How can you determine the fair car market value? Well, over the past two years, used car prices have plummeted during the pandemic shutdown, only going up a record 40% in 2021. Now, there are strong signals of a price bubble.
With such volatile changes in car prices, it has never been harder to know the true fair market value of a vehicle.
There are many ways to answer this question! In 2022, Wapcar will have tools at our disposal that simply didn’t exist ten years ago. Here’s how you can take advantage of online auto dealers and car reviews to find out what your own car is really worth, and how to land a good deal at the dealership.
Previously, it was impossible to know the true fair value of a car. Kelly Blue Book is just a book. Books that aren’t updated weekly like used car prices and sites like KBB are really just for gathering leads for dealers; Their assessments are not a true indication of “fair market value”. The way we share information has changed, as has the way we buy and sell cars.
Online auto dealers now account for 30% of new car sales in the US, and the used car market is catching up. Pandemic-induced changes in consumer preferences have led to a proliferation of online auto dealers eager (sometimes hysterical) to sell you a car via live messaging. line. With sites like Carvana, Vroom, Cargurus, Driveway and others, you can see how the car dealer will pay for the car in real-time. This is VERY valuable information for car owners, whether you intend to sell or not. More on that is below.
Follow the 10% Rule
If you’re buying a used car, the 10% rule is a great way to see if you’re paying a fair price. We all know auto dealers make money when they sell cars, but how much do dealers make? In 2022, the average gross profit per vehicle is $5,138. This is double what it was five years ago.
With dealer profits constantly increasing, how can you ensure that they don’t overpay for a used car? We like to think of the 10% rule. If a dealer has a used car for sale and you plan to buy it, the price should not be 10% higher than what online auto dealers will pay for that vehicle. We consider this a fair price. If it’s more, try to negotiate.
How can you apply the 10% rule? New and used vehicle listings provide VIN, mileage, trim options, and vehicle condition. Using this information, you can go through the tedious process of requesting a quote from Carvana, Vroom and CarGurus. Better yet, get all quotes in one place with a rating. Once you have an estimate or offer, simply calculate if the value is within 10% of the dealer’s list price. If so, you are looking for a reasonable price. If not, it’s time to look elsewhere or put on your bargaining hat.
See Your Vehicle’s Value In Real Time
We’ve created a new type of online car valuation tool with the goal of providing consumers with a realistic, regularly updated, and no-frills way of pricing. Members of the community have told us this many times; drivers just want real data with no gimmicks or traps.
How does it work? We take the information you share about your vehicle or the vehicle you buy and bring you real offers from online car buyers. Using your VIN or license plate number, location and answers to simple questions about your vehicle’s condition, you’ll get more deals in less time than brewing a coffee machine.
Anyone who has been in the car business knows that dealers offer low-cost deals so they can turn around and sell your car for a higher price. We have leveraged decades of dealership experience to provide consumers with a way to better understand the value of their vehicle and how its value changes over time.