What Is Market Pricing? Your Guide to Buying Used Cars in Montana

Posted by Mike Murray on Jul 5, 2017 10:34:11 AM

Fair market price on used cars in Montana

When you're searching for used cars in Montana, you want to get the most bang for your buck.

And the pressure is on — the vehicle sales market moves quickly, so there is little time to waste. But it can be hard to know what price is "fair" and a true representation of what the vehicle is actually worth, especially when you're up against the clock.

 

What Is Market Pricing?

This is where market pricing comes into play. Market pricing is the fair price of a vehicle. 

If you head to a Montana dealership or purchase a vehicle from a private party, it's important to understand the basics behind market pricing. 

Market pricing helps you determine the actual worth of the vehicle you are considering. Or, to put it simply, market pricing is the price for which a vehicle should sell for in the local market. 

Determining what the vehicle is actually worth allows you to get the best deal possible when buying used cars in Montana

 

Market Pricing Breakdown

Market value boils down to an average of the vehicle's retail book value and its trade/wholesale value.

Retail book value is a guide for the pricing a consumer should expect to pay a dealership to purchase a vehicle, including any associated markup costs. Trade (or wholesale) value is the price a dealership would pay to purchase your vehicle, minus any reconditioning costs.

 

Determining Market Price

A vehicle's market price is determined by many factors, including (but certainly not limited to) national sales trends, the level of supply and demand, local economy trends, and purchase data. 

Then throw in personal opinion and preferences to further complicate matters. 

Thus, while market value is part data-based, it's also part subjective (and thus part confusing).

 

Helpful Resources for Determining Market Value

While determining market value is anything but simple, there are quite a few helpful resources that simplify the process for you — allowing you to determine your vehicle's market value sans the headache. 

Two trusted favorites are NADA and Kelley Blue Book. These sites offer a plethora of helpful information on determining a vehicle's market value, and if you are looking to sell your vehicle, Kelly Blue Book will even make you an instant cash offer. 

Another great resource is CarGurus.com, where they evaluate prices for you automatically and then rank the price as a "Good Deal," "Fair Deal," or a "High Price." 

 

Determining Trade Value

Trade Value for Used Trucks Montana

Okay, so market pricing is starting to click. But what about the other main values: trade/wholesale and retail book value?

Both values are very dependent on a variety of factors, including accident history, mileage, title condition, after-market changes, interior and exterior condition, and the dealership's current inventory needs. 

At Denny Menholt Ford, we value our customers, and we believe in fair market pricing. That's why we offer the fairest price possible on our used cars and used trucks — right from the start. 

We also believe in transparency. That's why we offer a free "value your trade" service provided by Kelley Blue Book in association with us here at Denny Menholt Ford. Simply plug in your vehicle's information, and this tool will estimate your car or truck's trade value. 

 

Get Fair Price on Used Trucks Montana

We live by this motto: Right Cars & Trucks. Right Prices. Right Experience.

You'll not only get a fair price on used cars and trucks at Denny Menholt Ford, you'll also likely score a deal below market value. We price all our used cars in Butte below market value because we believe in saving everyone time and money.

When you shop with us, you'll find all the right cars and trucks for all the right prices, like a 2016 Ford F-350 Lariat for more than $6,000 below book!*

Don't waste your time or money when looking for a good deal on a used car or truck in Montana. Browse our selection of used cars and used trucks in Montana today!

BROWSE OUR USED CARS + TRUCKS »

*Stock #DP4692. NADA Retail Book $56,975. Sale price $49,999, plus $199 doc. fee.

Photo credit: Ben RollmanNinjah5tar

 

Topics: Used Vehicles