Used Car Pricing - Asking vs Selling Price

[KrisZ]

It's hard to set any rules of thumb in regards to pricing because, unlike new car buying, each used car is different in its own way, differently maintained, driven, modified, repaired etc. Then there is personal preference. Willingness to make some sacrifices in how the vehicle is equipped, its color etc. Some people are dead set on getting their "dream" used car exactly how they want it and they usually have to pay on the high side to get it.

My personal opinion on buying used cars is set your budget and stick to it or below it, which should include a good amount for unexpected repairs or if buying "as is" to put the car on the road, doesn't matter if the seller claims it's 100% ready to just drive off.
So, if my budget was $5k, I would comfortably buy something close to $4k.

And finally, you have to get your feet wet and buy. Reading about it is great, but nothing beats personal experience. If you know a good mechanic, bring the car to their shop and get it inspected and possibly get his opinion on the vehicle. With time and experience it becomes easier to assess the condition and value, although as with anything, there is always a risk of loosing on the deal.

 

[exranger06]

I was planning to sell my 04 CR-V in the spring, as it was a rusty pile of junk and I continued to have problems with it. I was going to ask $3,600 for it. Change of plans: it got totaled last month. Insurance offered me $4,400 plus sales tax for it. Sold!

They gave me a bunch of paperwork showing me how they arrived at that number. They included listings of other CR-Vs for sale locally, as well as the NADA price guide, and I think one other price guide. I think they took the average value or something; I don't remember as I didn't look at it closely. I didn't really care; their offer was more than fair and I wasn't about to get greedy and try to milk more out of them. I feel much better not having to deal with the grief and heartache that car caused me anymore, I got more money than I thought I could ever get for it, and I didn't have to deal with Craigslist tire-kickers. Win-win-win for me.

 

[spk2000]

Used car pricing varies quite a bit. Go to some auctions and see how those are priced. Some of it depends on how bad you have to have that car too. Most of the time I am fairly flexible and can find multiple cars that will fit my need. Gives me more leverage that way. Won't deal on that one well what about that one no then go somewhere else. Usually I am window shopping all of the time for cars to know going prices of comparables and I buy when I find the right deal.

 

[weebl]

Thanks all, yes I am in Canada.

I've looked at a number of Canada specific vehicle price publications. Particularly, Black Book, Gold Book, VRMCanada. What I have found is that Black Book has come up with a valuation close to what the insurer has offered initially. Gold Book is somewhat lower, and VRMCanada ridiculously low.

Both what the insurer is offering, along with what the valuation guides are saying are also not in line with what I am seeing on used car websites.

The adjuster I spoke to, while exploring the idea of countering their offer, had rationale why the ads were no good for valuation. One point in particular, is that asking is always more than selling. I want to validate my calculations factoring that argument in. For now, I am using 10% lower on average.

Mine is also a high miler, and I was able to get from them what they considered average mileage on this vehicle for this model year, and how much they reduced it by. From this, I was able to calculate a per km adjustment from what my vehicle odometer reading is.

I also figured out, based on original MSRP, the % difference between all trim levels offered, so that based on the vehicle in the ad, I can adjust up or down accordingly. ANother argument they had against the ads, saying they don't look at other trim levels.

I am also being selective on the vehicles I'm using as comparators. No low priced poor condition vehicles, only those at least in some way comparable to mine. So far, I have found 3 that fit the bill, and even then, 2 are from prior years. I haven't even factored in that they should be worth less than my 2006.

My argument is looking strong based on the analysis for a bit more.

This will help cushion the blow in actually finding a replacement vehicle I will be happy with (if I do decide to actually replace it).