Gallery M Squared Recreation How Used Car Pricing Is Set

How Used Car Pricing Is Set

When you’re in the market for a Autohitch, knowing how prices are set can help you avoid paying too much. But it’s not just the overall price that matters; a variety of individual factors can make a big difference.

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One of the most important things to remember when negotiating is that the dealer’s wholesale and private prices are two different figures. The dealer’s private price is based on how much the vehicle would sell for on their lot to someone who wasn’t already a dealership customer. It’s essentially their profit margin, and it can be significantly higher than the retail price.

The dealer’s wholesale price, on the other hand, is based on the average auction price for a similar vehicle that’s currently in inventory. This is why it’s so important to use services like Edmunds or Kelley Blue Book, which are able to break down the price by model, options, mileage, condition and region.

Another factor to keep in mind is that the car’s exterior color can also affect pricing. Certain colors, like blues and metallic grays, typically sell faster than more adventurous hues. And aftermarket modifications can be a double-edged sword: Adding a fake hood scoop or zebra-print seat covers may add some oomph to your ride, but they’ll likely take away value when you go to sell it.

And don’t forget that the amount of financing you’ll need to obtain will have a big impact on your total cost. Be sure to get pre-qualified, so you have a realistic idea of your maximum payment.

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