Car valuation is the process of estimating the market value of a motor vehicle. It is widely used for buying and selling, taxation, financing, leasing, and insurance. Because most vehicles lose value over time, car valuations are closely linked to depreciation, the measure of how a car's worth decreases as it ages and accumulates mileage.
The practice of car valuation developed in the early 20th century.
 | This section needs expansion. You can help by adding to it. (August 2025) |
Car valuations can be produced through several approaches used internationally:
Vehicle valuation reports usually include more than one category of price to reflect different contexts of sale or use:
All of these categories are influenced by depreciation. A new car typically loses 15–20% of its value in the first year and around 50% or more within three years. The rate of depreciation varies by brand, model, mileage, condition, and fuel type. Valuation providers build their reports around these depreciation curves to give accurate current and forecast prices.
In the United Kingdom, these categories are explained in detail as part of the broader concept of used-car valuation process . [4]
A range of specialist companies provides car Valuations. In the United Kingdom, long-established trade references include CAP HPI and Glass's Guide, CheckCarValue, [5] Auto Experts, [6] Parker's, [7] and Auto Trader. [8] In North America, the best-known providers are Kelley Blue Book (KBB), NADA Guides, and Edmunds; Canada uses Canadian Black Book; Australia uses RedBook; and in Europe values are supplied by the Eurotax system managed by Autovista Group.
Car values are influenced by:
| | This section needs expansion. You can help by adding to it. (August 2025) |
In the UK, car valuations are widely used by dealers, finance companies, and consumers. Industry-standard sources include CAP HPI [3] and Glass's Guide. Public-facing valuations are also available from consumer platforms such as Parker's and Auto Trader.
In the US, car valuations are commonly used in trade-in negotiations, leasing, and insurance. Major valuation references include Kelley Blue Book (KBB), which has been a trusted industry standard since 1926, and NADA Guides, widely used by dealerships and consumers for trade-in, financing, and insurance valuations. [9]