How Are Used Cars Priced?

How are used cars priced? Like real estate, the used car market follows the rules of supply and demand. When a certain vehicle is in short supply but high demand, the price goes up. If there are plenty of them around and demand isn’t that high for them, the price goes down.

Market Trends

Dealers often compare prices with other dealers to see what the overall market looks like week by week. Sometimes they’ll raise the price on a used vehicle if they think people will be willing to pay it, or they’ll lower the price to spur interest and “get it sold.” Most dealers have the sticker price on the vehicle but end up selling it for a slightly different amount when the buyer is actually in the office, negotiating the final price they’re willing to pay.

Deals With Car Companies

Once in a while, there will be a dealer who will set their prices such that what’s on the sticker is exactly the price the buyer will pay– no negotiating allowed. In fact, the Saturn brand was famous for that a while back… however, the majority of dealers are open to negotiating the final, actual price.

Time of Year

Oh, and something else to think about: the time of year affects the pricing of vehicles. For instance, you’re likely to get a better deal on a convertible if you buy it in the middle of winter, while the price of 4×4 SUVs (which do well in snow) might go up during winter months.

Mileage and Condition of Vehicle

There are several factors involved in setting a price for a used vehicle, including the amount of mileage on it (is it high or low?), the condition it’s in (great/good/fair), the age (is it 10-years-old or just a year old?), and even the color. For instance, some dealers might charge a little more for bright red because it’s more rare and exciting than, say, all the other black, white and silver vehicles on the lot.

Are you looking to buy a used vehicle in Lehighton, PA? Come to 443 Auto Sales and see what’s on the lot. Take some test drives. Meet with salespeople and discuss your needs. Then, find one you’re interested in and negotiate your good deal!