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Ask HN: How does used car pricing work?
1 point by saimiam on Oct 22, 2021 | hide | past | favorite | 3 comments
My wife and I are in the market for a used car and I’d like to get some understanding of how used cars are priced so I (hopefully) pay a fair price instead of getting fleeced.

Edit1 - not in the US but in a country with a relatively mature used car market where the ratio of used cars sold to new cars is 1.5:1. In comparison, the US has a ratio of 4:1.



https://en.wikipedia.org/wiki/Kelley_Blue_Book


I’m aware of kbb but I neglected to mention that I’m not in US so the car brands we are looking at will probably not the covered by kbb.

I wanted to see if anyone knows what goes into an entity like kbb saying that a certain used car is fairly priced at X.

E.g., we looked at a year old used car with around 7500 miles on it. It was priced just 7% below the price of a identical new car. The first year depreciation curve of a new car says the sale price of a one year old used car should be 20% below new.

I’m wondering if HN can help me figure out whether the dealer’s 13% (20%-7%) is reasonable or has some wiggle in it.


If new cars are scarce then the price of used cars is going to get crazy high.

In the US I see ads for car dealers that don't (as they usually do) list any inventory. Many of them advertise that they have trucks but don't say anything about cars. For this reason

https://en.wikipedia.org/wiki/Chicken_tax

US carmakers will stop making cars and only make trucks if they can at all get away it.




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