adjust their offer accordingly — a car with a large dent or cracked windscreen will be discounted by the estimated cost of repair plus a margin.
Colour affects value more than many sellers expect. Mainstream colours — white, black, grey, silver — achieve better prices than unusual or polarising colours because they appeal to a wider pool of buyers. Bright or niche colours can reduce a car’s value by £500–2,000 on some models. The impact varies significantly by car type.
Specification and optional extras can add value but rarely as much as sellers hope. Manufacturers’ optional extras typically retain 10–30% of their original cost in the used market. Desirable options — panoramic sunroof, heated seats, navigation, premium audio, upgraded alloys — do add real value. Check AutoTrader listings for comparable cars to see whether a particular specification is common or rare.
Number of previous owners still matters to many buyers and is disclosed on the V5C logbook. A car with one or two previous owners is viewed more favourably than one with five or six.
MOT status and expiry date affects short-term value. A car with 12 months’ MOT remaining is worth more than an equivalent car with three months remaining, because the buyer does not face an immediate MOT cost.
The current market: what 2026 conditions mean for your valuation
Used car values move with broader market conditions. In 2026, several factors are worth understanding before you value your car.
The conflict in the Middle East and the resulting rise in energy prices has changed fuel type demand significantly. Buyer demand for used electric vehicles has risen sharply since late February 2026, while demand for petrol and diesel has softened. If you are selling an EV or plug-in hybrid, the current market is more favourable than it was six months ago. If you are selling a diesel, there is currently more competing stock on the market, which puts modest downward pressure on achieved prices.
Used car values overall have been more stable in 2025–26 than in the exceptional 2021–22 period, when new car supply shortages drove used values to historically high levels. If you are comparing your car’s current value to what it might have achieved in 2022, expect a meaningfully different figure — that was a market anomaly rather than a normal baseline.
The Bank of England base rate is currently held at 3.75% with an uncertain direction, which makes buying conditions for many people slightly more cautious than in 2024. When finance costs are higher, buyers are more price-sensitive, which can put marginal downward pressure on values at higher price points.
How online valuation tools work and why they vary
Online valuation tools — from AutoTrader, WeBuyAnyCar, Motorway, Carwow, and others — provide instant estimates based on your registration number, mileage, and sometimes a brief condition assessment. They are a useful starting point but produce different figures for several reasons.
Most online tools use either CAP data, Glass’s data, or their own transaction data as the underlying source. Because each source updates at different times, the figures vary. Tools based on live listing data (what cars are currently advertised for) will differ from tools based on transaction data (what cars have actually sold for), because advertised prices are typically higher than achieved sale prices.
Instant online valuations also typically assume good condition. The figures are often revised downward when a physical inspection reveals actual condition. The most accurate online valuations come from tools that ask the most detailed questions about condition, specification, and service history.
What to do before getting your car valued
Gathering your service history documents is the single most impactful preparation step. If you have stamps in a physical booklet, find it. If the car has been serviced at a main dealer, check whether you can download records from the manufacturer’s service portal. Presenting complete records clearly makes a meaningful difference to the offer you receive.
Check the mileage on the MOT history. Every MOT certificate records the mileage at the time of the test. You can check the MOT history for any UK car free of charge on the GOV.UK website. This confirms your odometer reading is consistent with recorded data.
Be honest about condition. Walk around the car carefully: note any scratches, scuffs, dents, or chips. Check the interior for wear. Check tyre tread depth. If the car has a known mechanical issue, factor this in — dealers will find it during their own checks.
Run an HPI check yourself first. From around £10–20, this tells you whether there is outstanding finance on the car, whether it has been written off and categorised, and whether the mileage is consistent with recorded data. If there are issues you were not aware of, it is better to know before a dealer discovers them.
Look at what comparable cars are listed for on AutoTrader. Search for your make, model, year, approximate mileage, and colour to see what similar cars are currently advertised for by dealers. Your trade-in value will be lower than these retail listings, but understanding the retail frame helps you assess whether an offer is reasonable.
Get a free valuation on your car with Carsa
Carsa offers a free online car valuation for any UK-registered vehicle. Enter your registration, mileage, and a brief condition assessment and you will receive an instant estimate, with the option to book a physical appraisal at your nearest Carsa store for a firm offer. There is no obligation and no pressure to proceed.
If you are considering part-exchanging your current car when buying through Carsa, your valuation is applied directly against the price of the car you are purchasing. Carsa stocks a wide range of used vehicles priced on average £700 below market value, so part-exchanging combines a fair price on your car with a competitive price on your next one.
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