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Additional resources for Automobile Magazine (June 2012)
Consequently, a dealer will typically offer you $1,000 under the tradein (wholesale) value for your car as a trade-in allowance for the new car you are buying. One way to look at it is that the dealer is charging you $1,000 to sell your used car at auction for you. 16 EBAY MOTORS THE SMART WAY In addition, the dealer will calculate the trade-in value using data for vehicles in fair condition, no matter what condition the vehicle is in. This is close to the lowest possible valuation as you will learn in Chapter 4.
After all, his customers like Acuras. Will he offer it for the retail price published in the data? Probably not. He will probably offer it for more. In any case, he will make sure the car is in the best condition possible with only a reasonable amount of money spent on reconditioning, and he will use the price data for vehicles in excellent condition as the basis for setting the price. Now, the published retail price is an average price derived from the used car sales data. That means some vehicles sell above that price and some sell under that price.
In addition, it helps you identify situations that are to your advantage or disadvantage. After all, not all vehicles are sold at the average price. If you want to beat the average, you have to be able to spot a good deal. 3 Owning a Used Vehicle Before you can make a wise decision as to what vehicle you buy, you need to evaluate the overall picture. That includes a variety of considerations, most of which we can’t help you with. However, we can help you evaluate the financial aspects of owning your next vehicle.
Automobile Magazine (June 2012)