Eighty percent of car buyers are using the Internet to research cars and used car prices. For vehicle research, the Internet’s great! For vehicle prices, the Internet sucks! It sucks because the prices do not reflect reality for the buyer or the seller. Web sites that place values on vehicles have created more confusion than ever.

“My car’s worth $25,800.” “I looked up used car prices on the web and my vehicle’s worth twenty grand.” I hear quotes like these everyday. I wish, for the customer’s sake, that the values are real. By “real” I mean a viable number according to market value.

As hard as it is to accept, even for me as a dealer, what we think a car is worth, and what it’s actually worth according to “market value” is often drastically different.

To find a vehicle’s value the context must first be discussed. What’s context?

Context includes, but is not limited to:

1) Vehicle condition: mileage, maintenance, 1-owner…etc 2) Desirability: new model, special editions, just plain cool… 3) Seasonality: plow trucks, convertibles, 4-wheel drive…etc 4) The Economy: factory incentives, gas prices, hybrids, SUVs 5) Location: Beverly Hills versus the Bronx

Now, each of the above context variables could easily have several sub categories. For example…

Vehicle condition is extremely relative. One person may think there vehicle is perfect, someone else states it needs $1000 worth of work.

Desirability is also relative. A bunch of very cool bells and whistles may not add any value, or it may add $1000’s.

Seasonality is relative. A convertible in the summer has more value than one during a Chicago winter. A plow truck in June will have significantly less value than in November in the northeast.

Economic recessions, exorbitant gas prices, combined with manufacturer incentives can shift new and used car prices all over the map.

Location has a major effect on used car prices. A convertible in California is worth more than one located in Canada.

To summarize, context funnels down to market value. Web sites such as Edmunds, NADA, and Kelley have drastically missed this mark, creating a host misinformation. To be fair, these are great research sites, but they can not be the final say on price.

Stating that a vehicle is worth a certain amount of money based on a web site’s data does not take the above factors into account. It’s a value based on misinformation.

These web sites have created an aura of trust when in actuality, the values are mythical. The market is the real indicator of vehicle worth—for better or worse.

What should one do? Buyers and sellers would be wise to follow the market. Check out autotrader.com, cars.com, and/or *ebaymotors.com and watch what vehicles are being advertised and sold for. While these sites are not the final word either, they’re much more accurate than web sites leaning heavily on opinion and averages.

Note: eBay used car pricing is generally wholesale. In other words, it would not be accurate to compare a wholesale-priced eBay car (which may need a significant amount of reconditioning) to a retail-priced vehicle in showroom and/or perfect working condition.

In the end, and this come straight from industry expert, Barry Roth, “Take the highest price and the lowest price you find on the Internet and throw them out. The remaining numbers in the middle is where one should wade. But don’t forget value. Price is one thing—value is the real key to a great car”

For more on used car values visit www.medwayimports.com/

When seeing advertisements involving cars for sale by the owner, you don’t have to automatically suspect. If you’re a smart customer, you’ll read the whole advertisement and decide for yourself whether or not the owner is a legitimate seller selling a viable vehicle. Some advertisements will reveal themselves as just nonsense; others will involve the sale of used automobiles by dealers. Still others will be legitimate advertisements for cars offered by owners who are giving you a great deal for their used vehicle. Again, reading carefully makes all the difference.

For example, I recently was in the market for a used automobile and decided to go for one that was for sale by an owner, feeling this to be the most effective way to get a used car at a reasonable price. I found a selection of advertisements on “Craig’s List”, an online community bulletin board. Amazingly, there were many choices for me, some of which looked great but weren’t in my budget, some of which were very affordable but lacked all the necessary parts (like the engine) and some that looked great enough to actually contact the owners and test drive the vehicles. Unfortunately, I was unable to get any response back from the owners, even after I called back and left an offer.

Unfortunately, I found ads on that site that really weren’t those for cars selling by owner but were ads that clearly came from dealers. Even the dealer’s information was listed in the ad. I didn’t think this would be a problem, however, the information listed four contact numbers, misspelled information and the same information showed up in ads for more than one vehicle. I was looking for a 1970’s Chevy truck and, in a search of over 1000 vehicles, it became obvious that the same dealer was selling many more than just one car. The same contact phone numbers and misspelled words were in each and every ad.

Personally, I think that dealer was a fraud. While the vehicles probably really existed – the photos and information were in the ad – but I could tell from the background in the photos in which the cars were shown were taken in the same place and that, unless this was a guy with a lot of vehicles, I was looking at a dealer and not just an owner trying to sell a car. This was more likely a person trying to avoid paying dealer’s taxes by passing himself off as an owner. The guy wasn’t going about it in a terribly sneaky way – using the same contact information and putting all the vehicles in the same category where they would likely get picked up by skilled and attentive buyers. As one of those buyers, I felt like he was wasting not only my time, but the time of serious buyers out there, trying to get a good deal on a car. Such behavior only serves to make the whole “used car” business look bad and it’s not good for those legitimate sellers out there just trying to sell a decent car.

You might have heard a lot about biodiesel. Biodiesel is diesel that can power up your car that is made from vegetable oils and other natural sources. It does not come from the regular crude oil that usually has to be imported from oil-producing countries.

Biodiesel can be considered a new technology, taking into account all the years consumers have had to settle for traditional diesel. Using biodiesel for your car has many advantages:

1. Biodiesel is not harmful to the environment. Unlike its counterpart, a car using biodiesel produces fewer emissions. If a vehicle uses traditional diesel, the vehicle emits black, stinky smoke. With biodiesel, the smoke becomes very clean indeed.

2. Biodiesel may not require an engine modification. Some cars can take advantage of biodiesel without the need to undergo engine alterations. Some mix 20% biodiesel with regular diesel. Doing so enables the car to benefit from the good points of biodiesel without the hassle.

3. Biodiesel is cheap. You can even make biodiesel in your backyard. If your engine can work with biodiesel fuel alone, then you really need not go to the gas station to buy fuel. You can just manufacture some for your own personal use.

4. Biodiesel can make the vehicle perform better. It is noted that biodiesel has a cetane number of over 100. Cetane number is used to measure the quality of the fuel’s ignition. If your fuel has a high cetane number, you can be sure that what you get is a very easy cold starting coupled with a low idle noise.

5. Biodiesel can make your car last longer. Because of the clarity and the purity of biodiesel, you can be sure it will not have too many impurities to harm your car. It is actually more lubrication. A car’s power output is unaffected by this type of diesel.

6. Biodiesel reduces the environmental effect of a waste product. Because biodiesel is made out of waste products itself, it does not contribute to nature’s garbage at all. Biodiesel can be made out of used cooking oils and lards. So instead of throwing these substances away, the ability to turn them into biodiesel becomes more than welcome.

7. Biodiesel is energy efficient. If the production of biodiesel is compared with the production of the regular type, producing the latter consumes more energy. Biodiesel does not need to be drilled, transported, or refined like petroleum diesel. Producing biodiesel is easier and is less time consuming.

8. Biodiesel is produced locally. A locally produced fuel will be more cost efficient. There is no need to pay tariffs or similar taxes to the countries from which oil and petroleum diesel are sourced. Every country has the ability to produce biodiesel.

Biodiesel is surely a viable fuel alternative. Moreover, it is also a sustainable fuel. Using biodiesel not only helps maintain our environment, it also helps in keeping the people around us healthy.

The production of biodiesel all over the world is now being looked upon favorably. In Europe, many biodiesel stations have been set up already. There is also a move to convert or make cars compatible with biodiesel fuel in the near future.

Biodiesel can surely change the way vehicles are manufactured and used. It is surely the best substitute right now, and everyone should consider ways to take advantage of the benefits of biodiesel.