When Should You Sell Your Car? Maybe It’s May.

When Should You Sell Your Car? Maybe It’s May.

Carmigo’s May Used Car Market Watch

The May used car market seems to be just as hot as it was in the previous months of 2022. 

May Used Car Market Watch

The average sale price for both new and used cars is still rising, but for how much longer? Is it the right time to sell or will prices jump again? If you sold your car today, could you afford to replace it? 

Let’s get into it. 

Average Prices?

Car Gurus has the average used car sale price at $30,819, up 0.34% over the past 30 days,+0.25% over the past ninety, and +21.56% since last year. 

And after a brief dip, the average new car price was $46,526 in April, a nearly $200 increase over march and more than a $5,000 increase over last year (according to KBB).

But that KBB report came with some good news for buyers interested in an electric vehicle. Because manufacturers are making more and more EVs, prices have begun going down. The average EV sale price dropped more than $1,000 from March to April. 

Are prices trending up or down?

Up. They’re still going up. 

How to watch the market link

A report from KPMG predicted the used car market could collapse later this year. But their estimate that the average sale price could drop by 30% means prices are still higher than pre-pandemic levels. And that report came out late last year, so prices have already remained high longer than expected.

Other industry experts are saying manufacturing supply and used car prices don’t normalize until 2025.

May Used Car Market Contributing Factors

The factors have pretty much stayed the same since our March market report.

Used cars are still experiencing heavy demand due to a shortage in new car manufacturing. And while most manufacturing facilities are currently operating on schedule, the market hasn’t recovered from two years of manufacturing shutdowns, supply chain disruptions, chip shortages, and unexpected global trade issues—not to mention a war. 

Additionally, the tax deadline has passed and the IRS is issuing refunds every day. Auto Remarketing reported a large chunk of survey respondents planned to use their tax refund on a car. That means even more buyers in an already-crowded marketplace.

What’s this mean for you?

If you have a car that you don’t need, it’s time to sell. You have cash sitting in your driveway. 

On the other hand, replacing a car isn’t as easy as selling one in the current market. 

But here’s the good news: You may still be able to sell your car, buy a new one, and come out ahead. 

Overall prices are up, but used car prices have outpaced new car prices since the start of the pandemic by a large margin. That means you may be able to get way more for your used car and only pay slightly more for a new car. 

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What We’re Loving: BBQ

What We’re Loving: BBQ

Everybody Does it Differently, Especially These Folks

One great thing about Carmigo being in so many different markets is the diversity of barbecue we get to eat. Every city in the South has its own take on these delicious smoked meats. 

We’ve put together a list of some restaurants pushing the boundaries even further by taking unique approaches to their Q. 

Memphis | DWJ Korean BBQ

Photo of BBQ restaurant DWJ Korean BBQ.

DWJ puts a twist on the classic for a different kind of barbecue experience by incorporating Korean heritage and flavors into their dishes. It’s excellent for family-style dining, and their hot plates keep the food warm while you eat, so nothing ever gets cold.

DFW | Panther City BBQ

Photo of BBQ restaurant Panther City BBQ.

This restaurant started as a food truck but has since moved into its own storefront. Taking an especially Texas stance, Panther City combines Texas-style barbecue and Mexican cuisine for one of a kind experience. And the BBQ breakfast on Fridays is not to be missed.  

Atlanta | Fox Bros Bar-B-Q

Photo of BBQ restaurant Fox Bros BBQ.

Fox Bros Bar-B-Q isn’t necessarily a secret spot, but so worth mentioning. Along with delicious BBQ, they sell bottles of their BBQ sauce in local Kroger stores and was featured on Guy Fieri’s Diners, Drive-Ins and Dives.

Little Rock | Sims Bar-B-Que

Photo of BBQ restaurant Sims Bar-B-Q.

According to the locals, this location has the best ribs in Little Rock. The plating is humble, but the fixins are made with love and taste just like mom used to make (if your mom can cook, that is).

Birmingham | SAW’s Soul Kitchen

Photo of BBQ restaurant SAW's Soul Kitchen.

SAW’s Soul Kitchen is a hole-in-the-wall barbecue joint known for its Pork and Greens. This spot also boasts a variety of other Southern comfort food like fried okra, collard greens, and a bomb sweet tea chicken sandwich.

Huntsville | Luv Hawaiian BBQ

Photo of BBQ restaurant Luv Hawaiian BBQ.

Luv Hawaiian BBQ is another unique BBQ experience from the islands of Hawaii. Take your senses on a tropical vacation without leaving the 48 by trying out this Huntsville hidden gem. The lava chicken is a 10/10.

Nashville | Bringles Smoking Oasis

Photo of BBQ restaurant Bringles Smoking Oasis

Bringles Smoking Oasis is a cafeteria-style Nashville BBQ joint that is worth the visit. You go for the food but stay for the ambiance. Frequent customers love the Pastrami Brisket. It features indoor and outdoor dining with a patio that’s worth checking out. 

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How to Read the Used Car Market

How to Read the Used Car Market

how to read the used car market

How much does a used car even cost these days?

If you want to buy or sell a used car, it’s important to know your car’s fair market value. And to know your car’s fair market value, you’re going to need to know how to read the used car market. 

Certainly, Kelley Blue Book serves as a great reference point. But it’s helpful to be able to plan ahead by identifying market trends. And the KBB estimate can lag behind the marketplace from time to time. Often, when market conditions change, sellers are the last to know. So keep that in mind when using estimate tools. We don’t want you to have unrealistic expectations for your sale, or worse, sell your car for less than market value. 

Plus, following even one of these factors can go a long way toward buying or selling your car at the right price and time. 

Average Car Sale Prices

If you’re going to sell your car, you want to make sure you’re getting a competitive price. So take a look at what other similar cars in your area are being bought and sold for.

via GIPHY

Plenty of resources can help you determine the average sale price of new cars, used cars, car types, and car models. We’d name a few here, but the honest truth is, typing “Average car sale price,” into a search engine and then reading three or four of the summaries is the best way to get a broad picture of the market. 

A lot of folks assume this number is constant because cars have a set sticker price, but what buyers actually pay is almost always different.

But why? Let’s get into it. 

Supply and Demand

how to read the used car marketHere’s my go-to example: Imagine you are in a swimming pool on a fairly cool afternoon sipping from a big cold bottle of water. A water salesman approaches. Would you even pay $0.25 for that water? I wouldn’t.

Now imagine you’re crawling through a desert in a thick burlap shirt with nothing but a bag of Hungarian Wax Peppers and a wad of $20 bills. A water salesman approaches. How much do you pay for that water? 

When buyers have lots of cars to choose from, they can pay less. And when sellers have lots of cars they need to sell, they’re willing to sell for less. When there are fewer cars, buyers are less picky and sellers can charge more. 

In addition, a reduction in new car supply can cause an increase in used car demand (which can then reduce used car supply and increase used car prices).

But why are there more cars sometimes and fewer cars other times? 

Supply Chain

This is a factor the average consumer doesn’t typically need to pay attention to. But after the last few years, we shouldn’t take anything for granted.

Any number of things can cause new car manufacturing to slow down. 

Here are a few purely hypothetical examples of factors that can derail the supply chain: 

  • A global pandemic that causes factory shutdowns 
  • A war that diverts auto parts 
  • A fuel shortage
  • A microchip shortage
  • A shipping pile-up that slows down global trade. 

But those are just hypothetical.

Any of the above problems can take a long time to correct, so they cause large ripples in the new and used car markets. Like we said above, the fewer new cars available, the greater the demand for used cars. 

When to Buy or Sell?

Simply put: You want to buy where there are lots of available cars and sell when there are few. 

The best time to sell is when your car is in most demand. And the best time to buy is when the car you want has plenty of supply. 

While those may be the market sweet spots to buy and sell, they may not be the sweet spot in your current life circumstances. Now that you know how to read the used car market, you can keep an eye on trends to find a time and price that work for you. 

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How to Determine Equity in Your Car

How to Determine Equity in Your Car

How to Determine Equity in Your Car

How Much Money Can You Make if You Sell Your Car?

Do you ever wonder how much money you would make if you sold your car today? To know that, you’ll have to determine how much equity you have in your car. Your car’s value, and how much money you’d make if you sold it are two different things. Let’s start with a definition.

Equity: It’s the value of your ownership stake in an asset. More simply, how much you can get paid for something you own. 

So let’s find out how to determine equity in your car.

What’s It Worth?

First things first, we need to find out how much your car is worth. This is easy enough to do on a number of websites, like Kelley Blue Book.

What Do You Owe on Your Car Note?

Your loan payoff amount could be higher than your loan balance depending on interest and early payoff penalties. Call the bank that holds your auto loan and they’ll be able to tell you exactly how much you’ll owe if you pay in full.

Since your lender is likely holding the title to your car until the loan is paid in full, you’ll need to pay this off immediately when selling your car. 

Other Considerations?

Are there any other liens against your car? For instance, did you use your car to secure a personal loan from your bank or a cash-for-title loan? In the same way you checked your car note’s payoff amount, see how much it will cost you to pay off these loans. These will also have to be paid when you can sell.

How to Determine Equity in Your Car

Now for the math, but don’t worry. This is one of the easiest math problems you’ll ever have to do. Add up everything you owe, and subtract it from your estimated sale price like so:

Value – (Car Note + Lien) = Equity

If your car is worth more than you owe, congrats. You’ve got equity in your car, which means you’ll have money left over after the sale. 

With a little bit of saving you may be able to sell your car and pay all your loans in full just in time to shop for a new one. Or you may want to wait until you’ve made a few more monthly payments. 

Shameless Plug: Either way, when you’re ready to sell, we’ll make it easy. 

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A Shoe Store That Compliments Technology with Customer Service

A Shoe Store That Compliments Technology with Customer Service

What We’re Loving: Fleet Feet

This week we’re giving a bigFleet Feet make-it-easy salute to Fleet Feet for running the extra mile (😉 ) to make life easier for its customers. 

Buying Running Shoes Sucks

For runners, finding the right shoe is tough. No two feet are the same. Seriously, my feet are completely different widths and lengths (something I found out at Fleet Feet). And no two runners have the same stride or style. 

Read any article about getting into running and you’ll hear the same thing: Finding the right shoes is critical. Well, that’s easier said than done.

Most runners don’t have the cash to buy more than one or two pairs of decent running shoes at a time, so testing them is difficult. And to make it harder, shoe companies are always changing their designs. And to their credit, shoe technology has come a long way. 

Make It Easy

So when a couple of us walked into Fleet Feet recently to see what all the fuss was about, we were delighted to see how easy they made finding a new pair of shoes.

We love easy. 

The stores are equipped with a neat little imaging tool that sort of looks like it could house a hologram on a spaceship. Customers stand on it, and it scans their feet, creating a 3D model. The model is rendered in an iPad app and analyzed. They even send it to your phone.

It is so rad that I don’t mind sharing mine here: 

Fleet Feet imaging tool

Anyway, they asked a few questions about our running routines and styles. They looked at our scans, and they pulled out a couple of shoes and insoles, each one a little more perfect than the last.

And the results are truly spectacular. We have two big runners on staff, both of which paid a visit to our local Fleet Feet recently. The difference has been night and day. Less pain, better recovery, longer runs.

We love it when a company compliments technology with a little hands-on customer service to make life easier. That’s our thing too.

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Auction, Sell, or Trade, What’s Best for You?

Auction, Sell, or Trade, What’s Best for You?

Auction, sell, or trade, what works best for you?

When it’s time to sell your car, should you auction, sell, or trade?

Every seller is different, and every seller has different needs, so let us help you decide if you should auction, sell, or trade your car.

Auction

Pros

Real-Time Results
The most exciting part of an auction is watching the bids come in, each new bid higher than the last. The real-time nature of an auction also means you’ll get definitive results in a predetermined amount of time. No more guesswork about when you’ve found the right buyer, and you will see how much demand there is for your car right away.

Less Paperwork
Because an auction employs a third party to handle the sale (the auctioneer or auction platform), they’re also going to do some paperwork. And if you use Carmigo, we’ll handle all the paperwork — title, loan payoff, transportation logistics, and any other hassle. 

Better/Fairer Price
Because auctions have multiple bidders making offers in real-time, the marketplace will typically provide a higher price and, at the very least, a fair price. We’ve written about the ins and outs of auctions on the blog, but basically, it’s because of a combination of a larger marketplace, a diverse set of needs, and the built-in competition. 

Cons

Less Hands-On
Because a third party is handling the auction, they’ll be setting a lot of the terms of the sale. That doesn’t mean you don’t have any control (you’ll likely set the price and decide when or for how much your car sells). 

Includes Fee
Auctions charge a fee for their service, but if you find the right one (ahem, Carmigo), you’ll only have to pay a flat fee of $350 after the sale. 

Sell

Pros

You’re in Charge
This could be a con, depending on your comfort level with private sales. But when you sell your car on your own, you set the terms and control the sale. You’re in control.

Opportunity to match auction prices
Depending on your skills as a marketer and negotiator, you could attract just as many offers and sell for a price comparable to what you would get at an auction.

Cons

Strangers
Have you ever sold something on craigslist or Facebook Marketplace? There is typically a flood of demanding messages: “Will you take less?” “Is this available? Pls respond now?” “What’s your bottom price?” “Will you trade for a generator and a weight bench?” 

Plus, they’ll want to come to your house and maybe even take it for a test drive. It’s uncomfortable, not fun, and many sellers feel unsafe in these situations. It makes sense when tens of thousands of dollars are at stake in many cases. 

Bartering
The back and forth of bartering over something you’re selling online or otherwise is exhausting (or thrilling for some). 

Time Consuming
Between making signs, posting ads, fielding messages, scheduling visits, bartering, and all the paperwork, selling your car privately takes a lot of time. And that’s even if it sells fast. 

Dealership Trade-In

Pros

Immediate
We’re not going to lie, taking your car to the dealership and being able to part with your used car immediately can be a blessing. And that’s especially true if it’s a car you’ve wanted to rid yourself of for a while.

Credit Toward New Car
Getting a trade-in means you’ve got automatic money down on your new vehicle without additional transactions. 

Convenient
Being able to drop your old car off and drive away in a new one is undeniably convenient. In some cases, it may even be worth the reduced value you’ll get in return for your car. 

Cons

Less Money
Typically, dealerships can offer less money on a trade-in because they know how convenient it is. After all, you’re already on the lot. And it’s not like you can drive two cars home. 

One Buyer, One Price
If you’re only getting one offer, chances are it’s not the best offer the marketplace has to offer. Honestly, it’s probably not even the average. Having one offers means your price is based on the needs of one dealership, not the larger marketplace. 

Bartering
Spending time at a dealership means spending time in the back and forth. How often does the dealer have to “ask the big guy” if he can offer more before you second-guess your decision? 

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Top 5 Reasons to Auction Your Car

Top 5 Reasons to Auction Your Car

Auction your car to get more offers, more money, and sell faster.

Auction your car for more offers, fewer strangers, and real-time results

There are plenty of ways to sell your car — on Craigslist, to a single online retailer, to a local dealership, or to some guy named Donny. But we think we have a better way. Here are the top 5 reasons to auction your car:

5. Bidding Builds Buyer Competition 

Competition is human nature. We love it. And the competitive nature of auctions has proven over time to favor the seller. Seriously. Read about how one Hollywood auction changed the bidding landscape forever.

4. You See Real-Time Results

No more, “Let me talk to my manager and see if we can come up any on that trade-in offer.” You see the offers as they come in. It’s transparent — crystal clear.

3. No Strangers When Your Auction Your Car Online

You don’t have to let internet people come to your house to look at your car. No one snooping around your garage asking, “Is this dog for sale, too?” And no more 2 a.m. text messages from “Mitzi on Craigslist” asking if you’ll trade your car for a 100cc mini dirt bike. 

2. Auction Your Car to Avoid Haggling

Seriously, no haggling on a car lot in the mid-afternoon sun. The dealerships that want the car the most can fight over the price. All you have to do is… nothing. Or you can watch — that’s fun too. 

1. More Bidders = More Money

Because auctions pit buyer against buyer instead of buyer against bidder, each new offer has to be higher than the last. So the more bids you get, the more money you get. 

Bonus: Watching the bids roll in is SUPER fun. Once that first bid hits, and then more and more come in like a wave before high tide 🤙 … it’s a rush. 

Are you convinced? Good. You can start watching bids roll in, too.

On the Carmigo Marketplace, you can build your listing in minutes and sell in as little as a day — all from your phone. 

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How to Start a Bidding War over Your Car in 5 Steps

How to Start a Bidding War over Your Car in 5 Steps

More bids mean more money for your car. Here’s how to start a bidding war.

Line illustration of a gavel used in an auction. This is how to start a bidding war using auctions. Bidding is one of the few cases where quantity is quality. So let’s talk about how to start a bidding war over your car. Then we’ll get to work on fetching you more bids on your car and maybe even start a bidding war. 

Auctions use a few economic and psychological principles to help connect the seller with the buyer of greatest need. Greater need translates to higher prices. Those principles include social proof, scarcity, and competition, which you can read more about on the Carmigo Green Light

Because of these principles, the more bids a listing receives, the more likely it is to receive more bids. For humans, it’s easier for us to do something we’ve seen others similar to us doing. 

It’s like how the more popular a trend becomes, the more people adopt it. Think of it as compounding interest…in your car.

Setting a competitive price is how to start a bidding war for your car.1. Set a Competitive Price

A reasonable starting price (even one that may be a little under what you want) will encourage the first bidder to bid. 

Some auctions, like Carmigo, operate on a reserve price. This means you set the lowest price you’re willing to sell for. Setting a competitive reserve price will give more bidders confidence they can meet it.

As more bids come in, other bidders become more confident in the quality and value of the car. Like we said earlier, more bids mean more money. 

This is no guarantee, but making your price competitive will usually get the ball rolling.

Getting a certification badge from your auction platform is how to start a bidding war for your car.2. Qualify for Auction Certification Badges

Many auctions certify cars that meet certain requirements, and those certifications attract more attention.

For instance, we put a Carmigo Certified Badge on listings that meet our qualifications. And then buyers are more likely to bid on a listing we’ve certified. 

Make sure your auction platform provides similar badges and certifications.

How to start a bidding war? List a clean car.3. Look Your Best

Think of your car listing as a job interview. You get dressed up to make a good first impression, and if you dress your car up a little, it will make a better first impression too.

Pictures of a clean car make it easier for bidders to assess. And a clean car leaves bidders with an impression of a car that’s been cared for.

Keeping good service records is how to start a bidding war for your car.4. Keep Good Service Records

Like with photos, proof that the car has been consistently and well maintained builds confidence in your listing.

Dig those body-shop receipts out of your glove compartment and contact your local mechanic or dealership to see if they have maintenance details. 

Taking good photos of premium upgrades is how to start a bidding war for your car.5. Take Photos of the Good Stuff

If you’ve got premium add-ons, like a sunroof, on-board navigation, premium entertainment system, or third-row seating, take pictures and point out the details. 

These are the kinds of things that can increase the value of a used car, so be sure to document them. 

Find an Auction

Finally, you can’t start a bidding war if you don’t sell through an auction. So find a good auction platform that will work with you to get the best price for your car. We personally think Carmigo is the best way to sell your car. But we’re biased. 

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Auctions Can Get You More Money for Your Car, Here’s Why

Auctions Can Get You More Money for Your Car, Here’s Why

Auctions can Sell Your Car Faster and Put More Money in Your Pocket

Line illustration of a gavel used in auctions.You’re not getting a fair-market value if you’re selling a car through trade-in, or a set-price listing online. Well, probably not. Auctions create higher demand and value for your car. 

That’s because the marketplace is stacked against you. But if you can level the playing field, the result is more money in your pocket.

But we have a solution: a one-day, dealership-only auction. 

Seriously. We’ve got the research to back it up. Plus we’ve already made thousands of people more money than they would’ve gotten from Carmax or Carvana. 

Stanford Economist Robert Wilson sums it up nicely:

“People tend to have the impression that auctions are all about competition, but a lot of what we also study is how to design the rules to get an efficient, cooperative outcome.”

Economics and communications researchers have found that auctions trigger a number of natural human responses that can generate fair-market values for the seller. And sometimes those conditions can benefit the seller by driving the price up.  

And we want you to get a fair price for your car without having to drive from one dealership to the other. Or worse, without having to talk to strangers on the Internet. 

Bidding Creates Social proof: 

A car is only worth what someone will pay for it. But in an auction setting, each bid redefines what the car is worth. The more dealerships bidding, the greater the social proof that your car is actually worth more. 

Psychologist Robert Cialdini popularized the concept of social proof. At its core, humans gauge our own personal risk based on the actions of those around us and close to us. 

Imagine you’re unsure about a new tool at work. What if your friends at a similar company were all excited about it? Would you be more confident in switching to that tool? What if people you respect from your company also switched? 

Now imagine you work for a car dealership and are on the fence about buying a car. What if every other dealership in your region put in a bid that was a few hundred dollars more than you thought the car was worth? Would you reevaluate the car? 

The Principle of Scarcity: 

Scarcity is similarly defined in both economics and psychology. Basically, the more access we have to something, the less we value it. Inversely, the less access we have to something, the less we value it.

All used cars are different, so your car is unique. When it sells, every other buyer misses out on that particular car. Human beings instinctively value scarcity. 

We wear diamonds and gold because they’re rare. We pay more for limited-edition sneakers. Buyers will pay more for your car, the more unique it is, and in a used car marketplace every car is unique. 

Auctions Leverage Multiple Buyers: 

Auctions leverage the scarcity principle by including multiple potential buyers in the process. 

If you have a case of cold bottled water in your fridge, would you pay $1 for a bottle of water from a door-to-door water salesman? What if you saw the same salesman in the middle of the desert and he was charging $10? 

In a traditional sale, one buyer pays one price. That price can be negotiated, but will ultimately be based on the needs of one buyer and one seller. 

A trade-in offer is based on the needs of one dealership. Making the car available to multiple car dealerships with differing inventory needs creates a fairer market price. 

Auctions Create Competition: 

This is the simplest of all the concepts. 

Humans thrive on competition. It’s wired into our brains. There are multiple television channels dedicated solely to auctions because we love competition.

ESPN has more channels than any one person can watch and each one is based on less and less serious competition — from multi-million dollar boxing matches to cup stacking and bean bag tossing. 

The dealerships bidding on your car are essentially competing for your car. And each bidder is from a different car dealership, so they’re competing in that arena as well.

Auctions Are Time Restricted: 

Restricting time means that the bidders have less time to process, meaning they rely on faster reaction instincts instead of processing more deeply. In humans, the rational brain is the slower processing part of the brain.

This also plays back into the scarcity principle. There is no second place in an auction, so you have to have the highest bid when time runs out. 

Carmigo’s one-day auctions ensure that you can sell your car fast, but it also acts to give bidders a hard deadline to make a decision. 

Then Why Do Dealerships Participate?

Cars are expensive, and new car production has lagged behind demand for years now. That means more people need more used cars.

Dealerships have to keep high-quality used cars in stock to attract new customers to their lots and keep old customers happy. 

The reason you got a low-ball offer on your car last time you took it to a dealership was probably because that dealership didn’t need that car.

Dealerships in Denver need more 4-wheel drive crossovers than dealerships in Florida. Dealerships in rural Texas need more crew-cab trucks than dealerships in urban California.

Having a large footprint allows us to match the specific supply with the specific need. 

Dealerships flock to the Carmigo auction marketplace because they know we’ll have a diverse selection of cars, ready for them to sell. 

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Start a Bidding War and Sell Your Car for More

Start a Bidding War and Sell Your Car for More

What the Poseidon Bidding War Tells Us About Selling Cars

This is the story of how a Hollywood producer used auctions to start a bidding war, and what that has to do with selling your car? 

The producers of The Poseidon Adventure (1972) decided to auction the TV rights to the movie. Instead of setting a flat price, or negotiating with one network, they made every network duke it out for the first TV showing of the movie. 

It’s a bit of a wild ride, but we promise we’ll tell you what this has to do with cars and your money. Buckle up. 

How a Sinking Ship Movie Sunk ABC

So in the 1970s ABC paid $3.3 million for 1 airing of The Poseidon Adventure and lost $1 million in the process. 

It’s because the movie’s producer, Irwin Allen, started a bidding war for the movie, and they made so much money doing it. 

Which is what Carmigo does for cars, but more on that later.

Back to the 70s. 

ABC came out hot, with $2 million. It was a competition after all. Then CBS said $2.4 million. 

ABC: $2.8 million. 

CBS: $3.2.

CBS’s then-President Robert Wood has said he knew this was too much, even when he made the bid.

Lucky for him, ABC’s Barry Diller made one more bid — $3.3 million. They bid $3.3 million, knowing that the airing was projected to make closer to $2 million.

Diller immediately vowed, “never again,” when it comes to auctions.

How You Can Start a Bidding War for Your Car

Want to start your own little bidding war for your car? We can help.

Here are the basic reasons why you get more money when you auction your car instead of selling traditionally. 

Social proof: A car is only worth what someone will pay for it. But in an auction setting, each bid redefines what the car is worth. The more dealerships bidding, the greater the social proof that your car is actually worth more. 

Scarcity: Human beings instinctively value scarcity. The less of something there is, the more we value it. In a Carmigo auction, only one of our many potential bidders can drive away in your car. 

Multiple Buyers: A trade-in offer is based on the needs of one dealership. Making the car available to multiple car dealerships with differing inventory needs creates a fairer market price. 

Competition: The dealerships bidding on your car are essentially competing for your car. And each bidder is from a different car dealership, so they’re competing in that arena as well.

Time Restriction: Restricting time means that the bidders have less time to process, meaning they rely on faster reaction instincts instead of processing more deeply. In humans, the rational brain is the slower processing part of the brain. Carmigo’s shortened timeline is not only more convenient for sellers, but could serve to increase the money made on their car. 

The Carmigo Bidding War

Economics and communications researchers have found that auctions trigger a number of natural human responses that can generate fair-market values for the seller. And sometimes those conditions can benefit the seller by driving the price up.  

This doesn’t mean bidders are making bad decisions, it simply means they’re using a different set of problem-solving skills, specifically the ones above. The dealerships bidding on the Carmigo marketplace have been doing this for a long time, so they understand these mental processes too. 

But our goal is to make sure the playing field is level. That’s why we built an auction platform where you can get your car in front of lots of dealerships all at once, without ever having to leave home. 

We want dealerships to have access to quality cars for their customers. 

And we want you to get a fair price for your car without having to drive from one dealership to the other. Or worse, without having to talk to strangers on the Internet. 

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