Hey Scotty thanks for all your amazing videos. I have been looking to buy my first car and it has been a lot of help.
While looking at so many cars on the market, I realized it is really quite difficult for us (first time buyers, people who are not familiar with cars) to determine what would be an appropriate price for a car. I always thought that I found a good deal and whenever I show it to my friend or here on the forum, more than often I am told that I am overpaying for the vehicle. So the question is, what is a good way to determine an appropriate price of a car? I used KBB, carfax, edmunds, and all that other websites which gives usually repeated or similar car values. I tried to search about this topic in this forum but seems like this is a topic that was not really discussed about in depth.
So, I would like to ask all of you who have many years of experience, how do y'all determine an appropriate car price? and what methods would you suggest to a person like me who is not familiar with the market to determine the price?
P.S. I am looking at a 2013 Toyota Corolla L with ~140,000 miles for about $11k. Is this a bad deal? According to KBB, the vehicle has a value of $8,441 - $10,254.
Nothing is worth more than someone is willing and able to pay for it. KBB, Consumer Reports, Carfax, etc., are all scam to semi-scam information sources. Look at what the asking price is for that vehicle from private sellers in your area. Don't bother with dealers, they are all dishonest to say the least. It's like doing real estate comparables only with cars. And don't even consider buying anything that you cannot have inspected by your own, independent mechanic. If I find something I want to buy, I'll start by offering half the asking price. After the seller gets over his mini stroke, I go from there. Be prepared to walk away. Like the man said, "If you wait long enough, another bus will come along."
It is difficult to determine the price of a vehicle. In reality, it is what someone is willing to pay for it in combination with market conditions.
If there are a ton of cars on the market and low demand, prices will tend to be lower. If cars on the market are scarce, and demand is high, prices will tend to be higher. Right now, it seems there is low stock, and high demand, so prices are outrageous. Some USED cars are going for MORE than the same NEW car, only because the used car is available, and the new one there is a wait.
When making totaled insurance claims, insurance companies do comparisons of your car versus how much it would cost to get the same car with the similar mileage and condition, to figure out how much your car is worth.
While I don’t like KBB, CARFAX, edmunds etc… these are tools to give you a guesstimate if what the market thinks a car is worth.
Compare this to actual dealer stock in your area and what prices are. And also look at private party price offerings. These are just the ASKING price, and not the SELL price for the car. Typically the sell price will be lower.
Many on this board, like myself, are used to used cars costing lower than what they are now. At the same time, the market is different now than two years and a half years ago. So prices may be indeed by higher.
Same as buying anything used. Shop around and research.
