Instant market price and what it means

Asked by Jul 19, 2012 at 02:48 PM about the 2011 Mazda MX-5 Miata Grand Touring

Question type: Shopping & Pricing

If you list the depreciation of cars (i.e. Mazda Miata as $9500 first year, then about $1500/year
thereafter) how is it that you have a instant price which does not reflect this?  In most of your ads, the
price stated by the dealer (nearly $22,000 for a 2011) is way above the depreciation rate??  Your
instant value is therefore far higher than your researched and proposed actual depreciation of the car.  
This ends up supporting higher asking prices for the dealers and works against the consumer.  So, for
the Miata, if the list of the car was $27000 in 2011, it is now at least one year (soon to be 2 years
out), the depreciation should be $9500 + $1300, so the instant value should be on the order of
$16,000, not the $22,000 that you show.  What's up?

2 Answers

135

Dealer Profit = Purchase Price - (Cash Price Paid for Vehicle + Reconditioning and Inspection Costs). KBB.com is a good resource to find out what finance and insurance companies use to determine a vehicles value (blue book value), but to determine what the actual cash value (what a dealer paid or will pay) I would suggest Edmunds.com (black book value). The instant market value is based on the average price for a particular vehicle listed on the internet. Dealerships and individuals are allowed to list vehicles at whatever price they choose to, price is ultimately determined by what the purchaser is willing to pay. In this equation emotion is the dealership's greatest ally and the consumer's worst enemy, if you fall in love with a car chances are you will wind up paying more for it.

2 of 2 people found this helpful.
80

This is the best answer I have seen to this question. I had always assumed (yeah I know) that instant market value was based on what the cars were selling for, not what the dealers decided to list the cars for. This puts a whole new light on things, especially since the dealers pay car gurus every time they get a contact though the cargurus website. Found out about this in a Newsweek? article. So this site is more about helping dealers than it is about helping buyers.

1 of 1 people found this helpful.

Your Answer

Add photo

Related Questions

Get More Money for Your Car
Be seen by 20 million shoppers. Create Your Free Listing

Search Mazda MX-5 Miata Questions

Mazda MX-5 Miata Experts

#1 Michael Kane
Michael Kane
Reputation 2,030
#2 Tom Demyan
Tom Demyan
Reputation 1,230
#3 Racer_X
Racer_X
Reputation 390
View All

Related Models For Sale

Used Ford Mustang
740 Great Deals out of 42,668 listings starting at $1,300
Used Chevrolet Corvette
257 Great Deals out of 22,284 listings starting at $2,500
Used BMW Z4
54 Great Deals out of 1,047 listings starting at $3,900
Used Chevrolet Camaro
429 Great Deals out of 31,674 listings starting at $2,395
Used BMW 3 Series
1,047 Great Deals out of 31,468 listings starting at $1,000
Used Porsche Boxster
47 Great Deals out of 1,125 listings starting at $3,995
Used Nissan 370Z
70 Great Deals out of 2,642 listings starting at $9,499
Used Honda Civic
830 Great Deals out of 78,168 listings starting at $900
Used Mazda RX-8
11 Great Deals out of 353 listings starting at $1,499

Used Cars For Sale

2017 Mazda MX-5 Miata For Sale
3 Great Deals out of 2,169 listings starting at $23,549
2016 Mazda MX-5 Miata For Sale
7 Great Deals out of 654 listings starting at $17,433
2015 Mazda MX-5 Miata For Sale
7 Great Deals out of 116 listings starting at $15,450
2014 Mazda MX-5 Miata For Sale
4 Great Deals out of 94 listings starting at $13,499
2013 Mazda MX-5 Miata For Sale
9 Great Deals out of 94 listings starting at $12,000

Content submitted by Users is not endorsed by CarGurus, does not express the opinions of CarGurus, and should not be considered reviewed, screened, or approved by CarGurus. Please refer to CarGurus Terms of Use.