How is mileage accounted for in TMV calculations? (True Market Value (TMV) Car Comparisons Car Values Trade-In Values)

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Question Details Asked:Sep 17, 2010 - 11:36 AMStatus:Closed

phredg	How is mileage accounted for in TMV calculations? I was surprised to see no way to enter odometer mileage into a TMV analysis. All other things being equal - which is what TMV is all about - wouldn't mileage be a most significant factor in establishing true market value? This should be especially true in calculating the value of newer cars. Surely a one or two year old vehicle with exceptionally low miles should have significantly more value than the same car with exceptionally high miles. But the TMV just returns one value based on year, model and options. Appreciating that TMV is a calculated mean value based on real sales the presumption should be the value is based on an average car in average condition with average miles. Which I believe is usually ~15,000 per year. Beyond that, how might one tweak the TMV value to account for miles? Is there any kind of common standard for valuing mileage? For example, 5 cents per 100 miles would decrease the TMV of a car $500 for every 10,000 miles. I'm sure any such value would change with increasing miles. The first 10,000 miles should surely depreciate the vehicle more than the next 10,000 miles, etc. Has anybody ever seen any such factors?
	In Buying & Selling > True Market Value (TMV) In Buying & Selling > Car Comparisons In Buying & Selling > Car Values > Trade-In Values 5 answers - 972 days ago
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Answers

mr_shiftright 09/17/10 4:37 pm PST

Sure you can enter mileage. It's under "STEP 1" "Select Vehicle Details".

Maybe you didn't scroll down far enough?

I plan to:	Buy Sell
Color:
Miles:

phredg 09/17/10 5:50 pm PST

Thanks Mr ShiftRight. But I think if you look more closely you will see you are calculating the value under Appraisal Buy or Sell. This selectable option does not appear in the TMV forms. I've looked and looked. And looked again after you posted this answer. Please correct (again) if I am wrong. TIA

I don't claim to be an expert in any of this. And I'm sure you have much more expertise. But apparently there are subtle - but important - differences between a vehicle Appraisal for buying and selling purposes and a TMV. I'm sure they both draw off the same data but I'm guessing the underlying algorithms are different. As I understand it the TMV is a direct reflection of similar vehicles actually sold recently within a region. And it can be used in calculating True Market Value for insurance purposes. How the Appraisal analysis differs is beyond me. But apparently it differs enough that Edmunds.com separates them as two distinct and different analysis engines. And their forms are different. And the TVM does not have the mileage form.

For my purposes I'm trying to calculate TMV for a vehicle to compare to the TMV my insurance company claims is THE true market value. Curiously, their assessment is significantly lower than the Edmunds TMV. So I've got to stay close to the TVM criteria.

Any advice, feedback or correction is appreciated.

mr_shiftright 09/18/10 1:28 pm PST

Perhaps you aren't following through enough.

If you click on TMV on the Home page, and then plug in year make model, you get this:

6 Styles match your selection

2007 Toyota Yaris		Drivetrain	Engine	Trans.	Fuel Econ.	TMV
2007 Toyota Yaris Coupe (3 Dr Hatchback)
	Base	FWD	1.5L I4	Manual	32 mpg	$8,019
	Base

But then you have to click on the highlighted model, (on the left, where is says "base" or whatever it might say in your case), for further options. When you do that, you'll see the TMV as well as a tab for "customized appraisal"

So I think you just aren't completing the operation.

phredg 09/18/10 9:42 pm PST

Thanks for staying with me on this one mr shiftright. And I am totally embarressed to say I'm not getting the same results you. I've followed the TMV path many many times looking for what you are saying I should see and I'm still not seeing it. (Should say however that your last submission is not completely rendered in a readable way. The last set of instructions are getting garbled in my browser window. I've tried multiple ways to refresh and re-render the content. I've also opened the page in a different browser and I'm getting the same results in Firefox and IE 8. So I'm not able to read your full response.)

Here is what I am doing:
1. Edmunds home, select TMV
2. In the TMV input form I enter: 2010, Toyota, Camry
3. As you say, the TMV form displays a list of 10 styles to select from. I select Camry LE FWD 4-door Sedan 4.5li4 Auto with an MSRP of $21,900
5. Whereupon another window allows me to continue to selectively specify 10 options plus color and Zip code. But none of the options relate to mileage. The selectable optons include things such as CD Changer, sunroof, USB radio, Alluminum Alloy wheels, mirror/compass, destination charges, down to CA Emissions, color and zip code. But no place to specify mileage.
6. At each step along this path I scroll down the window looking for a place to enter mileage but never find it. I do run off into the weeds with options for other things such as dealer quotes. And links to Incentives,s Insurance, Free Credit Score and Financing, But these would seem to be taking me off the TMV path.

I apoligize for my densesness. Really, I'm not usually this dense. But I'm stumped. I do see the mileage entry field in the Appraisal path but not in the TMV path. I've noted in another TMV/Mileage related thread that another Expert Commenter named Steve makes the same assertions re: mileage as a TMV valuation factor as you are making. So both of you are claiming mileage is a variable that can be entered into the TMV analysis. But I'm not able to do this based on your descriptions. Really, in most circles I'm considered very computer-capable. So this is bothering me on multiple levels. I appreciate your continued engagement, help and guidance. Thanks so much.

mr_shiftright 09/19/10 12:00 pm PST

OHHHHH....I figured out what's happening. Your selection is being treated as a NEW car, because of how you entered TMV. Naturally, to Edmunds' software, new cars don't have mileage on them.

What you need to do is click on the USED CAR tab when you first come to Edmunds.com. Disregard the TMV tab.

TMV relates to both new and used cars.

So try it that way and I think it'll all be good for you.

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