What Effect Did Recent Price Changes Have on Resale Values? ??

Ford lowered the MSRP of the F150 Lightning by up to $10,000 on Monday. So what is the best appraisal source to provide an accurate value? ??

Some may remember October of 2022, when Tesla lowered the MSRP on some vehicles. I definitely remember it. Dealers were calling me asking why AccuTrade (A Cars Commerce Solution) appraisal values were so far off ($5,000 to $20,000) of the other valuation guides and tools. (see image below).

And now we see similar leading and lagging indicators are affecting other EV's, as we saw with Tesla vehicles in Q4 of 2022. So what should you be looking out for in today's used vehicle market as a dealer?

The first thing to keep in mind is that the pricing announcement was three days ago on Monday. Most guidebooks or used vehicle valuation tools are based on averages of vehicles that have been recently sold. Sold includes retail and wholesale transactions. Retail sold units, along with available inventory, determine the Market Days Supply (MDS) over a forty five day time period.

The question is, how long will it take for the transactional data to catch up to what is going to happen in auction lane this Thursday and Friday?

And what happens when the market is changing abruptly? In the case of the Ford LIghtning price change, the current Market Days Supply for a 2022 Ford F150 Lightning today was 152 days, and 130 average Days On Market (DOM). One problem with these numbers is that most dealers have a goal to avoid having any used vehicle aging over 60 days old. The other metric that is not shown in the above image is not how many vehicles HAVE recently, but more importantly, how many vehicles HAVE NOT recently sold at auction. (No Sale %). The auction average represents an average of what DID sell. But shouldn't the average of the vehicles that DID NOT sell affect other guidebooks or appraisal tools? - asking for a friend.

There is no doubt that it is challenging to place an accurate value on vehicles with wild pricing swings, high MDS & a high average DOM. At least until there is a decent amount of transactional data (10 transactions or more). Many (if not all) of Accu-Trade's competitors are not currently willing to place a guaranteed value on a vehicle like this immediately using their software. Accu-Trade adjusted these guaranteed online values an hour after the price announcement from Ford.

You can always "self-insure" your risk with any guidebook. We appraise vehicles like a dealer would. Which is why our guaranteed value is the same as the appraisal value. Because it's a guaranteed offer backing it up. Why use two different values?

The question is, do you agree with our values??https://www.cars.com/sell/

If you do, or if you do not, please let us know your thoughts in the comments below....??