USED CAR VALUES INSIGHT
24 APRIL 2 019 AUTOCAR.CO.UK 57
Auto Trader,” he says. “It compares
my c a r s w it h si m i l a r one s a nd t e l l s
me w he r e , pr ic e -w i s e , t he y sit i n t he
market. It takes into account details
such as colour and options. Using it,I’ve had a BMW sell for £1000 more
than Cap suggested it would.
“Today, when customers can
compare lots of prices at the click of
a mouse, the game’s about getting
them through the showroom door at
prices that are not only competitive
but which, for me, ref lect the unique
appeal and value of each car.”
He mu s t b e ont o s ome t h i n g: a f t e r
a lot of shopping around, my son’s
girlfriend bought a Mini from him.
Karolina Edwards-Smajda,
director of commercial products at
Auto Trader, says its Retail Check
valuation tool for consumers and
Retail Accelerator product aimed
at dealers draw on Auto Trader’s
450,000 daily used car ads to gauge
prices and supply and demand. Their
point is that the starting point is a
car’s selling price, not its trade price.
“When they’re buying cars, we tell
dealers not to focus on the trade price
but on what they believe they can sell
the car for,” she says. “Calculatingw h at m a r g i n t he y a r e h app y t o w ork
w it h a nd w ork i n g ba c k f r om t he
selling price gives them the price
they should pay.”
Philip Nothard is customer
insight and strategy director at Cox
Automotive, owners of Mannheim,
one of the biggest auction groups in
Europe. Does this former Cap HPI
editor believe valuation providers
rather than market forces determine
what a car is worth?
“The motor trade interprets
`
A BMW sold for £1000 more
than Cap suggested it would
a
When you go online to find out
w h a t yo u r c a r i s wo r th , b e h i n d th e
scenes the figure is likely to be
provided by a used car valuation
company such as Cap HPI. It
bases its valuations not only on
specification, age and mileage
but also on external factors such
as changes in model supply and
demand. To ensure the valuations
are as accurate as possible, a teamof expert editors checks the data.
A key factor in determining a
car’s value is its condition. When
you seek an online valuation, you’ll
be asked to confirm the condition
of your car. For the motor trade,
Cap HPI gives a value for each
of three condition grades it calls
Clean, Average and Below.
As cars age, they deteriorate,
so the criteria for each of Cap
HPI’s grades changes to reflect
this. For example, to be judged in
Clean condition, a one-year-old
car is permitted to have only one
area or panel requiring a minor
repair. Meanwhile, a three-year-old
example is allowed three.
Here are four online companies
ke e n to va l u e yo u r c a r. To g e t th e
most accurate valuation, be honest
about the condition of your car:whatcar.com/car-valuation
Sister website to autocar.co.uk
gives guide prices for cars
registered since 1998.
clicktobuy.hyundai.co.uk
One of the few sites that gives
you a price verging on the car’s
trade value.
hpivaluations.com
Powered by Cap HPI, this provider
can tell you the price of the car
when it was new, plus its private
sale price, forecourt price and
trade-in value today.
autotrader.co.uk/car-valuation
Shows private sale and part-
exchange guide prices for your car.
CONDITIONAL
OFFERS
v a lu at ion s b e t t e r t h a n it d id a nd
h a s lot s of d at a t o c r o s s-r e fe r t o,” he
says. “In order to get a clearer picture
of a car’s real worth, major dealer
g r oup s t h at bu y a nd s e l l lot s of c a r ssupplement guide valuations with
their own data relating to specific
sales. So no, I believe there are too
many checks and balances for that
to be the case.”
T he l a s t w ord mu s t go t o E d w a rd s-
Smajda. Asked who she believes is
mor e a c c u r at e , A ut o Tr a de r or t he
traditional valuation companies, she
says: “It’s not who is more accurate
but, because there are so many
v a r i a ble s , w ho i s le s s w r on g.”
W he n it c ome s t o c he c k i n g w h at
y ou r c a r i s w or t h , t h at ’s s ome t h i n g
you should bear in mind. L
Andrew Mee and Derren
Martin watch the used
car market like hawks
hands on them before anyone else.
As a former car manufacturer
executive, Derren Martin, head
of valuations at Cap HPI, has
experienced more than his fair share
of these orchestrated sales, which he
describes as “just a piece of theatre”.
W h at c onc e r n s h i m mor e a r e
the more discreet tactics that
car makers and others deploy to
inf luence the values of their cars.
T he s e , plu s t h i n gs s uc h a s r a ndom
price movements that can affect
markets, are why he employs a team
of specialist editors to scrutinise,
interpret and understand the data
pouring into Cap HPI’s offices.
Unusual price movements in
the order of 3% above or below Cap
Condition – a measure that ranks
valuations by three condition levels
called Clean, Average and Below –
are automatically red-f lagged by the
system. The editors must clear these
red and, for lesser movements of 2%,
amber lights each day by checking
the underlying cause and deciding
whether it represents a genuine
sh i f t i n v a lue s or i s ju s t a one - of f
blip. Crucially, the editors are based
around the country, so when they’re
not putting out lights, they’re visiting
dealers and auctions, sourcing data
and opinions on the ground.
“We have some very hard
conversations with car
manufacturers and are regularly
asked to explain our figures,” says
Ma r t i n. “I a l w ay s t e l l t he m w e ’r e
simply reflecting the market.”His colleague Andrew Mee, head
of forecasting, predicts where prices
will be tomorrow and further into
the future. Factors he considers
include oversupply, model lifespans
and changing fashions, as well
as external forces including the
country’s future political and
economic landscape. His calculations
i n for m t he f ut u r e v a lue s f i n a nc e
companies rely on when calculating
personal contract purchase deals.
“Of course, there are always
surprises,” he says. “For example,
in the past couple of years we’ve had
to add our own experience of the
changing fortunes of diesel cars.”
Not long ago, Cap HPI and its
rival Glass’s Guide dominated the
car valuation business. Things are
different today. Tony Anderson runs
Arena Cars, a used car dealership
ne a r A lde r shot , a nd he u s e s ne it he r.
“I use Retail Check, provided by