If you aren’t far enough under the MSRP or KBB numbers, other dealerships can’t profit. This will influence what car buyers will pay at auction. Knowing what the customer will want to pay, dealerships start with a higher asking price. This sets a realistic range for where negotiations might end for a buyer. Knowing the average amount you think your customer will pay gives you the power when you sell a car at auction. Again, this might not be your asking price, but understanding expectations is important. Due to the guide's popularity, this is a number customers will expect to see at a dealership. Used Cars: Here we would recommend keeping the KBB number in mind.Then before the auction, you still have room for adjustment. Knowing customer expectations will let you better estimate what you can pay. This doesn’t mean you’ll need to offer it at this rate. This is the number customers will expect to pay for a new car. This is also sometimes called the sticker price of the vehicle. This will be the high end of the pricing scale for wholesale on new cars. New cars: We recommend using the Manufacturer’s Suggested Retail Price (MSRP).Start here before your dealership decides on wholesale prices. You need to know what people will pay for a new or used car. With so many price points, what do you focus on? Let’s narrow this down. This gives you the exact condition of your vehicles as buyers will see them. You’re one step closer to setting the reserve price and auctioning your car.ĭon’t forget, when you sell cars with ACV Auctions, we send qualified vehicle evaluation experts to you. With these powerful tools at your fingertips, you can find the average price a car sells for at auction. You can even explore details like condition, damage, mileage, trim, and more. You get real-time data on car pricing locally and nationally. These reports include every car sold on our auction site. You can use a guide to get a basic price, but what about the specifics? Registered dealers at ACV Auctions have access to data-driven used vehicle reports. So if you use this guide, you may need to adjust your estimate down if the car is in fair or poor condition. NADA prices assume a very clean or clean trade-in. NADAguides were originally designed for car dealers and are considered an old standby. NADA is a trusted authority in the automotive industry. NADAguides - NADA stands for the National Automobile Dealers Association.This guide is a good way to get a jumping-off point for wholesaling. Ultimately, you can get a range for the wholesale and trade-in value. It allows you to input variables like mileage and condition, and adjust for the car’s history. It’s made for dealers to estimate car wholesale prices. Black Book - This is similar to KBB, but you need a subscription.
It’s also a baseline for the trade-in value which can help determine wholesale value. KBB gives consumers an idea of what their car is worth at retail to a private party. Kelley Blue Book - People often question whether Kelley Blue Book (KBB) is retail or wholesale? Really, it’s a little bit of both.We recommend checking out some of the following used car pricing guides: Still, there are a few guides created specifically for car dealers. Some are for the public trying to understand terms like MSRP. Not all used vehicle pricing guides are created equal. These methods can help you develop a starting point for your car’s wholesale value: Check used car pricing guides: There are a few ways to get a ballpark number of a car’s price. There is no one size fits all approach to pricing your used cars. But is that realistic? We know it can be difficult to find great inventory. When it comes to your car’s wholesale value, the suggestion about always buying 20% below retail gets thrown around a lot. The real question is, how do we accomplish this? To make money on a deal you need to buy low and sell high. Buy Low, Sell High: What's the Wholesale Value of My Car? What about the cars you bought that just don’t sell? What do you do with a car that isn’t hot in your market? These are just a couple of questions you should be asking yourself, as you have to get them off the lot before they lose value.įollow these tips to price your wholesale cars, and you’ll quickly be on your way to wholesale car auction success while maximizing profits. You need to know the car wholesale value, but how do you find the right number in a sea of advice? Meeting your bottom line and making a profit is not a one-step process. There are many different pricing guides out there, making it tough to keep track of what’s what. Wholesaling cars is a must for dealers, but the process can be confusing.
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