Facts about used car price myths and the value of web-based used cars

 

"My car is worth $ 25,800." "I looked up the price of a used car online, and my car is worth 20 grands." I hear quotes like this every day. .. I know ... 80% of car buyers use the internet to research car and used car prices. The internet is perfect for vehicle research! When it comes to car prices, the internet is the worst! It's terrible because the price doesn't reflect the reality of either the buyer or the seller. Car-related websites have caused more confusion than ever: "My car is worth $ 25,800." "I searched the internet for used car prices, and my car is 20 Grand. It's worth it. "I hear quotations like this every day. We hope that our values ​​are genuine for our customers. 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 etc2) Desirability: new model, special editions, just plain cool 3) Seasonality: plow trucks, convertibles, 4-wheel drive etc4) The Economy: factory incentives, gas prices, hybrids, SUVs5) Location: Beverly Hills versus the BronxNow, 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 summer convertible is worth one or more in Chicago in the winter. In northeastern June, plow trucks are significantly less valuable than in November. The economic crisis, exorbitant gasoline prices combined with manufacturer incentives can shift new and used car prices across the map. Location has a big impact on the price of used cars. A convertible in California is worth more than one in Canada. In summary, context is reduced to market value. Sites such as Edmonds, NADA, and Kelly have largely overlooked the mark and produced a huge amount of false information. To be fair, these are great research sites, but you can't have the final say on pricing. The statement that a vehicle is worth a certain amount of money based on data from the website does not take into account the above factors. This is a value due to a false alarm. These sites have created an aura of trust, even though values ​​are actually a myth. The market, for better or for worse, is a true indicator of vehicle value. What should I do? Buyers and sellers will be successful in chasing the market. Visit autotrader.com, cars.com, and / or * ebaymotors.com to see which vehicles are being promoted and sold. These sites have no final decision, but are much more accurate than sites that rely heavily on opinions and averages. Note: eBay used car prices are generally wholesale prices.