Discovering a particular automobiles exact value is vital in the automotive industry. The dealership needs to understand this figure so that they can set a fair price for the vehicle and not overcharge, whilst the seller will want to find the exact amount out themselves so that they do not pay too much for the vehicle. The final sum may be negotiated, but knowing the exact value provides a fair starting point if the buyer and seller decide to negotiate.
Obtaining Current Market Prices
Fortunately, it can be simple and straightforward for businesses to obtain the current market price so that a fair price can be set. Companies like Cap HPI can provide Black Book figures, which are the industries most relied on source for providing vehicle valuations. Black Book acquires pricing data from wholesale auctions and retail transactions up and down the country. They gather data to produce weekly valuations for the most up-to-date pricing information possible and they categorise vehicles by conditions such as Extra Clean, Clean, Average and Rough.
Black Book Awareness
Black Book values have been around since 1955 and have become an industry favourite tool for establishing wholesale prices. Both businesses and consumers are being made more aware of Black Book figures by dealerships advertising that they use their values. Additionally, Black Book provides used car values for dozens of automakers websites, ensuring that they have a strong online presence which is important with so many motorists browsing for vehicles online.
Understanding their Values
As such a valuable tool, and one that can help dealerships to maximise profits when used correctly, it is important that they use and understand how Black Book values are reached. Businesses need to understand that factors such as mileage, damage, condition and age all have an impact on a car’s value, but Black Book focuses on wholesale values for the most accurate information. The frequent updates ensure that there is a faster response to market fluctuations, so businesses are constantly able to update their used car prices.
Vehicle valuations are vital in the used car industry for both the business and the consumer. Accurate and up to date figures need to be obtained so that a fair price can be established, and the seller does not over and underpay. There are various ways that these values can be obtained, but businesses should be aware of Black Book values as these provide the most accurate and up to date values.