Sports cars are most realistically priced
You know the value of your motors, finds survey
People trying to sell their cars privately are asking more than double the vehicles real market value according to research from used car database, Cardata, although sports car sellers are way more realistic than most, with sellers of family hatches least realistic. The private-to-private car market is worth £6bn annually.
Analysis of a random sample of 50 popular models advertised privately found sellers over-pricing their vehicles by almost a quarter, with an average asking price of £1,716 over the recommended ‘book’ price. The biggest discrepancy came from a Mercedes E-Class with £4,360 on top of the industry recognised value.
Other excessive prices include a Renault Megane at 104 per cent over value, a Fiesta at 78 per cent and a Peugeot 307 at 72 per cent. Whilst supermini owners advertise their cars at nearly 25 percent more than they should, buyers of MPVs and prestige cars could be paying over £2,000 more than the real market value if they pay the full asking price.
Table of average price differences between asking and ‘book’ by vehicle types:
|
Vehicle type |
Average price over-estimation |
% increase of asking price against value |
| Super-mini | £988 | 24% |
| Family hatch | £1,966 | 35% |
| Large family vehicle | £1,194 | 22% |
| MPV | £2,128 | 23% |
| 4x4 | £1,862 | 20% |
| Sports car | £1,330 | 12% |
| Prestige | £2,550 | 19% |
| Average | £1,717 | 22% |
None of the vehicles monitored were valued at, or below ‘book’ price, with a Renault Clio closest to the mark at only £200 over its £6,300 recommended price.
"Although sellers can expect to counter the ‘haggle factor’ of a buyer by adding 10 percent to their target price, more than that can put potential buyers off," said Cardata marketing manager Andrew Sobell.
"Too many people either guess or are being too greedy," said Sobell. "You need to do your homework, and research a fair and accurate price - just as you would if you were looking to buy. Check price guides like WiseBuyer’s to ensure you are not over-pricing your car. If there is a seller with a similar spec car £1,000 cheaper, potential buyers are more likely to pay them a visit than you."
In the majority of cases, prices advertised failed to reflect the number of miles on the clock - a factor that can have a dramatic effect on the value of a vehicle. For example, mileage adjustment on an expensive high-mileage luxury car may be ten times greater than for the cheapest supermini.
To maximise the best price for a car, Cardata also advises motorists give an accurate and fair description of their vehicle.
"Many of the vehicles we checked missed basic details, such as the model type or engine size, let alone the paint finish, any extras and other benefits which will all have a knock-on effect on your asking price. Without these details in your ad, buyers are unlikely to be encouraged to enquire about the vehicle," Sobell added.
Any time I have looked at used "values" in the books (like Parkers / Glass), there's no way I ever see those low prices on the forecourt. Most cars are said to depreciate to around 50% of their new price after 3 years, but who ever sees a vehicle offered for 50% less than new at 3 years old?
OK, there's a price difference to allow for profit in any dealer transaction, but these price books seem way out to me.
CraigAlsop said:
Indeed - the "book" price is supposed to reflect real-world. If most people are actually selling at a price, then the book is wrong, not the real world.
Exactly - the book value is just that. The value of a car, according to a book. Nevermind when the last service was, or whether a major one is due, the exact spec, the aftermarket stereo, the originality, the location and so on. The only thing I find more annoying than 'book' values is the dealers that 'value' your car by reaching across the desk and grabbing the book, without even a glance at the car itself. A car's worth what it sells for. The end.
Waste of time and money. Avoid.
The sad thing though is that not all 'book' trade in prices agree either often by as much as 10% even on cars that go through auctions every day which means that book values are not always reliable. As an indication go and visit some of the websites that value your car and be amazed at the differences in value. I am thinking of selling one of my cars and did this and got prices that varied by as much as 30% which I was very disappointed with
No, servicing and taking care of a car only sustains it's market value, not add to it.
Perfect example is those who charge more for recent MOT and cambelt changes or something like that.
Just read descriptions on Ebay for cars...
"Really well looked after, and the price reflect this"
No, really well looked afer means you get what Parkers car guide says for a good private model, no more!
Things like the current M3 and E39 M5's seem to be a bargain at the moment, even when I check prices with Parkers...
Seems family market car owners, who buy new cars, can't swallow the fact their car has lost a bomb in depreciation, and isn't in massive demand second hand, and not rare at all. They've lost 1000's all for an average car... they try to sell over-price.
Yet sports car owners understand the fact their car looses money (although better as an item to own than a low spec Mundano), and accept a reasonable resale price!
I expect there are those who sell at normal prices or exaggerated prices in both camps, just more in the "family car owner who's lost a packet and doesn't want to sell his car for what it's really worth, eeek" camp.
Dave
My humble view is that you should get a huge loan over the maximum number of years you'll reasonably keep a car to keep payments down and enable you to maintain and run it and go for it and then instead of constantly envying other people's cars, you'll be satisfied with what you've got for 10 years.
Some people whine and say yes but look at all that interest you pay with an extended loan. That's right, so that woukld be about a quarter of the depreciation on all those cars you didn't really want.
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