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

165

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

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

Mazda MX-5 Miata Experts

  • #1
    Michael Kane
    Reputation
    2,090
  • #2
    Tom Demyan
    Reputation
    1,240
  • #3
    Racer_X
    Reputation
    390
View All

Related Models For Sale

Used Ford Mustang
584 Great Deals out of 38,990 listings starting at $1,895
Used Chevrolet Corvette
171 Great Deals out of 17,497 listings starting at $3,000
Used BMW Z4
59 Great Deals out of 994 listings starting at $3,700
Used Porsche Boxster
47 Great Deals out of 1,288 listings starting at $4,500
Used BMW 3 Series
1,115 Great Deals out of 32,620 listings starting at $1,200
Used Chevrolet Camaro
444 Great Deals out of 31,345 listings starting at $1,450
Used Nissan 370Z
81 Great Deals out of 2,779 listings starting at $8,495
Used Mazda RX-8
8 Great Deals out of 377 listings starting at $2,000
Used Honda Civic
791 Great Deals out of 60,318 listings starting at $950
Used Porsche 911
121 Great Deals out of 5,129 listings starting at $10,947

Used Cars For Sale

2017 Mazda MX-5 Miata For Sale
4 Great Deals out of 2,366 listings starting at $19,995
2016 Mazda MX-5 Miata For Sale
10 Great Deals out of 482 listings starting at $15,295
2015 Mazda MX-5 Miata For Sale
9 Great Deals out of 120 listings starting at $14,400
2014 Mazda MX-5 Miata For Sale
4 Great Deals out of 74 listings starting at $13,199
2013 Mazda MX-5 Miata For Sale
3 Great Deals out of 101 listings starting at $10,888

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.