Edmunds.com is adding a used-car appraisal feature to its Web site.
Starting Monday, Nov. 6, Edmunds.com will expand its True Market Value Pricing feature to include 1990 models and newer used vehicles on the site, said company COO Jeremy Anwyl.
Edmunds.com launched True Market Value Pricing for new vehicles in June. It enables users to obtain either a national Edmunds.com price for a vehicle or a regional price that factors in incentives.
Anwyl said the feature was designed for consumers, but he has learned that dealers find price information useful, too. For instance, Edmunds.com True Market Value Pricing for used vehicles will be on a variety of Web sites, including Manheim Online, a dealers-only site.
'Manheim is using this so dealers can know what the car can retail for,' Anwyl said. 'We did all of this from the consumer perspective, but there are a lot of reasons dealers will want access to accurate pricing as well.
'When they go to the auction, they bid on a car from retail (price) down. They say, `I can sell the car for $10,000; it needs $500 in recon (reconditioning), and I want $1,500 in profit, so my top bid is $8,000.' '
Anwyl said True Value Market Value prices also could be used by dealers and consumers as an online benchmark for trade-in values.
He said the Santa Monica, Calif., online referral site gets 2.5 million to 3 million visitors a month. About 50 percent of the visitors want information on new vehicles; the other half wants used-car information. Prices are the No. 1 reason people visit Edmunds.com, Anwyl said.
The pricing feature is free to consumers and to dealers that want to add the feature to their Web site. The prices are updated weekly. Edmunds.com, which makes money by referral fees from online car-buying services and other links to its site, hopes the feature will bring another 1 million or more visitors to the site each month.
Anwyl said the company's database contains 15,000 individual prices and functions that enable a user to add and deduct amounts based on options and mileage.
The database is region-sensitive and the only one that takes vehicle color into consideration, Anwyl said. 'For instance, black cars do well in New York but not well in Phoenix,' he said.
Edmunds.com's formula for used-vehicle prices uses virtually every factor that affects used-vehicle prices. Users who give vehicle details including year, make, model, style, mileage, color, optional equipment, condition and their ZIP code will get three prices: trade-in, private party and dealer retail.