How to Use TMV

Edmunds.com

How to Use TMV

Edmunds.com's True Market Value (TMV) is a powerful tool for car buyers and sellers. Here's how to use it to get a great deal on a new or used car.

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digitalcarguy

As a 20 year or so professional I have found no matter what the product you are selling may be, people want to be treated fairly. Selling cars is really about relationships, whether you are the buyer or seller. I agree with having the information and using it as a tool.
We are all humans and people react differently to aggressive behavior, with that said I believe that people like to do business with like kind and like mind people.
In addition profit is not a dirty word, in order to stay in business, no matter what business it is, you must be profitable to STAY in business.
I have found that most people want to be treated fairly and professionally.

puffin1_

what if you have a trade

kpatter3

how does a trade in factor in? Should I negotiate for TMV then present the trade in?

philip17

People often suggest negotiating the new car first (using TMV as a guide) and then introducing the trade-in only after the new car price is set. Usually, you don't have to be that secretive. But you should use TMV as a guide for both new and used.

Getting your price on the trade-in is tougher than reducing the price on the new car. If you are very price sensitive, get multiple quotes on the trade-in first. But keep you eye on the big picture rather than just one component.

pgatz1

What I've always been confused about is, does the TMV include taxes, & extra fees at the end? Or is the true market value the car only? If so, how much over TMV should you pay for all the extra fees?

henry4hire

Hello....
Edmunds TMV does not include any type of taxes or fees. The video in this link will help explain it. http://www.edmunds.com/car-buying/how-to-use-tmv.html

The taxes and fees are not included because they vary greatly from state to state and even city to city. A basic rule of thumb is to add 3% to the price for all the fees and associated cost. For example of the car cost $10,000 you would add the tax (about 9% here in California) plus 3% to make 12%. In that scenario the extra cost comes out to $1200 for a grand total of $11,200.

That gives you the "out-the-door" price. I hope that helped!

jmcole5

how would it work with employee discount? i'll get a employee discount through nissan. say the tmv is 20,000 would i go in with that in mind then take tell them about the discount after we negotiate a price? or do i say something up front.

billy3554

I do think this article leads potential buyers somewhat to a wrong conclusion. While the article does identify the true value of Edmund's TMV it does not emphasize this value. I have used TMV numerous times, and I am grateful Edmund's provides TMV. However, I think the true value of TMV is it is an "average" price paid. The article states TMV is the "exit point for price." Rather, I think shrewd buyers will find TMV to be the entry point for price knowing full well half the buyers were able to beat the TMV price.

jimmyp4

I'm a big fan of TMV, and use it to set a market ceiling on price. But the key in any car purchase lies not in negotiating the price you will pay. The key is to negotiate the profit that the dealer will make. That shifts the pressure to the dealer to validate their profit margin on the vehicle. The challenge in this approach is to have a realistic sense of true dealer costs, including holdbacks and special incentives that lower the dealer's cost below the invoice. This approach is not easy, but can produce significant savings. Using this approach and being the last customer in the showroom on the last day of the quarter negotiating with a dealer that needed to sell one more car to hit a holdback threshold, I bought my 2010 Altima all-in (price, taxes, fees) for 19% less than the MSRP.

jaycars

the TMV calculator page doesnt seem to be working this morning 5/5

kenforce

I am eligible for the Ford "X-Plan" also known as the Partner Recognition Program. Would the TMV be a useful tool for me or would the X-Plan give me the best price?

abstraktmind

I have a question: I want to buy a 2010 Buick Lacrosse AWD: It was loaded. Dealership wanted 20,600. I wanted to pay no more than 19,500. The TMV came out to 23,000 making this actually a good deal. Should I except 20.6 or hold my guns?

kwethington1

My wife and I have used EDMUNDS.com, including TMV, to buy our last four vehicles, two each, and two more cars for our college age daughter. In each we used EDMUNDSCOM and its TMV and received more relevant information than we found elsewhere, including and specifically, Kelly Bluebook.

Kelly Blue Book's ownership is, closely held but at least partially purchased by dealerships a couple decades ago, to counter the losses of income that access to the true costs and markups, and advertising money, and dealer bonuses and discounts that the KBB gave the customer, before they made a purchase. Consequently, afterward, Edmunds became a most honest assessment of true value and true dealership costs, bought it, ergo the current difference between EDMUNDS and KELLY BB with Kelly having the higher retail and lower trade-in and owner self sell values posted.
Edmunds TMV as well as all the other tools and information the make available t the customer or prospective car/truck owner selling their own vehicle, available, have helped us save thousands on some and at least $500 on each, that otherwise we may have paid.

I love this site, and I buy their book at Barnes and Noble more often than not in the months before I buy and sell. Just knowing what is really going on is helpful psychology because salesmen can sense fear and insecurity. So, thanks edmunds.com. You are helping people get a good deal and helping the industry overall, because a prepared buyer will eventually force most of the old style, hard sell, lying and changing numbers after agreeing to a price, to take the buyer for everything you can, lIn Maryland for example, Antwerpen in general and Antwerpen Dodge's reputation in particular, was so bad, they had to move to another location.

Thanks Guys! You are the best! Please keep up the great work.

kermit007

When dealing with automotive salespeople there are occasions when a price is listed on the internet and this price; Is the Price & ONLY the Price, which means there is NO Negotiation. Mind You, I suggest you bring in a copy of the print out that the vehicle was listed on the Web to get the BEST PRICE. IT is LIKE PURCHASING SOMETHING "ON SALE" seriously has anyone ever purchased a TV or electronic item or Furniture that was on SALE; LISTED AS ONE PRICE, and left the the store with it cheaper than the Sale price. It is basically the same thing with an Automotive purchase; As Long As You have the Web Print Out in your hand before the deal has begun.

stephendc

kermit007 said:

When dealing with automotive salespeople there are occasions when a price is listed on the internet and this price; Is the Price & ONLY the Price, which means there is NO Negotiation. Mind You, I suggest you bring in a copy of the print out that the vehicle was listed on the Web to get the BEST PRICE. IT is LIKE PURCHASING SOMETHING "ON SALE" seriously has anyone ever purchased a TV or electronic item or Furniture that was on SALE; LISTED AS ONE PRICE, and left the the store with it cheaper than the Sale price. It is basically the same thing with an Automotive purchase; As Long As You have the Web Print Out in your hand before the deal has begun.

Sort of tired of hearing this misperception about how car buying is just like every other good (no, I don't bargain the cost of TVs, dinner, groceries, etc). They're not even remotely the same. For one thing, the cost of a TV is usually the same wherever you buy it, cars vary wildly depending on the dealership. But that's not even the main reason it's a poor comparison. Let me ask you this: when you go to a local electronics store to buy a TV, do they try to sell you a million add-ons or packages (e.g. this TV was polished with X, or "you absolutely have to have the extended warranty," etc). No, of course not. The car buying industry is very different from every other industry. It's just about the only area (apart from homes) where you DO have the choice to bargain. Actually, since you bring it up, I wish MORE industries were open to bargaining, Americans might save a lot more money. So the fact that other businesses force you to "take it or leave it" isn't a reason for expecting that to happen to cars.

stever

It's rare, but I have bargained for discounts on groceries (a case of catfish to be exact) and have asked department store managers for discounts (usually on a scratch and dent or open box kind of item). And yeah, few people expect to pay asking price for a car.

Lots of stores make a lot of money selling you extended warranties on consumer electronics. Best Buy is hurting because more people decided they weren't worth the money. (bizjournals.com) A mop and glow special for your big screen TV would be a bit of a stretch, lol.

alter

Good to know, thank you.

alter

let's get going!

jayyycarrillo

Hello, I just turned 20 two months ago and want to buy myself my first car. There is this used 2009 Honda Civic for sale and I want to get it! I have good credit and I'm looking into getting my own financing through my credit union, I'm just really nervous to go talk to the dealership people because I know that they try their best to kinda screw you over. The car is listed for 10,800 but Kelly blue book says a good price is around 6,700. I want to try and get them to at least go down to 8,500 do you think its do able, what advice can you give for a first time car buyer? thank you in advance!

Djea3

KBB is the "book of lies". IN fact if one reads the actual information inside KBB one finds that KBB admits that their "suggested values" have NO RELATIONSHIP to actual statistical sale values. In other words it is a book that describes what the DEALERS would LOVE to get as a value (like the black book of wholesale values for dealer purchase really). Since KBB admits that their listed values are not based on any reality or statistical value then they are FRUAD on its face.
Edmunds however (at least the last time I read the information) states that ALL of its values are based upon averages of actual state and local taxes paid for the purchase price. This means that the dealer retail prices listed in Edmunds are CORRECT and statistically provable. Edmunds even values by geography which in todays market is a little odd. If I can save 2000 at purchase and ship for 1000, I saved money at purchase plus taxes!
Thank you Edmunds for honesty.