The Internet has been touted as the most resource for the used car buyer. Prospective buyers can find trade-in, private party, and retail values in a heartbeat. The request to consider, however, is what Internet source is right? The three major sites: Nada, Edmunds, and Kelly Blue Book are clamoring to be the Trusted Authority on used car values. Yet price discrepancies are frequently in the 00's from site to site. Which web site, if any, is the most correct source for the used car buyer?
To clarify the discrepancies, here's an everyday example: Nada may retail a 2003 Saab 9-5 Linear at ,996, Kelly Blue Book prices it at ,456, and Edmunds prices it at ,800. These are all retail values, assuming exquisite or clean condition. ,456 minus ,800 is a ,656 difference. That's a huge price unlikeness in the highly competitive used car market. This is not an consulation to protect used car dealers. Rather, this is a warning for the used car buyer when he or she is surfing the web for used car prices.
Car
The retail values placed on many vehicles by these web sites can have even larger price differences - some as high as 00 to 00 dollars. These weighty price fluctuations can leave a used car buyer spending 00's extra, depending on which guide he or she used. Moreover, private party and trade-in sale prices do not accurately inventory for car condition.
Vehicle condition is a considerable variable. An owner might think his trade-in is in striking condition and thus worth X, based on his Internet research. An expert may know it needs 00's in repairs and reconditioning costs.
The retort to "whose prices are right" is that none of the big three web sites reflect used car prices accurately. Most often, the prices are too high on the retail side, questionable on the trade-in side, and confusing on the private side.
So what or who is the real authority? The retort is the Market! The shop (i.e., the folks grinding it out everyday in the used car shop place - sellers and buyers) reflect true shop value. Web sites are guides only. Thus the used car prices from these sources need to be measured against the reality of the market.
Here's a scenario to clarify the significance the shop plays on used car values. In the Northeast, the banks rely on Nada, used car dealers prefer to use Kelly Blue Book, and used car buyers are turning more and more to Edmunds. Now the dealer of course wants to use the inflated Kelly Blue Book value. The buyer wants an unrealistic Edmunds price, and the bank wants to use an under-valued Nada price. In other words, the three traditional population in the car buying process - the buyer, the seller, and the lender, are all on separate pages. Each player wants the most advantageous price based on the part he or she is playing. The shop is the only element that evens the playing field. The point here is to demonstrate that the shop is the true source to settle a Real and Fair used car value.
In order to get a fair price, agreeing to the market, a used car buyer should aim for the middle. Avoid the top prices and be realistic and flexible about the lowest. Stay somewhere in the middle to get a fair deal.
If you want a great deal, effect the shop closely. If buying from a retailer, eBay and auction prices don't count, as these are wholesale venues. Check out Cars.com, AutoTrader.com, and some of the other Used Car Sources. See what the car you want (including miles, tool and accessories) is being advertised for. Again, shoot for the middle!
Use the favorite Internet resources, but don't effect these Guides blindly. You may as a matter of fact pay significantly more than shop value.
Having said all this, this doesn't mean that used car dealers are going to stop trying to low ball trade-in offers. And of course every dealer wants to sell its vehicles for a maximum. But remember, the same goes for car owners, but in reverse. They want the top price for a trade and the bottom retail price on a vehicle.
When using Internet sources to settle a used car value, be sure to enter the correct information. This may sound elementary, but selection packages, models, miles, color, equipment, engine, transmission, gear ratios...etc, can be confusing. Yet these are important variables that will sway prices dramatically. In short, the wrong data skews the numbers.
Finally, what as a matter of fact needs to be highlighted with Nada, Edmunds, and Kelly, as well as other Internet sources, is that they are Guides. They are exquisite resources for car information, but weak resources for prices. This is not to bad mouth any of these sites - they are great beginning points. Remember, however, that these guides may or may not be in the car buyer's favor. Fair used cars prices are dictated by the market. Yes, do your investigate on the Net, but don't cling to it. Use the Internet only to find the used car market's middle ground.
Nada Used Car Prices, Edmunds Used Car Prices, and Kelly Blue Book Used Car Prices - Who's Right?