How To Properly Value A Car For Sale – Ideal Cars Desirability Guide

How To Properly Value A Car For Sale – Ideal Cars Desirability Guide


first off I’ve been using this guide for
years and it really does work by building out this guide you’re quickly
going to learn everything you need to know about the make and model you’re
looking for for this example I’m going to be looking for a 2005 or 2006 bmw m3
with the highly sought after competition package as you’ll see I first find
recently sold listings on eBay Motors so I can build out the sheet and get an
idea of what the market is actually bringing right now then I find a car
that’s available for sale and I compare it to the desirability guide for one
that has already been sold after watching this video and building out a
desirability guide for your ideal car search you’ll start to spot an ideal car
from a mile away alright enough with the talk let’s walk
the walk this is the ideal cars desirability guide we built this because
we believe that it’s an easy and efficient way that you can dissect how
desirable a certain car is versus all the other cars that are potential ideal
cars for you best practice here is to create like a Google Doc and so you can
put listing information for each of the cars that fit into the ideal car
strategies in that doc and then you can put a desirability number next to each
one and the price and you can come up with which ones are the best value now
I’m gonna go through how to come up with the ideal price for those cars in just a
second but first I’m gonna walk you through and we’ll go through a couple of
examples of how to use this desirability guide now for this example it’s going to
be an e46 m3 again you will be using it for the car that you are using the
strategies for and we break it down into five different variables condition
mileage interior and exterior color and then options condition is more of a
guide it’s not law meaning you have to for the type of make and model you’re
looking at understand like what’s excellent good and fair excellent for an
e46 m3 is gonna be something that’s close to show quality good is something
with a couple of small scratches but they can be fixed maybe a little wear on
the bolster fare is gonna be something that has some bumps and bruises mileage
constraints are based off of again the make and model that you’re looking at a
viper is gonna have way lower mileage constraints than an e46 m3 I went
through the forums and found that these are kind of the general low mile mid and
high mile type ranges for interior color again
used Google and I’d searched he 4673 interior colors and it popped up with a
couple of different forums that they had done polls on I found that cinnamon and
red were the top ones gray and black were decent interior colors for exterior
color I did the same thing and searched for best exterior colors e46 m3 found
about twelve or so colors there and broke it up into three different groups
again the highest ones are gonna be the most sought-after and easier to sell and
market versus the competition when it does come time to sell your ideal car
the last one is competition package and slick top which were two options that I
found we’re bringing a premium and again helped sell the car when it came time to
sell it and so as you can see here it’s all based off of numbers and I’m gonna
go into eBay Motors to show you how this actually works so we’ll pop over to eBay
and we’re gonna be looking up and BMW m3 and cars and trucks and we’re gonna look
go five 206 because those are the two years with the competition package and
always search from price highest and I’ll show you why in just a second so
once I search this I can see the cars that are currently available on eBay now
a filter that I love using is completed listings and the reason being is I can
see all the auction data on cars that sold and did not sell if the number is
in black that means that the car didn’t sell but if it’s in green that means it
did sell now something to note when you see a number in green but it has a line
through it like this one that means that it was a best offer that
was accepted and it’s below the asking price and so all we know is that the
number that they accepted is in between what they asked which is twenty eight
nine fifty and the next listing so that’s why we always sort by price
highest first so that then we at least can have a ballpark on what they
accepted for that car below here we see these two twenty two five convertibles
income and competition package but this one does look a competition package and
it is a great color and it was sold for twenty to five now something about eBay
reason that I don’t know if this car was sold is because there are a lot of flaky
buyers but we can still use this data to our advantage when coming up with the
ideal price and I’ll show you why cuz we did see this car on the live auction
site so what that tells me is that someone bid they ended up winning and
did not end up buying the car for some reason or another now if we go into this
listing though the thing that I like is that there’s 53 total bid so the first
thing you want to do is make sure that the car is actually a competition
package and it is what it says it is so I’m gonna go into the photos and it is
white which is a great color I’m looking at these photos and looking at condition
as well again it’s kind of a ballpark it’s not law a little bit of where on
the bolster is it a six-speed it is always use images to back up what the
seller actually says they’re selling in this case it looks like a competition
package with the wheel and it looks like it’s in pretty good shape now I want to
dig into the number of bids and this shows me how much interest there was in
the car at this price so there’s nine total bidders which is great and there’s
53 total bids at 22 five so you can see that there was a lot of action on this
car and one other thing that I need for the desirability guide is the mileage
which 90,000 okay great so let’s fill out the desirability guide and get a
number for this car so for a condition I’m gonna say it’s good it’s not
showroom with 90,000 miles on it it’s pretty tough to keep a car in top
condition most likely it has some some rock chips and whatnot so I’m gonna give
it a 2 I’m sorry a 1 there for mileage it is a mid mileage car so again I’m
gonna give it a 1 for interior it was black which is mid and then it has
Alpine white which is a great color great for resale value so I’m going to
give that a 3 and it has the competition package so that is i1 as well these are
always 1 or 0 so it’s one two three four five six it’s a seven okay and it was at
22 five great okay so let’s go back in here and see if there’s some other
competition package so we can get different variables filled out so we’ll
go back so this is not a competition package but
it is a very nice car we are looking for a competition package but if you aren’t
looking for a competition package then you could put this in your desirability
guide as well it is a great interior color Imola red which would be three
points here even though the exterior is a one pointer so again you’ll quickly
start to identify how desirable a car is and have this desirability guide in your
head it’s always nice when you go to car shows we start joking around with each
other and saying how desirable different cars are based off of the desirability
guide because it becomes kind of second nature
here is a competition package it didn’t sell though at nineteen nine if I keep
going down now here’s oh the same one okay so this
is something to note as well you can see on November 21st it sold for sixteen
seven and there’s ninety bids wow that’s awesome and then if we go back up here
it’s the same car and they did a buy it now for nineteen nine and on January
10th so again a flaky buyer they didn’t buy the car for one reason or another
but let’s look into this because it did sell for sixteen seven so we know that
that is kind of the fair market price especially with ninety bids again let’s
go through make sure it’s a competition package silver decent color interior
yeah okay looks pretty good it is a six-speed again but let’s get into this
90 bits I like that with 21 people so you can see that this car brought a lot
more interest twenty one bidders versus nine with the other and 90 total bids
instead of roughly 50 with the other so this was a hot item a lot of people were
interested in it way more than the white one and I bet you it’s because the miles
are probably higher let’s check it out yep 133 so it’s a high mile car but that
actually brought more interest which is interesting and so let’s do a quick
desirability guide number on this one so this is going to be I’m gonna give it a
good condition okay so it is one but it’s high mileage so it gets zero point
here for mileage it was black interior so we’ll give it one and it is just a
silver gray so we’re gonna give it one again and it is a competition package
okay so then it’s one two three it’s a four okay and it sold for sixteen seven
okay excellent so now we can see here that we have two use cases we have one
that got a seven and it went for twenty two five again that number because there
is so much interest in the car roughly that car is worth twenty two five and
then this one had a four on the desirability guide and it went for
sixteen seven again because of the interest I believe that that car is
worth roughly that so what’s awesome about this is that then you can start
going through and finding out what the ideal price is for a car based off of
this hard data because you know how much the car is roughly worth so to show you
guys how we can use all of this data to our advantage I’m gonna pull up a
listing that I already found on a car it’s a 2006 BMW m3 and it’s a great
color and it’s black interior ninety-eight thousand miles and it is a
six-speed so if we go back to the desirability guide we can start filling
out this one that we found on auto trader in condition let’s say it is good
by good condition so we’ll give it a one mileage is 98 so it is a 1 and it’s
black interior which is one but it is Interlagos blue which is a three and
it’s a great color to resell and it is a competition package so we’re going to
give it one extra point for a grand total of one two three four five six
seven okay now what’s great about this is that we have hard data here we have
this car that went for twenty two five and it’s a seven we have hard data that
this car was a four and it went for sixteen seven and this is the beauty of
the desirability guide because now all the sudden we found this car that is
listed for 17 9 nine five now again the car news
get a PPI done on it and you have to vet the seller and go through the whole
selling process because I believe there’s still room on the table we can
get this car below seventeen nine nine five using some negotiation tactics that
you’ll learn later on but ultimately this car listed at eighteen thousand
dollars already looks like a killer deal because we know that in number seven
that had a same great color and it had the same middle tier interior and it had
mid-ground mileage and in the same type of condition went for twenty to five so
this is the power of the guide and the strategies because now all the sudden we
know that this car the ratio between price and desirability is a lot better
than the one here that sold for twenty to five so this is a car right here an
ideal car that if we could buy it for sixteen sixteen five we would be able to
drive that car for a couple of years and sell that car for eighteen or nineteen
depending on what the market is doing so this is the ideal cars desirability
guide again you fill out all this information and you should know this
like the back of your hand and when you start using this enough the ones that
alert the ideal cars that the ideal prices will really stick out to you like
this one does so I just want to reiterate what you first want to do is
fill out the ideal cards desirability guide for completed and sold listings
you can find this data on either sold listings for eBay bring a trailer and
I’ve actually had a lot of success emailing and DMing people that have for
sale ads that are now sold and asking them if they could let me know how much
they sold their car for more often than not believe it or not I get an email
back with the price that they sold it at that’s great data to use in the
desirability guide so once you start building these out share your built
ideal car desirability guides with the private Facebook group there will be
other members in there that will be able to help you out and discuss your
findings and if you haven’t already joined the group its super easy just
search ideal car strategies on Facebook answer a couple of quick questions and
you’ll join others that have gone through this curriculum just like you
alright if you liked this video you’re going to love the beginning of module
four or I teach you how to properly locate and inspect potential ideal cars
so check it out here and if you need to take a break
watch what YouTube recommends here oh and if you haven’t subscribed
right here baby but either way you can’t lose and as always keep living that
ideal lifestyle