Mmr car value

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MMR Help

About MMR

MMR is a tool that will help users find pricing on vehicles that interest them most, across all Manheim inventory. In addition to basic information, MMR provides users with pricing projections, transactions listing, auctions listing, summary information and a variety of reports based on their selection.

MMR can help you research vehicles quickly and easily - it can target specific vehicles nationally or by region.

MMR Searches

You can perform an inquiry on the MMR page by either selecting:

  • VIN: Enter a full VIN or just the first 10 digits.

OR

  • Fill in the Description fields: choose the year, make, model and style, region
  •  Fill in the Option fields: region and seasonal adjustment (yes or no)

Frequently Asked Questions

How do I access MMR?

You may access MMR from the Buy and Sell tabs located on every page of manheim.com.

How do the values in MMR compare with traditional guidebooks?

It is not uncommon to find differences between MMR values and guide books. MMR prices are based exclusively on millions of actual sales that are updated daily. The statistical programs that compute the averages are completely neutral, using universally-accepted statistical techniques without editorial opinion or bias. The MMR programs do not use interpolation to compensate for insufficient data. Guide books, which do not have access to the same amount of data as MMR (much less on a daily basis), use editorial expertise and limited market observations to arrive at prices; for this reason, there may be differences.

Why is the mileage different for each vehicle?

Because that's the way it is in the real world. For example, the average family car logs more miles than an expensive weekend-only sports car. MMR obsoletes the old-fashioned "mileage tables" that do not allow for differences in how a vehicle is used. The MMR statistical programs compute a separate average mileage and per-mile depreciation factor for every vehicle in its database.

How are the MMR averages calculated?

New calculations are performed every night in order to include the latest and most recent sales transactions in the MMR database. The statistical engines then analyze every transaction so that, for every vehicle, each MMR value — historical averages, depreciation factors, regional and seasonal adjustments, and price forecasting — is based on the most up-to-date information available.

  • The program begins by gathering all transactions for a specific vehicle.
  • If a statistically sufficient sample cannot be found from the previous 30 days, the statistical models progressively search earlier months until a sufficient number of representative transactions are found. Any auction transactions gathered from earlier months are "aged" to the current month.
  • Statistically unreliable records (outliers) are discarded from the sample. For example, the MMR statistical models may exclude a high-mileage vehicle that sold at a significantly higher price than similar vehicles with lower mileage, or a low-mileage car that sold significantly below higher-mileage cars. MMR also excludes salvage vehicles, specialty vehicles such as boats and motorcycles, heavy trucks, "lemon law vehicles" and vehicles sold in bulk.
  • The statistical engines are very responsive to data integrity and availability. For example, MMR does not provide estimates for mileage depreciation and price forecasts if there is an insufficient number of recent and statistically reliable transactions — MMR doesn't pretend to know something when it doesn't have the data to back it up. However, the moment reliable data becomes available MMR immediately applies the best statistical methods available to estimate MMR values.
  • It is this combination of statistical precision, access to same-day sales transactions, trim level data, historical averages, and depreciation rates, as well as immediate responsiveness to changes in data, that makes MMR so valuable. The resulting values are then presented in MMR.

Why do I get a different result than MMR when I average the transactions?

The results are different because you are working with a different set of data than the one used by MMR statistical models. For some vehicles, the difference is very slight; for others it is pretty substantial.

In addition, MMR has two components. The first component is the prices and mileage displayed in MMR. These are pre-calculated by MMR statistical engines and then displayed in a file that is separate from the auction transactions. Your PC doesn't calculate the averages; it just displays them. The second component of MMR is the auction transactions displayed on the Transactions and Auctions summary tabs. These transactions only represent a sample of the previous 30 days of transactions, and are included solely to provide additional information about transactions in the wholesale auction market. These summary tabs are equivalent to a post-sale report with a few sorting features. However, MMR statistical models base their calculations on ALL transactions for a specific vehicle; not just the most recent ones listed in the Transactions or Auctions summary tab.

Why does MMR pre-compute averages?

For many reasons, but the most important is that the statistical solutions for calculating averages from small data sets — such as brand new models or seldom-traded vehicles — requires a lot of processing time and horsepower to arrive at accurate averages. This kind of heavy lifting is outside the capabilities of desktop PCs.

How is the vehicle's condition determined?

Vehicle condition is a subjective judgment and MMR is objective. However, for the convenience of subscribers for whom condition is important, the MMR program simulates condition by showing values and mileages that are estimated above and below the average price and average miles. In the future, MMR will incorporate objective data, such as condition grades where available, as a parameter for improving the accuracy of the MMR forecast.

What does "Projected Values" mean?

Projected or forecasted values are MMR predictions of prices for today, next week, next month and next year. These projections are based on millions of auction transactions that are updated daily. These predictions are the result of the MMR comprehensive forecasting program. The accuracy of the modeling technique is tested daily against the most current actual auction transactions and adjusted based on the best available statistical model.

What is "Estimated Retail"?

Retail values are shown in MMR only for the convenience of our subscribers who need an approximate retail price. These retail prices are estimated mark-ups of actual wholesale values. However, Manheim does not currently collect data on retail values and recommends users incorporate additional sources of retail information to develop a more accurate estimate for retail prices.

When requesting data, which transactions are considered invalid transactions and excluded from MMR?

The following transactions are considered as invalid transactions: Total Resource Auction (TRA) - Salvage, Mark III, Specialty Vehicles, Collision, Distribution Center, Heavy Truck, Salvage Unit not TRA

How often is MMR updated?

All pricing is completed nightly, Monday-Friday. The process begins Monday through Friday evenings beginning at 10pm ET and finishes between 12:30-2:30am ET the next morning. The process also runs on Sunday morning at 4am ET and typically finishes around 7:30am ET.

Can I sort my search results?

Yes. By clicking on a column heading, you can view the results in ascending or descending order.

Yes, just click on View in a pop-up window at the top left-hand side of any MMR page, under the main navigation.

What is required to use MMR?

MMR supports Internet Explorer 5.5 and higher with frames supported and cookies enabled.

How do I enable cookies?

To enable cookies do the following:

  • Click on Tools at the top of the browser
  • Select Internet Options.
  •  Once the Internet Options dialog displays, select the Privacy tab.
  • From within the Privacy tab, click Default or set your settings to Medium.
  • Click Apply at the bottom and then click OK.

I want to print my results out for each vehicle I look at but I only get the lower half or the upper half to print out. How do I print it all at once?

This is because the application uses frames. Try printing using one of these methods:

The Printable Version link in the upper-right corner.
Or:
The print option of the browser.

    Click File in the upper-left corner of the browser (or type Ctrl+P).
    Once the print dialog displays, select the Options tab.
    Within Options select As laid out on screen.
    Press Print at the bottom.

I keep getting the same information in the "Prices" section for every vehicle. How do I fix it?

The page has been cached and isn't reloading. The cache setting must be set to automatic for the browser.

  • Click on Tools at the top of the browser.
  • Select Internet Options.
  • From within Internet Options, click Settings.
  • From within Settings section, select Automatically.

I keep getting the same error "Cookies ERROR: Please enable cookies and try again" although I have cookies enabled. How do I fix it?

We have found that some antivirus software removes the cookie that is required.

  • Try changing the settings of your antivirus software or turning it off for the time being.
  • Close all browsers and try to access MMR once more.
Sours: https://publish.manheim.com/en/help/mmr.html

How much is the car dealership going to offer you for your vehicle? You can bet that they’ll come in with a low offer, so you should be prepared with plenty of information to allow you to counter that offer.

Consumers have access to a number of services that can allow them to understand the value of their cars, including Kelley Blue Book, NADA Guides, and Edmunds. All of these sources can be used by consumers when they are deciding how to price their vehicle.

However, car dealerships have access to different sources of information that help them to determine how much to offer you for your car. One of these sources is called the Manheim Market Report, otherwise known as MMR. MMR values are designed to allow car dealerships to assess how much should be offered for any potential trade-ins.

Today, we’re going to take a look at MMR values, including what they are, how MMR reaches its prices, and how these values will affect your car buying experience.

What is MMR?

MMR, which is short for the Manheim Market Report, is a specific report that’s available to auto wholesalers. Manheim is a brand of wholesale auction house that has auctions in every state (and most major cities). As such, there are millions of sales transactions being tracked every month through their services.

Manheim put together the MMR to help car buyers and sellers understand how much they should be paying for a vehicle. MMR values are a specialized tool that’s only available to people who buy cars at wholesale prices, which typically means that it’s used by car dealerships.

How Does MMR Reach Its Value?

MMR provides data about the wholesale prices of vehicles for the past 13 months. All of this data is generated by real vehicle sales at the Manheim auction houses found throughout the country.

While their method for gathering data is straightforward, the way that they present it is quite helpful to anyone that is looking to buy or sell a vehicle at a wholesale auction. 

MMR values will show prices in wholesale and retail markets, with three different tiers of prices that are based on the condition of the vehicle. Additionally, the report shows prices going back one year, six months, and two months. Then, predictions are made for how the price will change in one month and one year.

Are MMR Values Accurate?

Since MMR gathers data based on its own sales, it can be considered to be quite accurate. Every sale made at an auction house in the Manheim network is tracked, analyzed, and used when someone generates a report for the same vehicle.

Car dealerships use MMR values in conjunction with other vehicle evaluators to help them determine how much to offer a customer for their trade-in. An MMR readout will give a car dealership a general idea of how much they could sell your trade-in for at an auction, which guides how much they’ll be willing to offer you.  

Something that’s unique to MMR is that the prices are updated and refreshed every night. Since Manheim auctions are operating all the time, this allows Manheim to integrate new sales data into their pricing evaluations regularly. Other similar evaluators will only update data every week or every month.  

When Should I Use MMR Values?

Like a few other auto evaluation services, you won’t be interacting with the MMR directly. However, it will impact the offers that you receive from car dealerships on your trade-in. Dealerships will often use the MMR, Black Book, and vAuto to reach an offer price for your vehicle.

When you trade in your vehicle, your job is to have plenty of data available to counter the car dealership’s offer. Before visiting the target dealership, you should use a YAA trade-in valuation provided by Black Book, Kelley Blue Book printout, and perhaps a NADA Guide evaluation. On top of these evaluations, having a real offer from sites like Carvana and Vroom will encourage a dealer to offer more for your trade-in.

Remember to negotiate the price of your trade-in and the price of your new car in two separate negotiations. If you end up negotiating both at the same time, the car salesperson has the opportunity to manipulate the numbers to make it seem like you’re getting a better deal than you are. Start by negotiating the price of the new car, then mention that you have a car that you might trade-in for the right price.

Interested in learning how people come up with car values? You can learn more about other evaluation books here.

Sours: https://joinyaa.com/guides/what-are-mmr-values/
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Manheim Market Report VIN Scanner

Never Type a VIN Number Again

Best-in-class VIN Scanner with instant Manheim Market Report vehicle appraisal data

Use your camera to automatically find VIN numbers in printed text, handwriting, screens or the vehicle's barcode or dashboard. Instantly load configuration, trim, appraisal, and integrated history reports.

Vin Scanner with OCR & TextOCR & Text

Find VIN numbers in a sea of text, whether from printed paper, emails, texts and more.

VIN Scanner for Barcodes and DashboardsBarcodes & Dashboards

Quickly and accurately get a vehicle's details from a VIN barcode. Effortless.

VIN Copy and PasteClipboard Import

The Carbly app detects when you have copied a VIN to your clipboard, and will automatically prompt you to run an appraisal.

VIN Scanner or iOS and AndroidiOS & Android

Carbly is currently available for both iOS and Android, for licensed auto dealers only.

Sours: https://getcarbly.com/vehicle-appraisals/manheim-market-report/
HOW to get the MOST MONEY when TRADING in your CAR!

Valuation

Manheim Market Report

The Manheim Market Report (MMR) is the premier indicator of wholesale prices. Pricing calculations are based on over 10 million sales transactions for the previous 13 months with precise pricing unmatched by guidebooks.
        
Pricing is refreshed each night, so you'll get access to the most accurate prices around. The large volume of data removes the need for statistical interpretation, allowing for pricing calculations without opinion or bias.

Buyer Benefits       

  • Complimentary access makes it easy to get pricing data
  • Comprehensive transactional data deliver make, model, and trim-level insights
  • Easy access to the Manheim marketplace gets you from vehicle valuation into the sale 
  • Estimated Retail Value, based on actual advertised retail prices, helps evaluate potential inventory

Seller Benefits

  • Values are complemented by recent, actual transactions that help you price your vehicles
  • Accurate market pricing increases the chances of selling vehicles
  • 30-day average prices let you see how a vehicle's value is trending
Sours: https://publish.manheim.com/en/services/valuation

Value mmr car

ATLANTA - 

In normal times, wholesale transaction prices tend to change gradually over weeks and months, and Manhieim Market Report tracks these changes extremely well. But with COVID-19 and the sweeping effects it’s having on the economy and automotive industry, we aren’t in normal times.

It’s not surprising, then, that I’ve received numerous inquiries about MMR over the past few tumultuous weeks. In this unprecedented time, I know consignors and dealers are looking for guidance in making the right business decisions, from setting competitive floor prices and deciding on maximum bid prices at auction to accurately assessing trade-in values.

To understand how this gold standard valuation tool can be used with confidence during the current volatile market, let’s take a look at how MMR works:

  • MMR represents the wholesale value of distinct Year-Make-Model-Styles (YMMS), adjusted for various vehicle attributes like mileage, AutoGrade condition and exterior color.
  • MMR is powered by a non-editorialized, statistical analysis of in-lane and digital wholesale vehicle transactions that are facilitated by Manheim, and it’s updated daily.
  • MMR uses a dynamic look-back period. To ensure sufficient transaction sample sizes, MMR starts with transactions from the prior 30 days and extends back further as needed based on recent auction volumes.
  • MMR is not a simple average. To reflect today’s value rather than a historic average, MMR accounts for the upward or downward trend of transaction prices over the look-back period.

How does MMR perform in typical markets?

MMR is intentionally designed to be highly stable and avoid over-reacting to short-term market ups and downs. During typical market inflections, such as the seasonal spring bounce, MMR reacts smoothly and takes a couple of weeks to fully normalize to new market conditions. A great way to measure this normalization is by comparing average auction transaction prices to MMR values — we call this metric MMR Retention.

To get a sense for how MMR reacts to typical market swings, let’s look back at MMR Retention — along with its underlying auction sale prices versus MMR — across all Manheim transactions throughout 2019:

See Figure 1 here

Note: Figure 1. [a] Weekly average Manheim auction sale prices (blue) and MMR (orange) throughout 2019. [b] MMR Retention (i.e. weekly average sale prices divided by MMR) throughout 2019. During steady markets, MMR Retention is about 100%. During the spring/fall markets, MMR Retention typically increases/decreases by 1-2% for a few weeks.

As you can see in Figure 1 (in the above link), MMR Retention is almost exactly 100% during steady markets, but it varies up or down by 1-2% during typical seasonal inflections, like the spring bounce and fall decline. During these time periods, it usually takes MMR a couple of weeks to fully catch up.

How does MMR perform in a volatile market?

During the past few weeks, the changes in the wholesale market have been unprecedented in their abruptness and magnitude. Driven by constrained retail demand, auction sales rates and volumes have dropped dramatically.

Auction transaction prices, reflecting this supply-demand imbalance, have in turn fallen precipitously. MMR has fallen, too, but by design not as steeply. As a result, MMR Retention has dipped significantly below 100% in recent days (See link to Figure 2 below).

See Figure 2 here

Note: Figure 2. [a] Daily average Manheim auction sale prices (blue) and MMR (orange) in 2020 to date.     [b] MMR Retention (i.e. daily average sale prices divided by MMR) in 2020 to date. A typical spring bounce had begun in early March, but then auction prices began plummeting as the COVID-19 crisis unfolded.

Why is the difference between MMR and real-time auction sale prices much larger right now than during typical market inflections? I believe there are three reasons:

  1. Driven by a cessation in retail demand, wholesale transaction prices plummeted faster than ever before.
  2. Due to low auction volumes, MMR isn’t weighted as heavily as usual by recent transactions.
  3. The current market downturn occurred in the middle of the spring bounce, providing mixed trending signals to MMR.

Unlike other benchmarks, MMR is based purely on statistics: the marketplace tells us what MMR is, that is, we follow the data without introducing human subjectivity into the values. MMR is intentionally designed not to have a knee-jerk reaction to extremely unusual events like we’re experiencing now. As this volatile market stabilizes, I expect MMR to re-normalize to real-time transaction prices and MMR Retention to return to 100%.

How to use MMR to guide used-vehicle business decisions during turbulent times

Our goal is to keep the automotive industry moving forward during this unprecedented time. Manheim and other Cox Automotive companies have taken numerous steps to help our clients and partners keep the automotive marketplace up and running.

To help clients better assess vehicle values, starting this week and until the wholesale market stabilizes, Manheim will publish daily views of MMR Retention on the Manheim.com website: https://publish.manheim.com/en/whats-new/daily-mmr-retention.html

Using MMR Retention in combination with MMR itself can help guide business decisions during these turbulent times.

As I mentioned, right now MMR Retention is lower than 100%, which means that real-time values are less than MMR. For example, if MMR for a given vehicle is $10,000 and today’s MMR Retention is 95%, then the vehicle’s value is around $9,500. Consignors who want to sell cars should set floor prices based on a $9,500 value. With limited demand in today’s market, it’s more important than ever to price vehicles properly using data-driven metrics like MMR and MMR Retention.

Why can’t you speed up MMR’s reaction time?

As the industry’s standard for wholesale valuations, relied upon by so many industry partners, it’s important that we maintain MMR’s robustness with the long-term in mind. Over the past few days, many people have asked me, “Can’t you improve MMR’s reaction time by weighting recent transactions even more heavily than you already do?”

It’s true that doing so might reduce MMR’s lag in today’s rapidly changing environment, but it would come at the cost of reduced stability and false-positive swings in MMR — even during normal times. So, in these extraordinary times and until the market stabilizes, I recommend pricing your used-vehicle inventory based on both MMR itself and MMR Retention.

Benjamin Flusberg is associate vice president of M LOGIC, a suite of decisioning tools from Manheim that brings the power of Manheim and Cox Automotive data, tools and insights to help clients make smarter, real-time decisions and take action for faster inventory turns at every step of the wholesale life cycle. 

Sours: https://www.autoremarketing.com/wholesale/commentary-how-make-sense-manheim-market-report-volatile-market
HERE’S HOW TO NEVER PAY TOO MUCH FOR A CAR AT THE AUCTION! SECRET CAR DEALERS DONT WANT YOU TO KNOW

Wholesale Used Vehicle Prices Peak According to Latest Manheim Data

ATLANTA, July 8, 2021 – Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) decreased 1.3% month over month in June, after record highs for four consecutive months. This brought the Manheim Used Vehicle Value Index to 200.4, a 34.3% increase from a year ago and a 1.3% decrease from a high of 203 in May.

“After several months of record highs, all indicators now show that wholesale used vehicle prices peaked in early June and have started to decline,” said Cox Automotive Chief Economist Jonathan Smoke. “In June, the Index hit a record high of 203, and we don’t anticipate seeing numbers in the 200s again for likely several years. Based on our data, it’s clear that supply and demand are more in balance and may be tilting slightly to favor buyers. There are still supply constraints and will be for some time, but we anticipate that substantially inflated used vehicle values will erode by 9% between now and the end of 2021.”

Manheim Market Report (MMR) prices saw weekly increases in the first two full weeks of June, but the remaining weeks saw accelerated price declines. MMR is a valuation tool used by tens of thousands of consignors and dealers to assess millions of trade-ins each month. MMR is designed to be highly stable and avoid overreacting to short-term market ups and downs while providing an accurate measure of vehicle valuations regardless of market conditions. Retail prices continued to rise, though at a slower pace, and are expected to peak later this month.

Over the last five weeks, the Three-Year-Old Index declined a net 0.7%. Over the month of May, MMR Retention, which is the average difference in price relative to current MMR, averaged 99%. The sales conversion rate, which peaked in April in the 80s, also slowed as the month progressed and ended the month at a level in the low 50s, much more typical for the month of June.

On a year-over-year basis, all major market segments saw seasonally adjusted price increases in June. Pickup trucks outperformed the overall market, while most other major segments underperformed the overall market.

With Record Prices and Tight Supply, New and Used Vehicle Sales Slow in June

According to Cox Automotive estimates, total used-vehicle sales were down 11.1% year over year in June. The used vehicle seasonally adjusted annual rate (SAAR) estimate for June is 39.0 million, down from 43.6 million last June and down compared to May’s 40.0 million SAAR. The June used retail SAAR estimate is 21.3 million, down from 23.1 million last year and down month over month from May’s 21.9 million retail SAAR.

Using a rolling seven-day estimate of used retail days’ supply based on vAuto data, the used retail supply peaked at 114 days on April 8, 2020. Used retail days’ supply was down to 41 days by the end of June, below the normal level of about 44 days’ supply.

The estimated wholesale supply peaked at 149 days on April 9, 2020, when normal supply level is 23 days. It was down to 20 days by at the end of June. Supply is expected to modestly improve but inventory levels are not likely to return to higher 2019 levels until 2024.

June total new-vehicle sales were up 18% year over year, with the same number of selling days compared to June 2020. The June SAAR came in at 15.4 million, an increase from last year’s 13.0 million but down from June 2019’s 17.2 million rate.

Combined sales into large rental, commercial, and government buyers were up 63% year over year in June. Sales into rental increased 531% year over year in June but remain down 3% in the first half of 2021 compared to the same period last year. Commercial sales gained 13% year over year and are up 27% in 2021. Including an estimate for fleet deliveries into the dealer and manufacturer channel, the estimated remaining retail sales were up 15% year over year in June, leading to an estimated retail SAAR of 13.4 million, up from 11.6 million last June but down from June 2019’s 13.6 million rate.

Rental Risk Pricing Softens in June

The average price for rental risk units sold at auction in June was up 14% year over year. Rental risk prices were up 2% compared to May. Average mileage for rental risk units in June (at 87,000 miles) was up 100% compared to a year ago and down 1.5% month over month.

To download additional commentary on the Manheim Used Vehicle Value Index from Cox Automotive, visit the Cox Automotive Newsroom.

About Manheim
Manheim® is the nation’s leading provider of end-to-end wholesale vehicle solutions that help dealer and commercial clients increase profits and efficiencies in their used vehicle operations. Through its physical, mobile, and digital sales network, Manheim offers services for decisioning, buying and selling, floor planning, logistics, assurance, and reconditioning. Operating the largest vehicle wholesale marketplace, Manheim provides clients with choices to connect and transact business how and when they want. With nearly 6 million used vehicles offered annually, Manheim team members help the company facilitate transactions representing nearly $60 billion in value. Headquartered in Atlanta, Manheim North America is a Cox Automotive™ brand. For more information, visit http://press.manheim.com.

About Cox Automotive
Cox Automotive Inc. makes buying, selling, owning and using vehicles easier for everyone. The global company’s more than 27,000 team members and family of brands, including Autotrader®, Dealer.com®, Dealertrack®, Dickinson Fleet Services®, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto® and Xtime®,are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with annual revenues of nearly $20 billion.

Media Contacts:
Mark Schirmer
734 883 6346
[email protected]

Dara Hailes
470 658 0656
[email protected]

Sign up here to receive bi-weekly updates on news and trends dominating the automotive industry.

Sours: https://www.coxautoinc.com/news/wholesale-used-vehicle-prices-peak-according-to-latest-manheim-data/

You will also be interested:

Used Car Trade In Value

How Car Dealers
Figure Trade Values


When figuring the used car trade in value dealers rely mainly of two values, neither of which is the Kelly Trade In Value.

That may make you scratch your head a bit, but the Kelly or KBB Trade Value is more for consumers looking for a ballpark, rough estimate of what their trade is worth.

Of course, there may be some dealers out there using Kelly to figure trade in values, but I've never met nor worked for one that does.

How Car Dealers Figure
Used Car Trade In Values

Car dealers typically use two sources to figure trade in values:

  1. Wholesale Blue Book Value(This is the Magic Number)
    and
  2. The Manheim Market Report (MMR)

The MMR is an auction report that averages together hundreds and thousands of vehicle sales (nationally or regionally) to help car dealers determine what they would be able to buy a comparable car for at auction.

Unfortunately for you the consumer,
neither one of these values is available for free.

When using the MMR sales averages, most dealers will add transportation costs (what they would pay if buying your car from the auction) to the auction sales average and then subtract the expected reconditioning costs from that figure.

Car dealers use both of these values
as sort of a checks and balances type of system.

For instance, if they've found that the KBB Wholesale Value is $10,000 and that the MMR is reporting the average sale price to be $11,200 then they will probably use a percentage off of the KBB value to value your trade and might start by offering you $8,000.

Even though they may start at $8,000, they know that they have some flexibility here and could probably give you real money of $10,500 if that's what it takes to make a deal.

On the other hand, if the Wholesale Value is $10,000, but the average auction sale price is $6,500 then they would probably not want to put anymore than $7,000 into your trade.

How I Do It
I personally don't care to use the MMR to figure used car trade in values, but do reference it, because my dealer requires me to.

Usually, what I like to do is figure the KBB Wholesale Value and shoot for a 20% discount, knowing that I may pay up to the full wholesale book value if it's a nice car that I feel will sell fast.

I also want to be sure it will get through the service department without any major repairs.

If the car has more than 100,000 miles I shoot for an even higher discount, like 30-40% off of KBB Wholesale, sometimes even higher. This is due to the difficulty in financing high mile cars.


How Does This Affect
Your Used Car Trade In Value?

This page was meant to be more informational than educational unlike the other guides for figuring dealer cost and maximizing your trade in value, but if there are two things to take from this page they would be:

  1. Don't accept their first offer for your trade! There is almost always more money they are willing to pay.
  2. If you want top dollar for your trade in ask for it, in fact...Demand It! However, in order to do this you are going to have to show the dealer that your car is worth all the money.

You'll do this by making the car appear "front line ready." If the dealer sees that your trade is going to sail through the shop with limited repair bills and is pretty much ready to go straight to the front line and up for sale, then they are more likely to give you top dollar.

Make it "front line ready" by detailing it, servicing it and replacing tires if needed. Don't go overboard with these costs, do just enough for the dealer to feel that it's well maintained and a clean car. Most dealers used car inspections take all of a few minutes and your trade ins first impression will mean a lot.

Now that you've learned how dealers figure your
used car trade in value, what would you like to do next?



Or you can...

Master all the KBB Used Car Values by returning from -
Used Car Trade In Value to KBB Guide

Return from Used Car Trade In Value to Insider Car Buying Tips home

Sours: https://www.insider-car-buying-tips.com/used_car_trade_in_value.html


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