Deciphering what a car is worth

[wheelman]

I am curious how you guys go about figuring out what to pay for a used car? KBB nada Edmunds all seem to be way different a lot of the time. So what method do you use to decide what to pay for a vehicle?

 

[BigCahuna]

Any given car is worth a certain price. What increase's a car cost is the engine spec, and the trim level. Find a car you wan't . go to all those companies you listed and average out their prices. You will get as close as you ever will by doing that. The price difference is more noticeabl e with new cars. On used cars ,it's all smoke and mirrors, because a used car dealers want you to believe trim levels don't make a difference.,,

 

[GSCJR]

Subscribed. I recently came across some older vehicles with some extremely low mileage. One in particular is a 13 year old garage queen, never winter driven vehicle, that has not even accrued enough distance travelled for it's first service! I don't want to insult the seller but I have no idea where to start. Asking $14k seems absurd for a run of the mill vehicle of that age. Maybe @atikovi can help?

Great question @wheelman.

 

[supton]

KBB, NADA. CL and dealer lots. Get a gut feel for what's out there.

Then come on here and ask.

 

[GON]

KBB, NADA. CL and dealer lots. Get a gut feel for what's out there.

Then come on here and ask.

KBB can't be used if a car is being appraised as a new car dealer appraisal. New car dealer appraisal for a used car simply means the average retail asking price of a used car, nationwide, by new car dealers- not the price a dealer would sell the car for. The KBB tool is to show the consumer a high price, has nothing whatsoever to do with the value/ selling price of a car.

NADA is a tool used to support a financial institution justifying a loan to value on vehicle. NADA is a great tool to "overfinance" a used car vehicle purchase, as a bank can show an auditor it is lending at or under NADA numbers- not an accurate tool for a consumer to truly know what their car is worth- not even close.

I used Edmunds for years, and it was an outstanding tool for appraising a used car. Edmunds has changed, and it is no longer a useful tool IMHO.

I think the only tool that can be used to apprise a car is wholesale value. These are hard numbers, revised weekly, by actual sales transactions at an auction such as Mannheim. These numbers are hard to find, but can be found using the "black book".

Finally, used car prices move quickly, but resources like KBB and NADA do not move quickly in the numbers they publish. A huge hike in gas prices will result in a large drop in used wholesale SUV prices. Black book will capture this in seven days or less. NADA and KBB may not publish the drop in value of a SUV for months.

 

[mrsilv04]

I am curious how you guys go about figuring out what to pay for a used car?

I bought a 2018 GMC Sierra SLT Crew Cab 4x4 last May. I spent a few months getting a good feel for what these vehicles went for, concentrating on color, mileage in the range that I was interested in, with the equipment that I wanted, and in excellent condition. Yes, this takes some time and effort. Once you get to that point, then you can fairly quickly start recognizing which ones are priced accordingly, and then which ones are outliers... both priced too high and too low.

With a good feel for all of this, I was able to quickly spot a low outlier that appeared, and was priced below what would be expected. I was able to move quickly, inspect the truck personally, and get it purchased.

It was a one-owner, low mileage southern truck that had sat too long on a Honda dealer's lot, and had just been reduced in price by the dealership by several thousand dollars. They wanted it off the lot and gone. I gladly helped them out with their goal.

 

[AZjeff]

I used Edmunds for years, and it was an outstanding tool for appraising a used car. Edmunds has changed, and it is no longer a useful tool IMHO.

I think the only tool that can be used to apprise a car is wholesale value. These are hard numbers, revised weekly, by actual sales transactions at an auction such as Mannheim. These numbers are hard to find, but can be found using the "black book".

Agree with both. If you can get access to the MMV report, Manheim Market Value, you can see what is being paid for that vehicle at auction. This is what all vehicle sellers look at.

 

[supton]

I think the only tool that can be used to apprise a car is wholesale value. These are hard numbers, revised weekly, by actual sales transactions at an auction such as Mannheim. These numbers are hard to find, but can be found using the "black book".

Well, if it's hard to find then it's a bit hard to use... Wholesale pricing is interesting but that knowledge would only let me know what the markup at a dealer is. I'm not sure how I would use that info?

I haven't bought a used car in 6 years, so I'm not up to speed here.

 

[97prizm]

I am curious how you guys go about figuring out what to pay for a used car? KBB nada Edmunds all seem to be way different a lot of the time. So what method do you use to decide what to pay for a vehicle?

Most dealerships use NADA for the wholesale vs retail pricing.

 

[Owen Lucas]

I am curious how you guys go about figuring out what to pay for a used car? KBB nada Edmunds all seem to be way different a lot of the time. So what method do you use to decide what to pay for a vehicle?

Check out how much other similar vehicles are selling for in your market. Adjust for condition, trim, and mileage.

You can also check forums for the specific model as sometimes there is a price paid thread that might include used vehicle prices. At least you will be in the company of people more knowledgeable about your intended vehicle.

 

[ctrcbob]

A car is worth whatever someone is willing to pay for it. Simple as that!

 

[wheelman]

Our market is so scarce it's hard to compare with other vehicles for sale. There isn't many cars for sale. It's weird. I've never seen the market so dry around me.

 

[Owen Lucas]

Our market is so scarce it's hard to compare with other vehicles for sale. There isn't many cars for sale. It's weird. I've never seen the market so dry around me.

In that case, expand your search radius or look at pricing in adjacent states.