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    Our Accurate Cars Blog is here to inform our customers about our Honda and Acura Used Car business and our Honda and Acura Car Repair business. This is where any visitor to the Accurate Blog can ask questions and respond to any Blog entry. Thank you for visiting and we look forward to hearing from you.
23
Oct

Accurate Auto Sales Equation for Establishing Honda and Acura Car Sales Values

Save money when buying your next pre-owned Honda or Acura automobile by using this simple but effective equation to determine the true value of the vehicle.

Accurate Auto Sales, which is a part of Accurate Automotive, owns the website www.accuratecars.com and is considered by many to be the best place to buy pre-owned Honda and Acura automobiles in Nashville, Tennessee. Accurate’s pre-owned Honda and Acura inventory has been noticed by many Internet shoppers, to not only be competitive in price, but superior in quality, when compared to the franchised dealers’ “certified used cars”. In addition, Accurate’s used car inventory of Honda and Acura vehicles, usually come in at a lower cost than any other legitimate dealer or private party seller…..How do they buy their Honda and Acura inventory, service them, detail them and sell them for less?

Our Inventory Purchaser writes,

“While I do not advise using this equation past a 7 to 10 year old Honda or Acura vehicle or in ridiculously excessive mileage amounts for the age of the vehicle; simply evaluate the Honda or Acura that you are looking at as a machine and the mileage as pro-rated usage.”

In our example, let’s take a pair of 2005 Honda Pilot EX-L units with Navigation. One of the units has 30,000 miles on it and the other has 75,000 miles on it.

First of all, use a 200,000 mile life. This 200,000 mile scale is for evaluation purposes only and is not representative of the true life expectancy or actual cost per mile. The reason that the actual cost per mile is different is because the equation below would result in the vehicle being worth zero, once the odometer reached 200,000 miles.

Originally these units had a retail cost of:

$34,320                divided by 200,000 miles             equals 17.1 cents per mile

and a dealer cost of:

$30,871                divided by 200,000 miles             equals 15.4 cents per mile

For every year of age, the cost per mile should depreciate 1 cent, so a 2005 model vehicle should depreciate from 17.1 in 2005, to 13.1 cents per mile in 2009.

Based on a four year old vehicle and the dealer retail cost per mile, the maximum retail value of the unit with 30,000 miles in 2009 would be

170,000 miles (which is 200,000 miles minus 30,000)

x 13.1 (price per mile (1 cent annual deduct per mile)

This equals                   $22,270

The same vehicle with 75,000 miles on it, using the same equation is worth   $16,375 (look below)

Subtract 75,000 from the original 200,000 mile, which would be 125,000 miles x 13.1 cents per mile. Which equals     $16,375

As we all know, the internet is a very good assistant in helping the consumer with the purchase of a used car. However, the evaluation of vehicles through Kelly Blue Book (KBB), NADA, and Edmunds can be very confusing and extremely inaccurate. The reason is because the numbers that represent retail price, and private party values are simply based on an average asking price that like vehicles are being marketed for, in certain regions. While this may sound reasonable, it is largely dependent on enough like units being in the market with the same mileage;  to provide an accurate average price.

In closing: Since 1997, Accurate Automotive has always excelled in providing good quality repairs & maintenance and great customer service for a fair price, to their patrons that own Honda and Acura vehicles.  In August of 2004,  when Accurate Auto Sales began selling used cars, the owner (who is the same guy that owns Accurate Automotive), was adamant on continuing the tradition of good quality and fair prices.

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