The true value of a car is often a moving target, as a number of different variables are involved, including its condition and where it’s located. Noted auto website Edmunds.com attempts to factor these variables into a "true market value" figure that is based on actual regional sales data.
While all new cars come with a Manufacturer's Suggested Retail Price, or MSRP, that is not the set price of a car. Daily sales figures for a particular car may be above or below the MSRP. Edmunds.com aggregates these sales figures and applies a proprietary mathematical formula to calculate a "true market value" that reflects the real price that a particular car is being sold for in your area.
Using the Edmunds website, you can find the TMV of either a new car or a used car. To find a car's TMV, you'll need to provide detailed information about the car. Your first step will be to enter the car's make, model and year, along with your zip code. From there, the process varies slightly depending on whether you are pricing a new or a used car. For new cars, you can simply tick off the boxes corresponding to the car's color and options. From there, the Edmunds TMV calculator will give you the car's invoice price, MSRP and TMV. For used cars, you'll have to provide additional information about the car's mileage and condition, which can range from outstanding to damaged. For used cars, Edmunds provides TMVs for trade-ins, private party sales and dealer retail.
As a buyer, the Edmunds TMV can be a very helpful place for you to start negotiating the price of a car. Since the TMV is based on actual sales data for your area, it's a starting price that most dealers will recognize as reasonable. Showing up at a dealership with a TMV in hand will also demonstrate that you're serious about buying and have done research into your car.
As a seller, the TMV price is by definition reasonable since it reflects real-world sales prices. Since you obviously want to get the best price you can for your vehicle, you might want to set your sales price above the TMV. However, you can expect to receive more offers with a price closer to the Edmunds TMV.
