TrueCar Values

What's the deal with the over-inflated TrueCar market values for used vehicles? I was browsing Infiniti M35 sedans on CarGurus last night, then again on some TrueCar sponsored site and the prices listed were about $1,500 to $2,000 more on average, and all of them said "Good Deal". I checked Kelley Blue Book and the blue book values were more in line with the CarGurus prices. Is this some ploy by car dealers to pool together and over inflate vehicle prices to get more for the vehicles they sell? For example, this TrueCar site had a 2008 Infiniti M35 with 70k miles listed for $18,000 and this was shown as a "Great Value" and on the low end of the TrueCar bell curve. I checked KBB and the average market value (good condition from a dealer) was listed as $15,500 with a low retail of $14,600.

 

Personally I think it's just a sales gimmick. Just for giggles I did an autotrader.com search and for that make/model/year and under 75k miles the average price (asking) is $17,444 with high and low of $24,495 & $13,995. A lot of them had well below 70k miles.

 

Dealers use KBB to determine how much to OFFER for your trade-n, but TrueCar to set the selling price of the replacement.

Oh--and insurance companies routinely use KBB so they write the smallest check possible for a claim.

 

Actually Black Book is used for values. That's why you can find it in any bank.

Is anyone seriously considering pricing based on KBB? My son just sold his 2004 Scion for $7K cash while it was listed at $5+K on KBB and every dealer had them around $9K.

MARKET determines pricing, not "books". Any item for sale on a market is worth what a buyer is willing to pay for it. No more, no less. That's why I stay firm - craigslist private sale is best gauge.

 

KBB values are based on recently sold vehicles within a particular zip code, are they not?

 

I've noticed that CarMax does the same thing. They over inflate the price then call it a "No Haggle" price, like that's supposed to make me feel warm and fuzzy. To me that means no room for negotiating. They are listing an M35 for $1,800 above market and nearly $3,000 above KBB.

 

But you don't have to haggle!!!