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