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Your car’s valuation does not include VAT, but that’s because it doesn’t need to.

For private sales, VAT doesn't apply. Private sellers aren't VAT-registered businesses, so the valuation you see is simply what the car's worth on the open market.

It's worth knowing that if you're part-exchanging at a dealership or selling to a VAT-registered trader, VAT becomes relevant to their side of the transaction. But it won't change the figure you receive. The price a dealer offers you is separate from whatever VAT they charge the next buyer when the car goes back on their forecourt.

Yes, your car's valuation plays a direct role in determining which insurance group it falls into, which in turn affects your premium. Insurers group cars from 1 to 50 based on a range of factors including value, repair costs and performance, so having an accurate, up-to-date valuation gives you a clear picture of where your car sits and what you should expect to pay.

It's also useful if you're taking out agreed value cover, where your insurer needs to know what the car is worth in the event of a total loss claim.

A private number plate can increase the value of your car if it hides the vehicle’s age (i.e. a dateless plate) or spells out something that’s broadly desirable, rather than your name. So if you have one of those and don’t want to keep it, make sure it’s in the listing!

It's also worth noting that the plate itself can appreciate in value independently of the car, so if you're not planning to keep it, get a valuation of the plate separately. It might be a better idea to put the plate on retention, then list it for sale separately. The market for your personalised plate is probably a lot different from the market for your vehicle.

Part-exchange value is what a dealership would offer you as a credit towards your next car purchase. It's generally the lowest of the three buyer-facing valuations because the dealer is taking the car off your hands on the spot and absorbing all the risk of reselling it. Convenient, but you're paying for that convenience in the price you accept.

A private car valuation guide price is the estimated price you could realistically achieve selling your car directly to another person without dealers or middlemen.

Private sales typically return the highest value of all the selling routes because you're cutting out the trade margin, but they do require more effort on your part: listing the car, fielding enquiries and handling the transaction yourself.

The guide price is exactly that: a guide. The final figure will depend on your car's condition, how you present it and how much demand there is for your specific make and model at the time of sale.

A trade-in car valuation guide price is the estimated price a professional car buyer (like a dealer or motor trader) would offer you for your car. We calculate it by looking at historical sales data from our private network of motor traders through our sister companies.

Keep in mind that trade offers are almost always lower than private sale prices because the buyer needs to factor in their margin, reconditioning costs and the time it takes to move the car on. The upside is speed and convenience vs a private sale.

Auction value is the estimated price your car would fetch at a trade auction (the kind used by dealers and fleet operators rather than the public). We calculate the estimated value based on historical auction results within our nationwide trader network.

Results vary quite a bit depending on the day, who's in the room and how much demand there is for your specific car. The guide price gives you a realistic floor to work from, which is useful context when weighing up your other selling options.

Modified cars have a different valuation because modifications narrow your buyer pool, and a smaller pool almost always means a lower price. Most buyers (and virtually all dealers) want a car in factory condition because it's easier to value and insure, and carries less uncertainty about what's been done to it.

There are exceptions, though. Tasteful upgrades from the original manufacturer (e.g. an upgraded stereo or performance-level components) occasionally appeal to the right buyer and hold their value reasonably well. But anything that affects the performance, emissions, noise level or road legality will make nearly all buyers less interested.

Also worth flagging: some mods void the manufacturer’s warranty and affect insurance eligibility. And if that’s the case, they’ll also fail the MOT test in most instances.