| Eighty percent of car buyers are using
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| | in November in the northeast.
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| the Internet to research cars and used
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| | Economic recessions, exorbitant gas
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| car prices. For vehicle research, the
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| | prices, combined with manufacturer
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| Internet's great! For vehicle prices, the
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| | incentives can shift new and used car
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| Internet sucks! It sucks because the
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| | prices all over the map.
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| prices do not reflect reality for the
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| | Location has a major effect on used car
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| buyer or the seller. Web sites that place
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| | prices. A convertible in California is
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| values on vehicles have created more
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| | worth more than one located in Canada.
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| confusion than ever.
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| | To summarize, context funnels down to
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| "My car's worth $25,800." "I looked up
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| | market value. Web sites such as Edmunds,
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| used car prices on the web and my
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| | NADA, and Kelley have drastically missed
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| vehicle's worth twenty grand." I hear
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| | this mark, creating a host
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| quotes like these everyday. I wish, for
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| | misinformation. To be fair, these are
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| the customer's sake, that the values are
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| | great research sites, but they can not be
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| real. By "real" I mean a viable number
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| | the final say on price.
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| according to market value.
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| | Stating that a vehicle is worth a certain
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| As hard as it is to accept, even for me
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| | amount of money based on a web site's
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| as a dealer, what we think a car is
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| | data does not take the above factors into
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| worth, and what it's actually worth
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| | account. It's a value based on
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| according to "market value" is often
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| | misinformation.
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| drastically different.
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| | These web sites have created an aura of
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| To find a vehicle's value the context
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| | trust when in actuality, the values are
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| must first be discussed. What's context?
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| | mythical. The market is the real
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| Context includes, but is not limited to:
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| | indicator of vehicle worth-for better or
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| 1) Vehicle condition: mileage,
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| | worse.
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| maintenance, 1-owner...etc
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| | What should one do? Buyers and sellers
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| 2) Desirability: new model, special
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| | would be wise to follow the market. Check
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| editions, just plain cool...
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| | out autotrader.com, cars.com, and/or and
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| 3) Seasonality: plow trucks,
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| | watch what vehicles are being advertised
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| convertibles, 4-wheel drive...etc
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| | and sold for. While these sites are not
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| 4) The Economy: factory incentives, gas
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| | the final word either, they're much more
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| prices, hybrids, SUVs
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| | accurate than web sites leaning heavily
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| 5) Location: Beverly Hills versus the
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| | on opinion and averages.
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| Bronx
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| | Note: eBay used car pricing is generally
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| Now, each of the above context variables
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| | wholesale. In other words, it would not
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| could easily have several sub categories.
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| | be accurate to compare a wholesale-priced
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| For example...
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| | eBay car (which may need a significant
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| Vehicle condition is extremely relative.
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| | amount of reconditioning) to a
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| One person may think there vehicle is
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| | retail-priced vehicle in showroom and/or
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| perfect, someone else states it needs
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| | perfect working condition.
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| $1000 worth of work.
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| | In the end, and this come straight from
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| Desirability is also relative. A bunch of
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| | industry expert, Barry Roth, "Take the
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| very cool bells and whistles may not add
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| | highest price and the lowest price you
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| any value, or it may add $1000's.
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| | find on the Internet and throw them out.
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| Seasonality is relative. A convertible in
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| | The remaining numbers in the middle is
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| the summer has more value than one during
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| | where one should wade. But don't forget
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| a Chicago winter. A plow truck in June
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| | value.
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| will have significantly less value than
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