red book valuation vs market value Page 6

RedBook valuation vs market value is the forecast versus the weather outside your window. RedBook crunches historical sales and specs to estimate what a car “should” be worth; the market cheerfully ignores that when supply, demand and colour-of-the-seats madness intervenes. In Australia, expect trade-in figures to sit below private sale prices, sometimes by thousands. Treat both as guides, not commandments, and you’re less likely to overpay or undersell.

• Pros: Data-driven, consistent, handy for finance and insurance benchmarks.
• Cons: Lags fast-moving markets, can undercook rare or highly optioned cars.

• Pros: Reflects current demand, location, seasonality and condition.
• Cons: Noisy; outliers, hype and dodgy ads can skew expectations.

Check live listings and recent sales on places like Tradingpost to sanity-check any number you’re given.