We don’t use books. Now that I’ve spoiled the ending, keep reading if you want to understand how we actually value cars.
The question “What book does TradePending use?” is one we hear frequently, and it comes from an honest place: people thinking that car values can only come from books.
Fortunately for today’s car buyers, we don’t use books. We do five things differently.
- We look at local market data. We’re still the only vehicle valuation methodology that starts by looking at comparable vehicles for sale as close to the dealer’s location as possible. We start with a radius of 25 miles and move out from there until we find enough vehicles to deliver a value within a range of confidence.
- We measure retail “ask” prices, not wholesale values, not book values, and we don’t use hidden calculations to arrive at the value. A consumer can see the supply and demand data points used in making the calculation.
- We only look at franchise dealerships. We do not look at third parties, no big box retailers, no Facebook marketplace, no independent dealerships. This gives us the highest likelihood of presenting a value that represents reality for our customers by comparing truly front-line ready and professionally retailed units.
- We update the values daily. That’s proved really important given the volatility of prices the past few years.
- We provide estimated costs to recondition the vehicle and make it front-line ready, based upon NADA data where available, amongst other proprietary industry research.
So what? Why does this approach matter? When a person walks in holding a book value that’s not based in reality, they will distrust you and the new, based-in-reality number you gave them, not the book value that wasn’t based upon real-time, local market data. Ouch.
Frequently Asked Questions
What book does TradePending use to value cars?
We don’t use books to value cars. Our methodology relies on local market data and other real-time information to provide accurate and reliable valuations.
How does TradePending determine car values?
We start by looking at comparable vehicles for sale as close to the dealer’s location as possible, beginning with a 25-mile radius and expanding outward until we find enough data to deliver a value within a range of confidence.
What type of prices does TradePending measure for vehicle valuations?
We measure retail “ask” prices, not wholesale values or book values. Our approach ensures that the values reflect what buyers are actually paying in the local market.
Why doesn’t TradePending use book values for car valuations?
Book values often do not reflect real-time, local market conditions. Using outdated or non-local data can lead to mistrust and inaccuracies in car valuations.
What sources does TradePending use to gather market data?
We gather data from franchise dealerships only. We do not consider third parties, big box retailers, Facebook Marketplace, or independent dealerships to ensure the highest likelihood of presenting realistic values.
How often does TradePending update car values?
We update our values daily to account for the volatility and changes in car prices, ensuring you get the most current and accurate valuation.
Why does TradePending focus on franchise dealerships for data?
Franchise dealerships offer front-line ready and professionally retailed units, which gives us the most reliable data to provide accurate valuations.
Does TradePending provide information on reconditioning costs?
Yes, we provide estimated costs to recondition the vehicle and make it front-line ready based on NADA data and other proprietary industry research.
How does TradePending’s approach benefit car buyers and sellers?
By using real-time, local market data and daily updates, our approach ensures that both buyers and sellers have a realistic understanding of a vehicle’s value, reducing mistrust and facilitating smoother transactions.
