A Word About Online Pricing Guides
Often, I am asked by customers, friends, family, and acquaintances to appraise their current vehicle or one they are considering purchasing. My answer usually surprises them, as it is usually higher or lower than the figures stated by the some of the popular online pricing guides.
They are further surprised that I, like most automobile professionals, rarely consult any online consumer pricing guides. When I am asked how I derived at the stated value, I inform them I use guides that are much more accurate and current for their local area: Market Reports from dealer only auctions.
These reports have a wealth of information which we gladly share at the end of an appraisal. Not only do the reports indicate the selling price of their vehicle in their local area, the reports also state how many units of each year, make, and model were sold. This helps to determine what models are in greater demand at any given time. Of course, the greater demand for a particular vehicle, the greater the price. The opposite is also true; the less of the demand for a make and model, the less it will command in the market.
The accuracy and consistency of online pricing guides varies widely. One reason is because each site uses a different method to determine values. Some use actual sales figures, and some use the advertised sales price, not the price the vehicle actually sold for. All the sites have a different starting point for each vehicle, including condition and depreciation rates. The size of the historical data used also varies.
If there is no consistency among these guides, what can consumers do to determine the market value of their vehicle? I suggest they seek out a car dealer, such as those with SmartCarOptions that references local, current market reports, as an appraisal starting point. Then, adjustments for mileage, mechanical and cosmetic condition can be factored. This process will yield an accurate value.
My last piece of advice is to make sure the appraisal is performed by a car dealer or professional buyer who actively attends auctions in his or her area each week. I compare the weekly, monthly, and seasonal fluctuations in the car market to the real estate and stock market. All three markets are always in a constant state of change. This is why it is critical that the person appraising your vehicle attend auctions each week, and not solely rely on the written market report.
On this site, I will be reporting on the current state of the automobile industry, focusing on trends in vehicle demand and pricing. It is our goal at SmartCarOptions that our customers and visitors find our upcoming Market Reports informative and useful.
Often, I am asked by customers, friends, family, and acquaintances to appraise their current vehicle or one they are considering purchasing. My answer usually surprises them, as it is usually higher or lower than the figures stated by the some of the popular online pricing guides.
They are further surprised that I, like most automobile professionals, rarely consult any online consumer pricing guides. When I am asked how I derived at the stated value, I inform them I use guides that are much more accurate and current for their local area: Market Reports from dealer only auctions.
These reports have a wealth of information which we gladly share at the end of an appraisal. Not only do the reports indicate the selling price of their vehicle in their local area, the reports also state how many units of each year, make, and model were sold. This helps to determine what models are in greater demand at any given time. Of course, the greater demand for a particular vehicle, the greater the price. The opposite is also true; the less of the demand for a make and model, the less it will command in the market.
The accuracy and consistency of online pricing guides varies widely. One reason is because each site uses a different method to determine values. Some use actual sales figures, and some use the advertised sales price, not the price the vehicle actually sold for. All the sites have a different starting point for each vehicle, including condition and depreciation rates. The size of the historical data used also varies.
If there is no consistency among these guides, what can consumers do to determine the market value of their vehicle? I suggest they seek out a car dealer, such as those with SmartCarOptions that references local, current market reports, as an appraisal starting point. Then, adjustments for mileage, mechanical and cosmetic condition can be factored. This process will yield an accurate value.
My last piece of advice is to make sure the appraisal is performed by a car dealer or professional buyer who actively attends auctions in his or her area each week. I compare the weekly, monthly, and seasonal fluctuations in the car market to the real estate and stock market. All three markets are always in a constant state of change. This is why it is critical that the person appraising your vehicle attend auctions each week, and not solely rely on the written market report.
On this site, I will be reporting on the current state of the automobile industry, focusing on trends in vehicle demand and pricing. It is our goal at SmartCarOptions that our customers and visitors find our upcoming Market Reports informative and useful.