Cars Advertised At Up To Double Their Real Value
Published: 28th February 2005
Analysis of a random sample of 50 popular models advertised privately found sellers over-pricing their vehicles by almost a quarter, with an average asking price of £1,716 over the recommended ‘book’ price. The biggest discrepancy came from a Mercedes E-Class with £4,360 on top of the industry recognised value.
Other excessive prices include a Renault Megane at 104% over value, a Fiesta at 78% and a Peugeot 307 at 72%. Whilst supermini owners advertise their cars at nearly 25 percent more than they should, buyers of MPVs and prestige cars could be paying over £2,000 more than the real market value if they pay the full asking price.
Table of average price differences between asking and ‘book’ by vehicle marques:
| Vehicle type | Average price over-estimation |
% increase of asking price
against value |
| Super-mini | £988 |
24% |
| Family hatch | £1,966 |
35% |
| Large family vehicle | £1,194 |
22% |
| MPV | £2,128 |
23% |
| 4x4 | £1,862 |
20% |
| Sports car | £1,330 |
12% |
| Prestige | £2,550 |
19% |
| Average | £1,716.86 |
22% |
None of the vehicles monitored were valued at, or below ‘book’ price, with a Renault Clio closest to the mark at only £200 over its £6,300 recommended price. "Although sellers can expect to counter the ‘haggle factor’ of a buyer by adding 10 percent to their target price, more than that can put potential buyers off," explains Cardata marketing manager Andrew Sobell.
"Too many people either guess or are being too greedy," says Sobell. "You need to do your homework, and research a fair and accurate price - just as you would if you were looking to buy. Check price guides to ensure you are not over-pricing your car. If there is a seller with a similar spec car £1,000 cheaper, potential buyers are more likely to pay them a visit than you."
In the majority of cases, prices advertised failed to reflect the number of miles on the clock - a factor that can have a dramatic effect on the value of a vehicle. For example, mileage adjustment on an expensive high-mileage luxury car may be ten times greater than for the cheapest supermini.
To maximise the best price for a car, Cardata also advises motorists give an accurate and fair description of their vehicle.
"Many of the vehicles we checked missed basic details, such as the model type or engine size, let alone the paint finish, any extras and other benefits which will all have a knock-on effect on your asking price. Without these details in your ad, buyers are unlikely to be encouraged to enquire about the vehicle," Sobell added.
