Get the FAQ's

Answers and information to some of the most commonly asked questions.

Did You Know?

The Canadian Blue Book unlike the Kelly Blue Book, which is one of the most popular used car value pricing guides in the United States, the Canadian Blue Book does not contain auto values at all but is an all seasons publication that publishes values for powersport vehicles such as motorcycles, snowmobiles, ATVs, boats etc..

So What Does It All Mean?

Trade In values, wholesale values, Retail pricing, Dealer invoice pricing, black book, red book, blue book, gold book, mileage factoring? With so many terms floating around it's hard for the everyday Canadian consumer to know what is what? As we mentioned above, the Canadian version of the Blue Book is an all seasons publication for powersport vehicles such as boats, motorcycles, ATVs, snowmobiles etc.. With that fact known, lets review explanations of the Canadian pricing publications and other common automotive terms.

Canadian Black Book

Publishes values based on information gathered by Canadian Black Book ® reporters from the major dealer only auto auctions from across Canada each week. The condition of the used vehicle and total kilometers will determine its value. They take into consideration such items as interior and exterior appearance, mechanical condition and tires when determining prices. Published bi-monthly.

Canadian Red Book

Their car value pricing is projected from thorough ongoing studies of the used car market in the greater Toronto area where a large volume of sales data is available. Published monthly.

The Stanford Evan's Gold Book

Their value guide provides estimated current average wholesale and retail values for Eastern Canada, Western Canada, and British Columbia in addition to original MSRP. This guide is published on a yearly basis.

Retail Price

The average value of a used car if sold by a dealership. Retail car prices are based on the accepted price of the sellers. In most cases refers to an average vehicle reconditioned to meet both the safety and visual standards to satisfy a retail sale.

Wholesale Value

The average price that a dealership will pay to purchase a used vehicle. Based on information gathered at the major dealer only auctions across Canada each week. Car dealer's cost at dealer only auctions or from one another.

Trade In Value

The amount that the dealership will credit you for the vehicle you provide as partial or full payment for another vehicle.

Certain auto manufactures provide a Canadian Black Book trade-in estimating tool. You can find a list of these manufactures on the Canadian Black Book site. Know however, the results display a value range that is reflective of a vehicle that has been unseen.

The amount that the dealership will credit you for the vehicle you provide as partial or full payment for another vehicle.

Certain auto manufactures provide a Canadian Black Book trade-in estimating tool. You can find a list of these manufactures on the Canadian Black Book site. Know however, the results display a value range that is reflective of a vehicle that has been unseen.

The condition and mileage of your vehicle plus local market conditions at the time you trade, will determine the final value. It is nearly always worth giving your new car supplying dealer an opportunity to purchase your trade-in. He is interested in supplying you with your new car so he will be motivated to give you a good price. The trade-in value will usually be approximately equal to the wholesale black book value, (The amount credited is typically five percent below the wholesale value of the vehicle). The condition and mileage of your vehicle plus local market conditions at the time you trade, will determine the final value. It is nearly always worth giving your new car supplying dealer an opportunity to purchase your trade-in. He is interested in supplying you with your new car so he will be motivated to give you a good price. The trade-in value will usually be approximately equal to the wholesale black book value, (The amount credited is typically five percent below the wholesale value of the vehicle).

Dealer Invoice

The manufacturer's initial charge to the dealer, always including freight (destination or delivery) charges. The invoice price may not reflect the dealer's final cost due to rebates, allowances, discounts, and incentive awards the dealer may receive.

Mileage Factoring

The industry standard is 24,000 kilometers per model year, thus kilometers above or below the industry standard may well influence the overall classification of the vehicle. Mileage adjustments should never exceed 50% of the published value

Used Car Marketplace Information

Fact: 60 per cent of the cars Canadians bought last year were used vehicles.

Fact: The average mark-up on a used car is $1,500 to $3,000.

Fact: Typically, offering $2,000 below the display price is a good spot to begin negotiations.

Fact: Offering to pay cash for a vehicle limits your ability to negotiate with the dealer. Instead, if you tell the dealer you'd like to arrange a way to finance your purchase, they may be willing to knock of the price a little bit, because they make some money on the financing side.

Fact: To get a top dollar value for your trade-in, you should spend some time cleaning and polishing your car to look its best!

Fact: Your offer to the dealer should always be conditional on getting an independent mechanical inspection.

Fact: A new car experiences significant depreciation in it first year because, you have paid retail price and yet can only recover the wholesale value of your car once you have left the lot.

Fact: A car loses between 15 and 20% of its value each year.
» A 2 year old car is worth 80 to 85% of what its value was after its first year.
» A 3 year old car is worth 80 to 85% of what its value was after its second year.

Common Automotive Terms

Add-ons

Products or services sold by dealerships that can be added on to the automobile and the cost of which can be financed along with the price of the car by including the amounts/costs/fees in the amount to be repaid. Some examples include rust-proofing, upholstery treatments, alarm systems, and extended warranties. Remember that these add-ons will increase the price, and your monthly payment.

Base Price

The cost of a car without options.

Body Type

The distinguishing characteristics of a car, such as the number of doors, windows, way it carries cargo (hatchback, sedan, fastback, sport, etc.)

Buyer's Market

An economic market where conditions are in favor of the buyer.

Dealer Holdback

Allowance auto manufacturers give dealers that are worth about two to three percent of an automobile's Manufacturer's Suggested Retail Price (MSRP). This holdback allows a dealer to pay the automaker an amount less than the invoice and allows the dealer to record a profit by suggesting he paid invoice price for the auto when, in reality, he/she paid less.

Dealer Incentive

A special payment from the manufacturer to the dealer to help the dealer sell slow-selling models.

Depreciation

The decline in the value of an asset due to normal wear and tear. In an automobile, depreciation is based primarily on the number of miles driven—the more miles driven, the greater the depreciation—but may also be influenced by vehicle model, maintenance, general consumer demand for the model and the maker's reputation for quality.

Destination Charge

The fee charged by the manufacturer to ship the automobile to the dealership. This fee is passed on to the buyer, and is included on the sticker.

Fair Market Value

The amount that a consumer is willing to pay for a vehicle.

Franchised Dealer

A company that is authorized by an automobile manufacturer to sell that manufacturer's products. Independent used car lots, automobile brokers, and leasing companies are not franchise dealerships. A franchise dealership normally has an affiliation with the manufacturer included in its name.

Guaranteed Automobile Protection (GAP)

Coverage that pays any remaining balance owed on a loan after payment of a total-loss insurance claim.

Independent Dealer

Independent used car lots, automobile brokers, and leasing companies who are not franchise dealerships. An independent dealership typically does not have an affiliation with an automobile manufacturer.

Invoice Price

The manufacturer's initial charge to the dealer, always including freight (destination or delivery) charges. The invoice price may not reflect the dealer's final cost due to rebates, allowances, discounts, and incentive awards the dealer may receive.

Manufacturer's Suggested Retail Price (MSRP)

The vehicle sale price which appears on a label affixed to the car window showing the base price, manufacturer's installed options, the manufacturer's suggested retail price, plus manufacturer's freight or transportation charge, and fuel economy (mileage). The label is required by federal law and may not be removed by anyone other than the purchaser. The MSRP is the recommended selling price for a vehicle plus any optional accessories.

Manufacturer's Rebate

A program offered directly to buyers by auto manufacturers to increase sales or reduce excess inventories.

Mark-up

The difference between the invoice price and the price for which the dealer sells the car.

Optional Equipment

Equipment not included in a vehicle's base price. Depending on the vehicle, optional equipment may include such items as air conditioning, automatic transmission, passenger-side air bags, or high-quality sound systems.

Pink Slip

An automobile's title certificate.

Rebate

A special payment from the manufacturer to the customer to reduce excess inventories. Also called a "Customer Incentive."

Retail Book Value

The approximate value of a used car if sold privately or by a dealership. Retail car prices are based on the accepted price of the sellers. A publication of Canadian Black Book, is one of several standard references used to determine the value of used vehicles. The value is sometimes called the "Blue Book Value." Blue books typically show a wholesale value and a retail value for each vehicle.

Residual Value

The remaining dollar value of a leased auto at the end of the lease term. Also known as book value.

Sticker Price

The manufacturer's suggested retail price for a vehicle. Also called "List Price" or "MSRP."

Vehicle Identification Number (VIN)

A seventeen-character code that uniquely identifies each vehicle manufactured in the world. A vehicle's VIN can usually be found mounted on the dashboard of the driver's side, visible through the windshield, or stamped on the vehicle's firewall.

Wholesale Blue Book Value

The approximate price that a dealership will pay to purchase a used vehicle. A publication of Canadian Black Book is one of a few standard references used to determine the value of used vehicles. The value is sometimes called the "Blue Book Value." Blue books typically show a wholesale value and a retail value for each vehicle.

Wear and Tear

The normal damage done to a vehicle over its lifetime.

Real Estate

Mark Woehrle, Sales Representative
RE/MAX Escarpment Realty Inc.

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