Used Car Prices: Myths and Facts
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! 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.” By “real” I mean a viable number according to market value.
To find a vehicle’s value the context must first be discussed. What’s context ?
Vehicle condition: mileage, maintenance, 1-owner…etc
Seasonality: plow trucks, convertibles, 4-wheel drive…etc
The Economy: dealer and factory incentives, gas prices, hybrids, SUVs
Vehicle condition is extremely relative. One person may think there vehicle is perfect, someone else states it needs $1000 worth of work.
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. 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.
Note: eBay used car pricing is generally wholesale. Price is one thing-value is the real key to a great car”
Save on Your Next Used Car Purchase
Car expenses that continue after the initial purchase like gas and maintenance make a new car purchase even more expensive. For those that cannot afford the total costs involved with the purchase of a new car, they can settle on the used car values that can significantly reduce initial expensive costs. According to consumer reports, a new car depreciates in value once it leaves the car dealer lot. It doesn’t matter if you put 1 extra mile on the car, the depreciation amount can be as high as 20% annually. Considering this, you can see that it might be easy for someone to find used car values in a fairly new car at almost half the price of what the car would cost new.
Armed with the complete knowledge about a certain vehicle of interest enables you to get the right car for the right price from most any dealer. Obviously, you can buy a used car from a dealer or from a private individual.
Tips for used car purchases
- Most cars will have a maintenance record of some kind. There are many car dealers in the car market today. With so many dealers used car values become easier to find. If you can’t find your car right away, ask a reputable dealer to try and find one for you.
- You should check if the dealer or individual has a good reputation or is able to provide adequate records of maintenance, accidents, etc.
- Make sure you thoroughly test drive the vehicle and also check to see if all the accessories work. Turn all the switches on and off to make sure all the electrical features work.
Researching Used Car Prices on the Internet
There are tons of car and used car websites where you can research on car prices on the Internet. All Auto Car websites are, essentially, websites that lets car sellers and dealers post their cars and used cars for sale together with the car prices that they are willing to sell the car for. The car prices consist of the price of the car, the commission of the seller and the commission due to the listing website. Don’t forget to compare the car prices with the local car dealer and used-car dealer too, just for good measure. You’ll be surprised, sometimes, the local car dealer may have better car prices for you. Comparing car prices is important. When researching car prices, the more important thing to ensure is the condition of the car.