Innovative Ways to Determine the Fair Market Value of a Vehicle

Fair market value for new vehicles

When it comes to new vehicles, we hardly get any option to negotiate with the sellers. There are only a few chances of negotiation, if you can smartly grab them you can seriously be a winner. The key to getting a discounted price in a new vehicle is focusing on the dealer’s cost. You can surely ask for a discount of up to 2% on the invoice price. This will be a fairly decent negotiation. Just make sure that you appear to be confident inside the showroom. The sales representatives do not like to entertain or offer any discount to a customer who has neutral responses.

But, how will you have an idea of the fair market value of the vehicle you have chosen? For that, you need to compare among different dealers or review online and get a fair idea of the market value, beforehand. These are some of the tricks that you can apply to determine the fair new car price.

Fair market value for used vehicles

Unlike first-hand cars, second-hand cars give much more opportunities to negotiate. In this case, it is actually very hard to determine the accurate valuation of the car. Generally, buyers have to agree to the quoted price of the sellers, believing that the stated condition of the car is true. But, how can you be sure about the condition and the price of the used car or get some kind of guarantee? Is it even possible to term ‘this is the fair market value of the vehicle’? Yes, now there are innovative and fruitful ways to determine the accurate desired car price, after evaluating all the factors associated with the used car.

A seller needs to submit all types of information and a professional even inspect the vehicle. On the basis of the info, Orange Book Value (OBV) calculates the price of the vehicle and it is truly the fair price bracket of the car. Though sellers get the leverage to set the price of the used car as per their choice, a buyer can easily negotiate and lower the car price up to the level of OBV set price. It is a free tool that can be used anytime irrespective of the fact that you are using Droom as a platform to sell or buy your vehicle. OBV is an independent tool that allows you to evaluate the right price of your car so that you never get cheated or exploit someone else with a higher market value of your car.
For example, you have a Toyota Innova car with 2.5 G trim of 2012 model. As per your provided info, OBV may rank your resale value between 5.77 – 6.13 lakhs. You are supposed to fix your car price within this price bracket. But, you may even price it at 8 lakhs. But in such a situation, the buyer has the right to negotiate up to 5.77 lakhs and purchase the car at the most fairest price.

Post a Comment