How are new and used car values determined?

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Aug 9, 2013 | 11:00 AM

#21

Doug

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Joined: Mar 2008

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From: Pacific Northwest USA

Quote:

Originally Posted by amcdonal86

I wonder how much people would be willing to pay for any car, if they just removed MSRP's altogether.

Maybe eBay is a good method of finding out what people are willing to pay--many cars do not even get close to their fair market value prices

I'd change that a bit.

Fair market value and "willingness" to buy/sell intrinsically go hand-in-hand. So, it might be said that an auction establishes "fair market value" rather than defies it......at least in the given window of time and with the given group of possible buyers.

I think it's more a case of the Ebay cars not fetching "book value".

Cheers
DD

Aug 9, 2013 | 03:27 PM

#22

bobby

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Joined: Nov 2010

Posts: 90

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From: West Palm Beach

"not hitting the reserve" isn't an indication of anything other than a seller's inability to part with an item due to a misconception of value. We've all had something that we thought was worth a lot because of some intangible quality. We've also all had something that we spent too much on and couldn't stomach the loss.