The First Truth you will hear is that Edmunds is wholly owned by CarMax…
In April 2021, CarMax, the largest used-car retailer in the United States, acquired Edmunds, an automotive research and review website. While Edmunds continues to operate independently, offering car reviews, pricing tools, and other resources, they funnel all consumer leads to CarMax (KMX) a publicly traded company on the NYSE.
Edmunds has always been a regional guidebook, with a following predominantly on the West Coast of the USA. Edmunds has grown considerably, with a formidable digital presence nationally but still stronger in the West than other vehicle valuation sites. People on the East Coast don’t recognize Edmunds for vehicle valuations in favor of NADA (now JD Power) or Kelley Blue Book (KBB).
The Second Truth is that CarMax purchased Edmunds for the 18+ million site visits they enjoy as a vehicle valuation & information site. Generally, people researching a vehicle value will buy, sell or trade a vehicle within 6 months. They are true “intenders” in every possible regard. But the “research” phase of the buying cycle is an expensive target market. Most businesses want purchase intenders with a “right now” mindset. The person researching a vehicle value could be in several different places. To consider a few:
- Wanting to get out from under a payment – financial distress / can’t afford a car
- Wants to trade up – no hurry / wants to find their ideal vehicle
- Lifestyle change – baby on the way / needs more room / geography change
- Wrecked vehicle – in a rental / considering options
- Got a company car – windfall, counting their equity
- Downsizing - needs better fuel economy / commuter car
- Empath – wants an EV for altruistic reasons
All factors considered, CarMax wants the leads and they are tired of paying Google and advertising on TV. People looking for a price for their car are “ready to buy” near term and part of the purchase funnel. Running TV Ads casts a huge net, but most of the people that see the ad are not in the market for a vehicle – or ready to sell their car, today!
The 3 rd Truth (and perhaps the most difficult for people to embrace) is that your car is worth only what somebody will pay you. Cash is king, right? It’s not worth what some website or guidebook says it’s worth, which is always subject to change or verification of condition.
There are “Three C’s” that dominate what people will pay for your vehicle:
Condition – the single most important factor. If the car is pristine, garage-kept and impeccably maintained, it will fetch a premium. Sometimes far more than Edmunds say’s it’s worth.
CarFax – any accidents, damage, title brands, lemon history or absence of maintenance will be detrimental to the resale value of your vehicle.
Configuration – how the car is built, the engine, drivetrain, and options will have a profound effect on resale value. A rear wheel drive, V8 sports car in Michigan does not sell well in October – ever! And a Mercedes Benz without a sunroof is a vehicle no man wants to bring home to his wife. If it’s an undesirable color or lacks equipment, it will not be in demand and no demand means tougher to sell which equals “discount required”!
In closing, Edmunds is a “guidebook” that is automotive centric. They have no skin in the game and the values published are free! Free is good most of the time, but how much is your time worth? If you run off chasing a number that is unrealistic, you waste a lot of personal time. Time better spent with family and friends. Isn’t it better to get an OFFER FOR YOUR CAR in 20 seconds and work up from there? It’s fast, it’s free and we come to you!
Find out if your Edmunds Value is legit call (678) 635-2050.
