| r prices are elusive, despite numerous attempts | | | | Book and the NADA Official Used Car Guide. |
| to harness them. We’ve all heard of Retail, | | | | Importantly, even these books don’t settle |
| Private Party and Trade-in values. But do these | | | | the used car pricing debate. Here’s a |
| help in determining a vehicle’s real | | | | publisher’s note on the inside cover of the |
| value? When we turn to the web for prices, it | | | | latest NADA guide. |
| gets even more elusive. One web site places a | | | | It states: |
| retail value on a car at $18,000. Another puts it at | | | | The vehicle values in the N.A.D.A OFFICIAL USED |
| $21,000. What should we believe? | | | | CAR GUIDE,® are developed by |
| If sellers are looking to get the highest price for | | | | N.A.D.A’s editors based on many sources |
| the car they’re selling, and the buyer | | | | of information. These include reports of actual |
| wants to get the best deal possible, is there such | | | | transactions throughout each area for which the |
| thing as a fair used car price for both parties? | | | | guide is published. |
| The answer is yes, but both parties have to be | | | | The values in this guide assume a vehicle is clean. |
| on the same page. | | | | Appropriate deductions should be made for |
| We’ll call this page Fair Market Value. | | | | reconditioning costs incurred to put the vehicle in a |
| That being said, how do we interpret the market | | | | salable condition. An exceptionally clean vehicle or |
| to determine fair market value? Since most | | | | one that bears a guarantee, warranty, or |
| sellers and buyers are going to try to interpret | | | | manufacturer certification should bring a premium |
| the market to his or her advantage, let’s | | | | price. |
| even the playing field. | | | | Please read your guide carefully when determining |
| One of the most profound remarks I’ve | | | | the value of optional equipment. N.A.D.A.’s |
| heard to establish a better playing field for used | | | | editors believe that most optional equipment has |
| car pricing comes from industry expert and | | | | little or no value on older cars. This is especially |
| owner of Medway Imports, Barry Roth. He | | | | true of options that cost relatively little when new |
| states: | | | | and which deteriorate with age or use. Only the |
| To find market value, you need to take all the | | | | more popular vehicle options are listed in the guide. |
| pricing data you find for a particular vehicle and | | | | Unless otherwise stated, all vehicles are assumed |
| throw out the high and low prices. What’s | | | | to be equipped with automatic transmission, air |
| left in the middle is where you’ll find a fair | | | | conditioning, compact disc player (and/or AM/FM |
| market value. | | | | stereo cassette,) power steering, rear window |
| While this doesn’t address the used car | | | | defroster, and tilt steering wheel. For other |
| pricing problem entirely, it does remove the | | | | standard options, please review each |
| unrealistic numbers that many clutch to like the | | | | vehicle’s listing. |
| drowning to a life preserver. It moves folks to | | | | As you can see, even the most respected used |
| more reasonable prices according to the market. | | | | car pricing guide assumes quite a bit, |
| A lot of time is spent on popular web sites (for | | | | leaning heavily on the opinions of its editors |
| better or worse) to help determine used | | | | to determine appropriate deductions and |
| car pricing. But one should also follow and watch | | | | thus the ultimate value of a particular car. |
| the market to see what cars are being | | | | So where does this leave car buyers and car |
| advertised and sold forif they’re being | | | | sellers? After both parties throw out the high and |
| sold at all. | | | | low prices, it leaves them in the middle of the |
| Used car prices are also determined via auction | | | | market. |
| pricing, and industry used car guides such as Black | | | | |