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Good car value estimates will factor in as many as a dozen data points, including geographic and economic influences. Less precise tools base estimates only on make, model, year, and mileage. If you’re looking to sell your car, or you’re in the market for a used vehicle, it’s important to familiarize yourself with how automobile valuations work.

Here’s what you need to know to help you increase your chances of getting the best deal.

What to Know About Instant Dealer Trade-In Quotes

A number of dealerships and websites — such as Carvana, Truecar and Kelley Blue Book — offer instant cash or instant dealer trade-in quotes for your car. Often, all you have to do is share a few details, such as the vehicle identification number (VIN) or license plate number, and the company will come back to you with a cash offer for your vehicle.

Though a lot of companies make it sound like the process is as simple as that, know that there is likely an in-person review of your vehicle before anyone will cut you a check.

What Do Dealers Base Their Car Estimates On?

Instant quotes and valuations usually look at a few quick measures, such as year, make and model, and mileage. This information is enough to provide a rough estimate of value. However, other factors will also come into play. Here’s a closer look.

(Keep in mind, these terms apply only to cars you own outright; different calculations go into valuing a leased car.)

Make and Model

You can think of the make and model of a car as the brand and the specific product on offer. For example, Toyota is a make of vehicle, while the Corolla is a model. Some makes and models are more popular, which helps them hold their value longer. For example, a certain make and model might be known for fuel efficiency or to be safer or more reliable.

There may be numbers or letters next to a car’s make and model that further delineate different features or trim level. Generally speaking, the higher a vehicle’s trim level — the more features it has — the more valuable the car will be.

Style

A vehicle’s body style is its shape. It might be a minivan, hatchback, or pickup truck. Information about a vehicle style is contained in its make and model. And certain styles are more valuable than others. For example, trucks tend to retain their value better than other car styles. In other words, they depreciate more slowly.

Condition

Your vehicle’s condition means both cosmetic issues like scratches, dents, and wear to upholstery, and also the wear and tear on the engine and other components. The better condition a car is in and the fewer impending repairs needed, the more valuable it will be.

Mileage

Mileage is an important factor to consider because it serves as shorthand for potential wear and tear. The more a car has been driven, the more likely it needs repair or will soon. As a result, cars with smaller odometer readings are worth more.

Accident History

Accidents big and small will hurt the value of a vehicle. Even if a car was in a minor accident and shows no outward signs of damage, value can decrease. Buyers can look up vehicle history reports on sites such as Carfax and AutoCheck, using a car’s VIN.

Car Add-ons

When you buy a car new, you may be offered a series of add-ons, such as splash guards, alarm systems, and tinted windows. While these are often pricey to add to a new vehicle, that doesn’t always translate into increased value for used cars. In fact, according to some experts, once a car is two or three years old, add-ons have little effect on its value. Condition, mileage, and accident history often matter much more to the average used car buyer.

Number of Previous Owners

Used cars that have been owned by only one person may be seen as preferable because the vehicle will have had a consistent driving history and maintenance schedule. Multiple owners will not necessarily hurt the value of a car, but it may raise a red flag if there have been many owners in a short period of time.

Warranties

If a car is still under warranty and that warranty is transferable to a new buyer, it can add value.

Location

Geography can have an effect on car value. For example, the harsh winters and salted roads of the Northeast can take a toll, causing more wear and tear than a warm, dry climate.

Additionally, some types of vehicles may be in higher demand in certain areas, driving up price. For example, you might have an easier time selling a pickup truck in a suburban or rural area than in a big city.

Timeline

The less time an individual has to sell their vehicle, the more likely it is that they may have to accept an offer that’s less than the fair market value, especially in areas where there is not much demand.

The Economy

The value of used vehicles can fluctuate with changes in the economy. For example, a softer-than-expected labor market and a slowdown in economic growth in 2024 drove down the price of new and used vehicles. As of August 2024, the average price of used cars was $25,251 — down from $28,000 in 2022, according to CarEdge.

Rising interest rates can also make borrowing to buy a vehicle more expensive, putting downward pressure on demand, as can a struggling stock market or a recession.

Recommended: What Credit Score Is Needed to Buy a Car?

What Buyers Are Looking For

Ultimately, supply and demand drive the value of used vehicles. If buyers are looking for hybrid vehicles over gasoline-only cars, value for hybrids increases. If a certain color falls out of favor, a car may end up being worth less than an otherwise identical model in a different hue.

How to Prepare Your Car and Your Expectations

Prepare your car for the highest valuation by tackling as many repairs as you can, from fixing a broken brake light to replacing worn out brake pads. A budget planner app can help you figure out how much you have to spend on the fixes. Before an in-person valuation, you’ll also want to have your car washed and detailed to make sure it looks like it’s in the best condition possible.

Manage your expectations for values by doing a bit of research. If you’re looking to sell your car, check out valuation estimates from multiple sources, including Edmunds, Kelley Blue Book, and online dealers. You may even want to bring your car to a local dealership to see what price you might get there.

Similarly, if you’re looking to buy a new or used car, you can look up the value of various makes and models to help you understand whether the price you’re quoted is close to fair market value.

Recommended: Does Net Worth Include Home Equity?

The Takeaway

Good car value estimates will factor in as many as a dozen data points, including geographic and economic influences. Tracking your car’s value is especially important as you plan your budget and save up to buy a used or new car. The reason: Your current car’s value can have a big impact on what you can afford.

SoFi’s money tracker app now has an Auto Tracker feature that can give you a better understanding of your net worth and help you identify good times to sell.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What is the best way to determine the value of a car?

Find out the value of a car through trusted online resources such as Kelley Blue Book or Edmunds. Enter the VIN, license plate number, or the year, make, model, and mileage of your car or truck to get an idea of what it may be worth.

Which car value estimator is most accurate?

Kelley Blue Book and Edmunds are two of the most trusted car value estimators.

How do you know if a car deal is too good to be true?

Red flags that may suggest a car deal is too good to be true include a seller who is rushing you, a seller who won’t give you an accident report, signs of rust or disrepair, and a price that is much too low compared to fair market price.

Photo credit: iStock/Talaj

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Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Money affirmations are phrases you repeat aloud or write down to help promote positive thinking and good financial habits. Some people find these mantras to be a helpful tool in reducing money stress. That can be a good thing: In one 2024 survey, 88% of respondents said they were experiencing financial stress, with 65% noting that money was their single biggest source of worry.

Here, learn about what money affirmations are and how you might find them useful.

What Are Money Affirmations?

Affirmations about money are positive statements about personal finances, from the dollars that pass through your hands (or are growing in your savings account) daily to long-term goals. Some people value these as being a step towards visualizing and achieving financial success. Some points to know:

•   An affirmation can be as simple as “My finances will get better.” That can be a motivating and calming message if, say, you are a recent graduate who is struggling to find a job. Looking on the bright side in this way can encourage a positive attitude as you learn how to become financially independent.

•   Fans of finance affirmations say that repeating them can help you believe in and actualize (or manifest) them. By keeping such thoughts top of mind, you might avoid impulsive or unwise money decisions, such as splurging on a vacation when it isn’t in your budget. 

That said, others may not believe in money affirmations and question if there’s proof that this kind of positive thinking works. It’s a very personal decision whether to implement these affirmations or not.

Recommended: Personal Finance Basics for Beginners

What Is the Law of Attraction?

When exploring money affirmations (or any kind of affirmation, for that matter), you may hear the phrase “law of attraction” used. This principle says that by focusing on what you want to attract into your life, you can help yourself actually attain those goals. To put it another way, by envisioning what you want, you can guide your thoughts and behaviors to achieve that vs. dwelling on what you don’t have. 

For instance, if you want to retire by age 50, you would push away negative thoughts of “I’ll never have enough money to do that.” Instead, you might regularly conjure up the image of leaving your job to pursue your passions at age 50 and say, “I am on a path to save enough money to retire early.” That could perhaps help you pass up impulse buys and instead save money to help you realize your dream. That can be a valuable step on the path to financial freedom.

25 Money Affirmations

If you want to give affirmations about money a try, here are 25 examples you can try out (whether you say them aloud, internally, or write them down) to hopefully build a more positive approach to your finances.

1.      I control money; money doesn’t control me.

2.      I can become financially free.

3.      I have the power to be financially successful.

4.      My income will exceed my expenses.

5.      My hard work will bring in more money.

6.      I am worthy of making more money.

7.      I am a magnet for prosperity, and it flows toward me effortlessly.

8.      I deserve the money coming to me.

9.      I have more than enough money.

10.      My finances will get better.

11.      I accept financial success.

12.      I will achieve my financial goals.

13.      I deserve financial success and happiness.

14.      I will use the money I earn for good.

15.      I am wise with my money.

16.      I can make smart financial decisions.

17.      I have the ability to overcome reckless spending.

18.      I can make my dreams a reality.

19.      My future self will thank me for being wise with money.

20.      Having wealth is integral for life.

21.      I can achieve my financial goals and more.

22.      Debt will not stop me from reaching my financial goals.

23.      Saving money is a challenge I can accomplish.

24.      My investments will pay off.

Do Money Affirmations Actually Work?

There’s no guarantee that if you repeat money affirmations, your financial well-being will improve. No matter what you see online, read in books, or watch on YouTube, no one knows 100% whether money affirmations, even if repeated 100 times, will truly improve finances and build wealth. 

That said, proponents believe in them, so whether to use money affirmations is your call. One note in favor of money affirmations: They might help you focus on the positive and alleviate some money stress, which can be a good thing. 

One recent survey found that almost half of respondents (47%) said money negatively impacted their mental health, and that included causing stress. Reinforcing positive self-talk with money mantras might relieve worry and result in a calmer, steadier, more productive financial mindset. 

Money Affirmations vs Money Mantras

The phrases “money affirmations” and “money mantras” are typically used interchangeably. They are also sometimes called “abundance affirmations” or “wealth affirmations.” Occasionally, a money affirmation may be distinguished as being a sentence vs. a money mantra being just a phrase (like “less spending, more success”). 

Whatever you call them, money affirmations for financial abundance may be a way to boost your positivity when it comes to managing your cash. The words are meant to help you stay the course in reaching your financial goals.

Recommended: Tips for Overcoming Bad Financial Decisions

How to Choose and Write Your Money Affirmations

To choose and write your money affirmations, first identify negative beliefs about money that may be holding you back. Perhaps you see yourself as an impulse shopper, incapable of resisting sales or making frugal decisions. Maybe you’ll decide that “I am wise with my money” would be a good affirmation to try because it could counteract negative money self-talk.

You can also write a money mantra based on your personal challenges to state your goals as if it is already true. For example:

•   If your checking account is often lower than you’d like and you’re tightening your budget, the negative statement, “I will not order food delivery ever this year” may be discouraging and hard to live up to. 

•   A better affirmation might be a positive phrase, like, “I will budget well and spend my grocery money mindfully.” That way, when you do order the occasional pizza, you will likely have planned for it and can feel good. 

Your money mantra can help you focus on the positive.

How Do You Use Money Affirmations?

Those who believe in affirmations suggest using them in whichever way feels comfortable and meaningful. 

•   You might say them aloud or to yourself. 

•   You could jot them on a sticky note to post on your computer, mirror, fridge, and/or car dashboard. 

•   Some people like to put the words on their phone lock screen.

•   Others may prefer to write their phases (whether that’s “I am working to increase my bank account” or “Abundance is flowing my way”) in a notebook or journal.

Saying or writing your money affirmation daily can be a good practice, but it’s up to you to set the cadence that works best for you. The goal is to repeat the affirmations often enough to impact your outlook, enabling you to visualize financial security and move towards it.

Recommended: 7 Tips for Improving Your Financial Health

The Takeaway

Money affirmations, aka money mantras or abundance affirmations, are sayings that people can repeat to replace a negative money mindset with a positive one. They can express a financial goal or good habit. Some believe that saying or writing these words can help banish negative self-talk and instead create an optimistic outlook that can encourage good money management and financial wellness.

Another aspect of financial health is choosing the right banking partner. 

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How do I choose the best money affirmation for me?

Choosing the right money affirmation is a very personal decision. You may want to opt for (or write) a money affirmation that counteracts negative thoughts. So if you often tell yourself, “I will always be in debt,” a good money affirmation might be, “Every day, I am moving towards eliminating debt.” 

What is the affirmation number for money?

Each person can decide if they believe in affirmation numbers (or “lucky numbers”) for money and, if so, what it might be. Some think the number eight is associated with building wealth (say, in numerology), though it’s unlikely to find scientific proof of such a connection.

How often do I need to say my money affirmations?

Money (or wealth) affirmation fans say you should repeat the phrases as often as you need to so that you believe in them and they can help guide your financial habits. That could mean saying your money mantra daily perhaps. If you choose to write down your money mantras, the general advice is to post your affirmations where you will see and read them often. A couple of good spots might be on the refrigerator or mirror. 

When is a good time to repeat money affirmations?

An ideal time to repeat money affirmations can be when you’re feeling overwhelmed or stressed about your finances. For instance, if your credit card payment is late, rather than sinking back into negative self-talk, you could repeat your money mantra. Doing so might help you accept your current burden and refocus on your goals. Other people may find they like to repeat money mantras in the morning, to encourage a positive money mindset all day.

Photo credit: iStock/s-cphoto

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*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.