True Market Value of Used Cars at Auction Direct USA
True market value of used cars, True Market Value (or TMV) is one of the most efficient pricing tool that gives all potential car buyers a chance to score a good deal when buying a used vehicle. The TMV figure is based upon actual sales data and market forecast and offers a guide as to what other buyers in your area paid for a vehicle of the same model and make.
Knowledge of TMV is essential in helping buyers negotiate the price of a new car. It also comes in handy when calculating the trade-in value for a used vehicle. Additionally, all private-party buyers can easily use the True Market Value of Used Cars to set the price for their used cars.
True Market Value of Used Cars Buyer Benefits
Whether you’re buying a used vehicle from a private party or a dealership, it is important that you know a car’s cash value. This value depends upon multiple factors such as a vehicle’s age, condition, mileage, any optional equipment offered, the region in which it is sold, the trim level and several other factors.
Retail price is the price a dealership charges when selling a used car. It is considerably higher than the average market price as it often includes the dealership’s margin. In contrast, wholesale price or trade-in value is the price charged by private dealerships which is almost at par with the true value of the used car.
Whether you’re buying a used car from a dealership or a private party, determining the true value of the used car is critical. It allows you to determine the profit margin of the respective seller and helps you set limits for your purchasing power (e.g. if a seller is offering a used car at TMV + 20%, you can check out other sellers).
In some cases, used cars go to wholesale auctions. In such circumstances, the auction price is set as the purchase price for the vehicle. If you’re a dealer or a broker looking to buy cars for resale purposes, it is necessary for you to calculate the true value of the used car.
This helps you keep track of the value-addition, in the price of the vehicle, as it passes from one dealer or broker to another, till it reaches the eventual buyer. It also helps you in setting your own profit margin.
True Market Value of a Used Car is also an important appraisal tool. Most of the car dealerships, such as Auction Direct USA, offer an online calculator for determining the price of a used vehicle. Simply enter the car’s model and make, year, mileage and conditions, and the calculator gives you a figure as to its worth.
The same value also comes in handy when setting up a lease plan for the used car. The monthly lease payments are based upon the sales value of the car. The lower the true market value of used cars, the lower the monthly payments required. It’s easier for you to calculate the estimated lease payments and determine the best option for you, this way.
To learn more about the True Market Value of Used Cars and how they can benefit you, please feel free to contact us!