How much of a factor is dealer reputation when determining market value?
Asked by Dee Nov 29, 2020 at 05:16 PM about the 2017 BMW i3 94 Ah RWD with Range Extender
Question type: Shopping & Pricing
How much of a factor is dealer reputation when determining market value and
can I determine the fair market value range for a particular year and model of
vehicle?
3 Answers
I doubt dealer rep has anything to do with value. It has everything to do with buying from them or not.
Probably not. But most used car dealers get their inventory from the auto auction. They usually buy a block or lot of vehicles at one time. They don't know anything about the vehicles that they buy. They detail them to make them look pretty, do minor repairs, and put them on their lot for sale. The problem with this is most auction vehicles are trade ins from new car dealers that are either too old to be put on their used car lot, mechanically unsound, or have a jaded past. It's always a bigger gamble to buy from a used car lot than a new car Dealer's used inventory. But there are new car dealers who get their inventory from the auction as well, at least some of their inventory. So it's always important to take the Dealer's reputation into account when thinking of buying from them. If your friend got a clunker from there, you probably will too! Hope that helps! Jim
Reputable new car dealers auction off all the junk and only keep the very best to resell. I think it is a measure of a new car dealers reputation if they sell cars they bought at auction. Obviously used car dealers sell nothing but auction cars. I probably would never buy a car that was auctioned off.