How Do We Price our Used Vehicles? Live Market Pricing
Pre-owned vehicles are difficult to compare. Truly no two are alike.
Miles, condition and vehicle history are just a few of the variables that differentiate a pre-owned vehicle… but that is before you even open the door and turn the key! Only then will you know how it actually runs, how it sounds, and how it feels to you.
What is Live Market Pricing?
Market Pricing is the technology of scanning thousands of car websites, and collecting the prices and information of every vehicle listed for sale. This program also collects the reports of local and national auto auctions, and online auctions. All of this information is compiled together to determine the actual real-time, real price of any vehicle.
Whereas, “book values” are generally updated monthly, Live Market Pricing is the real time value of your car using information collected just hours ago by people who are buying and selling your same car.
Why do I care?
Let’s say you want to sell your car. You search a car website and find the book value of your car to be $6000. Meanwhile, earlier today at a nearby auto auction, buyers are bidding up to $7500 on your exact car.
Which do you want? Would you be happy selling your car for the online “book value,” of $6000 you found on the web? Or would you want a price closer to today’s auction price of $7500?
The book value you received online is already outdated, and that could potentially cost you hundreds and thousands of dollars. A website has never seen your car, and a website isn’t going to buy your car. People buy cars and that’s what Live Market Pricing offers.
What about the Book Value?
You may be surprised to learn that most auto professionals do not rely on Bluebooks and Blackbooks to appraise cars and trucks today. “Book values” are simply guides that are only updated every month or every few months. They are primarily used by insurance companies for claims and by city and state agencies for tax estimates- as a pricing guide, a ballpark estimate.
With regard to actual car shopping, book values are very much outdated and inaccurate. Relying on a book value is like reading yesterday’s newspaper for today’s news.
Who uses Live Market Pricing?
Most reputable dealers nowadays use some sort of Live Market Pricing tool. If you are shopping for a pre-owned car or truck, make sure and ask if the vehicle is priced using Live Market Technology. If you are unsure, ask to see a report.
Here at Expressway, you can rest assured knowing each and every pre-owned vehicle has been priced to the Live Market to ensure you are paying today’s price, not last month’s price.