Excellent (Showroom condition)
Good (Minor wear, well maintained)
Fair (Visible wear, functional mechanicals)
Poor (Heavy wear, needs repair)
What is Fair Market Value (FMV) for a Vehicle?
Fair Market Value represents the price at which a vehicle would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts. Unlike "trade-in value," which is typically lower to allow for dealer profit, FMV reflects the actual private party transaction price.
Key Factors Influencing Your Car's Value
Several critical metrics determine how much your car is worth in today's market:
Depreciation Rate: Most new cars lose 15% to 20% of their value in the first year and roughly 10% to 15% annually thereafter.
Mileage Adjustment: The industry standard is approximately 12,000 to 15,000 miles per year. Excessive mileage decreases value, while exceptionally low mileage can provide a premium.
Condition Category: This is a subjective but vital metric. An "Excellent" rating is rare, reserved for vehicles that look brand new and have perfect service records. Most used cars fall into the "Good" or "Fair" categories.
Example Calculation
If you have a car that cost $40,000 new, is 4 years old, has 48,000 miles (standard usage), and is in "Good" condition:
Yearly Depreciation: The value drops roughly 45% over 4 years, bringing the base to ~$22,000.
Mileage: Since it matches the average (12k/year), no penalty is applied.
Condition: A "Good" condition multiplier (90%) is applied to the base, resulting in a Fair Market Value of approximately $19,800.
Why Use a Fair Market Value Calculator?
Whether you are preparing to list your car on a private marketplace, negotiating an insurance settlement after an accident, or budgeting for your next vehicle purchase, knowing the FMV prevents you from leaving money on the table or overpaying for a used asset.
function calculateCarFMV() {
var msrp = parseFloat(document.getElementById("carMSRP").value);
var age = parseFloat(document.getElementById("carAge").value);
var mileage = parseFloat(document.getElementById("carMileage").value);
var conditionMult = parseFloat(document.getElementById("carCondition").value);
var resultDiv = document.getElementById("fmvResult");
var finalValSpan = document.getElementById("finalFMV");
var breakdownSpan = document.getElementById("fmvBreakdown");
if (isNaN(msrp) || isNaN(age) || isNaN(mileage) || msrp 0) {
baseValue = msrp * 0.80; // First year drop
if (age > 1) {
baseValue = baseValue * Math.pow(0.88, (age – 1));
}
}
// 2. Mileage Adjustment
// Standard is 12,000 miles per year
var standardMileage = age * 12000;
var mileageDiff = mileage – standardMileage;
// Deduct or add 15 cents per mile deviation
var mileageAdjustment = mileageDiff * 0.15;
var adjustedValue = baseValue – mileageAdjustment;
// 3. Apply Condition Multiplier
var finalFMV = adjustedValue * conditionMult;
// 4. Ensure Value doesn't go below scrap value (roughly 5% of MSRP or $500)
var scrapValue = Math.max(msrp * 0.05, 500);
if (finalFMV 5000) {
statusText = "Note: Higher than average mileage has significantly impacted this valuation.";
} else if (mileageDiff < -5000) {
statusText = "Note: Low mileage has provided a value premium for this vehicle.";
} else {
statusText = "Note: Mileage is within standard operating ranges for this age.";
}
breakdownSpan.innerHTML = statusText + "Based on a starting MSRP of " + new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD' }).format(msrp) + " with " + (age) + " years of depreciation.";
resultDiv.style.display = "block";
resultDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}