Market Price Used Cars Billings
"Below Market Value": How We Price Our Used Cars
At Denny Menholt Chevrolet, we price all our used cars in BILLINGS below market value.
But what exactly is "market value"?
We know the used car market can be tricky to understand. Whether you're buying or selling used cars in Montana, you want to know what's fair — what others are paying, what you can expect to pay, and what criteria car dealers use to determine your trade-in value.
Let's dive into the world of "market pricing" to learn the answers to these important questions and more.
What Is Market Value?
"Market value" is a rather vague term, but basically it stands for the price a vehicle could sell for in the local marketplace.
Market pricing is considered an average of a vehicle's "retail value," which reflects the price a consumer would pay to the dealership (including any associated markup costs), and its "trade/book value," which reflects the price the dealership would pay you for your vehicle (prior to any markup costs).
This has implications for car insurance as well. When you're negotiating your insurance policy for used cars BILLINGS, you can actually insure your vehicle according to one of three different values:
- Retail value: The highest value (and thus the highest premium and payout)
- Trade/book value: The lowest value (and thus the lowest premium and payout)
- Market value: The average of the previous two values
How Is Market Value Determined?
The market price of used cars Montana is determined by several factors, including national sales trends, local economic conditions, and auction data.
Think of it like buying a home. You wouldn't expect the price of a house to stay the same over a ten-year period, even if the condition of the house remained the same. You have take into account the current economy, the level of supply and demand, changes in the neighborhood, and so much more. Buying a car is very much the same.
This may make it sound like market price is a highly subjective number — and, to some extent, it is. An asset's value will always be whatever the purchase is willing to pay for it.
But these days, there are so many resources and tools for determining the real market value of used cars in BILLINGS. Kelley Blue Book is one of the most trusted sites on the topic, offering tons of helpful info on current market pricing. In fact, it's where the term "book value" comes from. Edmunds also offers its free True Market Value® (TMV) tool to help you figure out the fairest price for a vehicle. Or, to see what used cars in Montana are selling for right now, visit Autotrader.com. It'll give you a good idea of what you can expect to pay (or sell).
Want to find out the market value of your current vehicle? Get your free trade-in evaluation here. These Car and Driver values are calculated from the same Black Book® data dealers use to appraise vehicles, giving you the best estimated value.
How Is Trade-In Value Determined?
Remember that market pricing is really an average of retail value and trade/book value. So how are those prices determined?
As a starting point, here are the top seven factors that dealerships use to determine trade-in value:
- Vehicle information (including year, make, model, trim level, and color)
- Current mileage
- General condition(including exterior, interior, and mechanical aspects)
- After-market modifications
- Accident and service history
- Current market conditions (including national sales trends and auction data)
- Dealership needs
That said, different car dealers in BILLINGS have different approaches to the trade-in process. Some will offer you less, since they know they'll be able to mark up the vehicle later. At your Montana Chevy dealer, though, we aim to give you the most honest estimate we can. We're willing to offer you more money for your vehicle in the hope that we earn your trust and business later.
If you're thinking about selling your vehicle, we'll even offer you a free trade evaluation. Simply fill out this short form, and we'll be in touch to let you know your fair market value.
Our Brand Promise
At Denny Menholt Chevrolet, our brand promise is "the right cars, the right prices, and the right experience."
To us, the "right price" is more than a catchy phrase. In fact, we use a sophisticated real-time tracking software to research the current selling price of similar makes and models. That way, we're able to set our prices below the market value.
By shopping other dealerships for you — and setting our prices lower — we're able to save you both time and money.
To see our "right prices" (and "right cars") for yourself, we encourage you to browse our used inventory online, or click below to learn more about our brand promise!