I came across a 2008 car in an i-want-a book and it was the same price as a 2004 model of the same car.
whats up with that? Could the miles on the car be the reason???
of course i realize there could be other factors. but i just want to know if the miles on the car could be a reason behind it.
There are two things that drop the value of a late model car, high mileage and prior accidents. If a 2008 car has say 90,000 miles it is not only very difficult to sell but it is worth about half what a car with say 20,000 miles. It is crazy but the car with outrageous miles is worth about the same as a car several years older with the same mileage. Also if a car has a salvage title it probably has been in a bad accident and that makes it worth about half what a car with a clean title is worth.
Before taking ownership of a car a dealer will obviously need to decide what “trade” price they will be
willing to pay and that decision is usually based on the following factors:
The market conditions they are currently operating in.
What the trade guides may tell them.
The results of researching what cars are selling on the internet for and working back
Experience – many trade buyers just know what their product is worth.
Who they are buying from and how low a price they can offer to successfully conclude the deal.
Stock profiling – looking at how much similar models have sold for recently.
How rare, highly specified and how sought after a model is.
The condition (including mileage) specification and desirability of the car itself
Once they have considered these factors they can then decide on how they will put a retail margin across the car, and again this will depend on how many they already have (their stock levels) how many are for sale in their own network and more than likely a sense check against similar models on the internet within their radius.
Of course apart from the normal trade considerations about how much profit they are budgeted to make on each car and what they would need to spend on ensuring that car is prepared and presented properly, there are also things like regional variations and anomalies wherein diesels being inexplicably more popular in some places and automatics a safer bet in another.
Read more: http://www.motor-trade-insider.com/index.php/2010/01/price-swings-so-how-does-a-dealer-price-a-used-car/#ixzz0j0FmQ831
Age way not anything, mileage additionally, It comes right down to construct great and protection. Every automobile corporation has there automobiles there pleased with and there are those who they desire they in no way constructed. I appear at rear wheel force. Insurance premiums and cost of melancholy. A Mercedes handiest loses 10% within the first 2 years of possession, a Toyota a bit of extra however there are automobiles that can lose up to forty% within the first year. You could believe that a automobile like that’s effortless at the pocket however would possibly rate u extra in the end.