Navigating the world of car buying can be complex, with prices often feeling like a mystery. The Edmunds Car Pricing Tool, also known as Edmunds True Market Value® (TMV®) or Edmunds Suggested Price, is designed to bring transparency and confidence to this process. Think of it as your secret weapon for understanding what a fair price truly looks like, whether you’re buying new, used, or trading in your current vehicle.
This guide will explain how to effectively use the Edmunds car pricing tool to your advantage. We’ll break down what TMV® is, how it’s calculated, and most importantly, how you can leverage this information to ensure you’re getting the best possible deal.
Understanding Edmunds True Market Value® (TMV®)
Edmunds True Market Value® is essentially Edmunds’ expert estimate of the average price cars are currently selling for in your specific area. It’s based on real-world transaction data, reflecting what other buyers are actually paying. This is different from the Manufacturer’s Suggested Retail Price (MSRP), which is just a suggestion, or the invoice price, which is what the dealer pays but doesn’t account for all factors.
For car buyers, the Edmunds car pricing tool provides a benchmark – the Edmunds Suggested Price – to aim for during negotiations. For those looking to trade in a vehicle, the Edmunds TMV® for trade-ins gives you a realistic expectation of your car’s value when selling to a dealership.
A key point to understand is that Edmunds, since June 2021, is a wholly-owned subsidiary of CarMax. CarMax, a major player in the used car market, provides transaction data to Edmunds. However, it’s crucial to note that while CarMax data is incorporated into TMV® calculations, CarMax does not influence how Edmunds calculates these values beyond data provision. This ensures the Edmunds car pricing tool remains an objective and independent resource.
How to Use the Edmunds Car Pricing Tool for New Car Shopping
The Edmunds car pricing tool is incredibly user-friendly and packed with valuable information. When you configure a new car on Edmunds, whether through the “build and price” tool or by browsing inventory, you’ll find the Edmunds Suggested Price prominently displayed alongside the invoice price and MSRP.
Getting accurate results is paramount. Always ensure you’ve precisely selected the correct year, make, model, trim, and options for the vehicle you’re interested in. Even minor discrepancies can lead to inaccurate pricing information and potential misunderstandings at the dealership.
The Edmunds Suggested Price is your negotiation starting point. It tells you what’s a fair price to pay before taxes and fees. When negotiating with a dealer, especially if their initial offer is higher than the Edmunds Suggested Price, referencing this figure can be very effective.
For instance, if a dealer quotes you $30,000 for a car, but the Edmunds car pricing tool suggests $28,000, you can confidently say: “Based on my research with Edmunds car pricing tool, the average price for this model is around $28,000. Can you match or beat that price?”
Alternatively, if you prefer a straightforward approach, offering to pay the Edmunds Suggested Price can streamline the negotiation process. Having a screenshot or printout of the Edmunds pricing on hand can further solidify your position and show the salesperson you’re informed and serious.
Keep in mind that while the Edmunds car pricing tool is data-driven and highly reliable, it’s not infallible. Market conditions can fluctuate rapidly, and sometimes data may be limited. In such cases, getting quotes from multiple dealerships (two or three) can provide a real-world TMV check, complementing the Edmunds tool.
Leveraging Edmunds Car Pricing for Car Leasing
Even if you’re planning to lease a new car, the Edmunds car pricing tool remains a valuable asset. Lease payments are directly tied to the car’s selling price, known as the “cap cost” in leasing terms. A lower car price translates to lower monthly lease payments.
Once you’ve used the Edmunds car pricing tool to determine the fair market value of the car you want to lease, you can input this price into the Edmunds auto lease calculator. Combining the Edmunds Suggested Price with their lease calculator gives you a powerful way to estimate and negotiate favorable lease terms.
Appraising Your Trade-In and Used Car Values with Edmunds
The Edmunds car pricing tool extends beyond new cars, offering a dedicated appraisal tool for used car values. This is crucial when you’re looking to sell your current vehicle or trade it in.
For trade-ins, the Edmunds tool provides a “trade-in value,” showing you what you might expect to receive from a dealer. If you’re buying a used car from a dealership, the tool also reveals the “dealer retail” price. For private sales, the “private party” price indicates what you could ask for when selling directly to another individual – consider pricing slightly higher to allow for negotiation.
Accuracy is key when using the used car appraisal tool. Be honest and precise about your car’s options and condition. Most used vehicles fall into “clean” or “average” condition categories, with “outstanding” condition being rare.
Furthermore, Edmunds provides market prices for certified pre-owned (CPO) cars. After entering your car’s details, CPO pricing information will appear at the bottom of the results page. Remember, these are still average prices, and negotiation is always possible.
Navigating Car Pricing Jargon with Edmunds as Your Guide
The car buying process is filled with pricing terminology – MSRP, sticker price, invoice price, savings, and more. Amidst this potentially confusing jargon, the Edmunds Suggested Price acts as your anchor point. It cuts through the noise and provides a clear, data-backed figure to keep in mind.
By focusing on the Edmunds car pricing tool and its output, you can confidently navigate negotiations, ensuring you’re paying a fair price whether you’re buying new, used, leasing, or trading in. The Edmunds car pricing tool empowers you with the knowledge to make informed decisions and secure the best possible deal.
Frequently Asked Questions About Edmunds Car Pricing Tool
What exactly is Edmunds True Market Value® (TMV®) or Edmunds Suggested Price?
The Edmunds car pricing tool’s core function is to estimate the average transaction price for vehicles in your area. It shows you what other buyers are paying for similar vehicles, giving you a strong foundation for your negotiations. For sellers, it provides an estimate of your vehicle’s trade-in value.
Does the Edmunds car pricing tool consider incentives and fees?
Yes and no. Edmunds TMV® does factor in incentives and fees that influence the transaction price, such as:
- Manufacturer-to-dealer incentives (dealer cash)
- Destination charges
- Applicable advertising fees
However, it does not include incentives and fees typically applied after the transaction price is set, including:
- Manufacturer-to-consumer rebates (cash rebates)
- Sales tax
- Registration and license fees
- Dealer documentation fees
Are there any vehicles the Edmunds car pricing tool doesn’t cover?
Yes. Edmunds cannot provide appraisals for:
- Vehicles older than 1990 model year
- Exotic vehicles
- RVs, motor homes, commercial trucks, tractors, trailers
- Motorcycles and ATVs
- Vehicles with salvage titles
- Demo vehicles
- Non-U.S. vehicles
- Heavily customized vehicles or those with aftermarket accessories
Does the Edmunds car pricing tool account for regional market differences?
Absolutely. Edmunds Suggested Prices are designed to reflect varying market conditions across the country. This includes regional marketing fees, which are incorporated into the overall suggested price, even if not listed separately.
Where does Edmunds get its pricing data?
Edmunds gathers data weekly from the dealer management systems of a vast network of dealerships – approximately 5,000 across the US, representing about 25% of all US dealerships.
How is dealership data shared with Edmunds?
Edmunds utilizes a secure vendor to extract only approved data from dealership systems. This data is then electronically transmitted to Edmunds.
Why is transaction data important for the Edmunds car pricing tool?
Transaction data is the lifeblood of the Edmunds car pricing tool. More data means greater accuracy in TMV® pricing. The goal is to identify the most common selling price in the market, ensuring fair deals for both buyers and sellers, minimizing stressful negotiations.
What pricing components are included in the Edmunds Suggested Price for new cars?
The Edmunds Suggested Price for new vehicles encompasses:
- National base price
- Destination charges
- Regional adjustments
- Color adjustments
- Optional equipment costs
- Applicable incentives
Used car appraisals also factor in condition and mileage adjustments.
What is the invoice price, and how does it relate to Edmunds Suggested Price?
Invoice price (or dealer cost) is the price listed on the invoice from the manufacturer to the dealer. While important, it’s not the complete picture. The true selling price usually falls between the MSRP and invoice price. The Edmunds Suggested Price bridges this gap by showing what consumers are actually paying, revealing a fair price point. Note that invoice price doesn’t reflect all dealer discounts, manufacturer-to-consumer rebates, destination charges, taxes, or fees.
Why might invoice prices differ on Edmunds compared to other sources?
Invoice prices on Edmunds are based on manufacturer “dealer order guides.” However, dealers might add fees like advertising fees. Price discrepancies can also arise from regional pricing variations or when comparing vehicles with slightly different styles or options.
How can I find invoice pricing on Edmunds website?
- Use the Edmunds search bar to find your desired Make/Model.
- On the overview page, click the “Build & price” link.
- Configure your vehicle. Invoice pricing will be displayed in the results graph.
Edmunds Invoice Pricing Example
Does Edmunds TMV® include taxes and other fees?
No. Edmunds TMV® does not include taxes or fees like sales tax, registration, or dealer documentation fees. These vary based on location and dealership practices.
Does Edmunds provide pricing for vehicles with aftermarket modifications?
No. Edmunds car pricing tool does not provide pricing for vehicles with aftermarket parts. Aftermarket parts vary greatly in cost and quality, making it impossible to reliably assess their added value. Modifications may also void warranties and often decrease trade-in value as dealers typically prefer to return vehicles to their original condition before resale.
Does True Market Value (TMV) include dealer-installed options?
TMV pricing only includes factory-installed options. Dealer-installed options and accessories are too variable to accurately price.
