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

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




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