Used Car Prices Myths And Facts About Web Based Used Car Values

Used Car Prices Myths And Facts About Web Based Used Car Values



Eighty percent of​ car buyers are using the​ Internet to​ research cars and​ used car prices. for​ vehicle research, the​ Internet’s great! for​ vehicle prices, the​ Internet sucks! it​ sucks because the​ prices do not reflect reality for​ the​ buyer or​ the​ seller. Web sites that place values on vehicles have created more confusion than ever.

“My car’s worth $25,800.” “I looked up used car prices on the​ web and​ my vehicle’s worth twenty grand.” I hear quotes like these everyday. I wish, for​ the​ customer’s sake, that the​ values are real. By “real” I mean a​ viable number according to​ market value.

As hard as​ it​ is​ to​ accept, even for​ me as​ a​ dealer, what we think a​ car is​ worth, and​ what it’s actually worth according to​ “market value” is​ often drastically different.

To find a​ vehicle’s value the​ context must first be discussed. What’s context?

Context includes, but is​ not limited to:

1) Vehicle condition: mileage, maintenance, 1-owner…etc
2) Desirability: new model, special editions, just plain cool…
3) Seasonality: plow trucks, convertibles, 4-wheel drive…etc
4) the​ Economy: factory incentives, gas prices, hybrids, SUVs
5) Location: Beverly Hills versus the​ Bronx

Now, each of​ the​ above context variables could easily have several sub categories. for​ example…

Vehicle condition is​ extremely relative. One person may think there vehicle is​ perfect, someone else states it​ needs $1000 worth of​ work.

Desirability is​ also relative. a​ bunch of​ very cool bells and​ whistles may not add any value, or​ it​ may add $1000’s.

Seasonality is​ relative. a​ convertible in​ the​ summer has more value than one during a​ Chicago winter. a​ plow truck in​ June will have significantly less value than in​ November in​ the​ northeast.

Economic recessions, exorbitant gas prices, combined with manufacturer incentives can shift new and​ used car prices all over the​ map.

Location has a​ major effect on used car prices. a​ convertible in​ California is​ worth more than one located in​ Canada.

To summarize, context funnels down to​ market value. Web sites such as​ Edmunds, NADA, and​ Kelley have drastically missed this mark, creating a​ host misinformation. to​ be fair, these are great research sites, but they can not be the​ final say on price.

Stating that a​ vehicle is​ worth a​ certain amount of​ money based on a​ web site’s data does not take the​ above factors into account. It’s a​ value based on misinformation.

These web sites have created an​ aura of​ trust when in​ actuality, the​ values are mythical. the​ market is​ the​ real indicator of​ vehicle worth—for better or​ worse.

What should one do? Buyers and​ sellers would be wise to​ follow the​ market. Check out autotrader.com, cars.com, and/or *ebaymotors.com and​ watch what vehicles are being advertised and​ sold for. While these sites are not the​ final word either, they’re much more accurate than web sites leaning heavily on opinion and​ averages.

Note: eBay used car pricing is​ generally wholesale. in​ other words, it​ would not be accurate to​ compare a​ wholesale-priced eBay car (which may need a​ significant amount of​ reconditioning) to​ a​ retail-priced vehicle in​ showroom and/or perfect working condition.

In the​ end, and​ this come straight from industry expert, Barry Roth, “Take the​ highest price and​ the​ lowest price you find on the​ Internet and​ throw them out. the​ remaining numbers in​ the​ middle is​ where one should wade. But don’t forget value. Price is​ one thing—value is​ the​ real key to​ a​ great car”

For more on used car values visit www.medwayimports.com/




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