Carsala Releases Highlights of Used Car Pricing Study

BERKELEY, Calif., Feb. 11 /PRNewswire/ -- A new used car pricing study released today by Carsala.com, an online car buying negotiations service for value-conscious car buyers, found consumers can save, on average, over twenty-five percent off CarMax prices through  search, analysis, and skilled negotiations. With a tightening used car market and prices expected to remain higher than average, finding the best deal remains a priority for consumers looking for their next used vehicle.

The Carsala study compared non-negotiable prices at CarMax to prices, both pre-negotiated and negotiated, on similar cars at competing dealers. The study provides quantitative evidence suggesting that consumers can find significant savings through non-CarMax dealers if they are willing to research, compare and negotiate price.

"The purpose of the study was to examine used car pricing trends and how car buyers could save money on their next car purchase," explained Carsala CEO, Tyler Elliston. "The results of the study were profound in that not only could car buyers achieve a better sales price by negotiating with non-CarMax dealers but they could also save money with simple research and comparison."

Highlights from the study include:

• The average discount off Kelley Blue Book values for CarMax cars was .55% while the non-CarMax dealer discount was 1.41%.  
• Price research alone produced discounts at non-CarMax dealers greater than those offered by CarMax (~9%).
• Price research and extensive negotiations produced discounts at non-CarMax dealers far greater than those offered by CarMax (~25%).
• More expensive cars for sale at CarMax were listed at a greater discount than cheaper cars.

Methodology Summary

Carsala analysts randomly selected 20 popular cars and searched for each at Carmax.com. They then found similar cars (same year, make, model, and 250 mile radius) at other dealers and negotiated with a subset of those dealers. The CarMax prices were then compared to those offered by competing dealers, both before and after negotiations.  Kelley Blue Book was used as an equalizer, accounting for differences in attributes like mileage and transmission. Finally, AutoCheck reports were reviewed to control for vehicle quality.

The study was completed over a three-week period in January 2010. To view the complete study, CarMax Pricing Study, please contact Carsala at [email protected].

About Carsala

Founded in 2008, Carsala.com is a car buying negotiations service that helps consumers research, find and negotiate the best deal on a used car using the company's proprietary tools and network of experts. Working exclusively for car buyers, Carsala provides consumers with a positive automotive purchasing experience by saving buyers money; reducing the time a buyer spends researching their next car and eliminating the negotiations hassle.

Carsala is privately funded and is financially backed by Labrador Ventures, Launch Capital, Band of Angels and individual investors. For more information about Carsala, please visit www.carsala.com.

SOURCE Carsala, Inc.