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Guest
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 Posted:
Tue Nov 01, 2005 8:46 am Post subject:
Why is KBB so much lower than everyone else? |
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When I see what is selling on ebay, for sale in the newspaper and
compared to the NADA kbb is always way low. Why is that?
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Guest
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| Posted:
Tue Nov 01, 2005 9:12 am Post subject:
Re: Why is KBB so much lower than everyone else? |
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So how do I figure out how much to pay for a car? I am looking at a
1999 Chevy Express. It is a conversion, van but not a hi-top,no tv,
cloth, 80k miles, good condition. They want 10,500, but sometimes that
is right based upon ads and sometimes it is not, like the high bidder
on ebay or kbb, yet other times it is on nada. If I went with kbb,
it'd be about 6700. And that is where the ebay high bidders all hit
around, but they never meet the reserve (like you said). Yet, on auto
trader from individuals, they want 10000. But I notice they are still
on the autotrader.com, so they haven't sold. I don't know if it is
worth 10,500 or not.
I appreciate that long explanation you gave. Thanks. |
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C. E. White
Guest
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| Posted:
Tue Nov 01, 2005 9:12 am Post subject:
Re: Why is KBB so much lower than everyone else? |
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<needin4mation@gmail.com> wrote in message
news:1130813161.175906.149670@g44g2000cwa.googlegroups.com...
| Quote: | When I see what is selling on ebay, for sale in the newspaper and
compared to the NADA kbb is always way low. Why is that?
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Probably because they are closer to the correct price. NADA generally quotes
"I wish I could sell the car for this much" price (the retail price - think
of it as an MSRP for a used car). And actually the KBB retail price is also
usually pretty high. When you are talking about Ebay, are you talking about
actual auctions that resulted in a sale, or reserves not met, or buy it now
prices? I bought Thunderbird off Ebay last year. Before I actually bought
one, I was the high better on at least a dozen auctions where I did not meet
the reserve price. I still keep up with late model Thunderbird auctions on
Ebay, and less that 1 in 25 actually results in a winning bid, and probably
at least 10% of those are bogus (friends running up prices, people who did
not mean to actually buy the car, etc.). If you want a good idea of the
wholesale value of your car, go to a place like Carmax (if they have them in
your area). They'll quote you a firm price, that will probably not make you
happy. However, the last time I got ready to trade a car, I used the Camax
offer to leverage a better trade in deal. I had negotiated a decent price on
the new car, and then asked about a trade. They low balled my trade, but I
pulled out the Carmax offer and they bettered it. I probably could have sold
the car to a private individual for more if I had worked hard, but I had
listed it in the paper and on-line for a month without a single call. You
might also see if your banker has a copy of the auction price book ("black
book"). This book is a survey of prices paid for used cars at auctions,
which is a true indication of what a dealer will pay for a car. The NADA and
KBB retail prices are based on dealer and newspaper ad asking prices, not
selling prices. The NADA trade-in price is based on the reported trade in
price, which is often inflated because of the way dealers play games with
the MSRP of the new car and the trade in value of the trade.
Ed
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C. E. White
Guest
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| Posted:
Wed Nov 02, 2005 2:06 am Post subject:
Re: Why is KBB so much lower than everyone else? |
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<needin4mation@gmail.com> wrote in message
news:1130816523.234579.280680@g14g2000cwa.googlegroups.com...
| Quote: | So how do I figure out how much to pay for a car? I am looking at a
1999 Chevy Express. It is a conversion, van but not a hi-top,no tv,
cloth, 80k miles, good condition. They want 10,500, but sometimes that
is right based upon ads and sometimes it is not, like the high bidder
on ebay or kbb, yet other times it is on nada. If I went with kbb,
it'd be about 6700. And that is where the ebay high bidders all hit
around, but they never meet the reserve (like you said). Yet, on auto
trader from individuals, they want 10000. But I notice they are still
on the autotrader.com, so they haven't sold. I don't know if it is
worth 10,500 or not.
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Well the van is worth what a willing seller is willing to sell it to a
willing buyer for. If a local dealer has one that you want, deicide what it
is worth to you and then offer that much. Stick to your price. The worse
that will happen is that they will sell it to you at that price. I'd offer
them the KBB trade in price at the most. If it has been on the lot for a
while, they are likely to take it. I certainly would ignore the $10,500
price. That looks like a sucker price. A price they can knock off a couple
of thousand to make you feel good about getting screwed.
Ed |
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Guest
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| Posted:
Wed Nov 02, 2005 4:01 am Post subject:
Re: Why is KBB so much lower than everyone else? |
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| It is an individual. |
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C. E. White
Guest
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| Posted:
Wed Nov 02, 2005 4:49 am Post subject:
Re: Why is KBB so much lower than everyone else? |
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<needin4mation@gmail.com> wrote in message
news:1130882503.375183.75830@f14g2000cwb.googlegroups.com...
| Quote: | It is an individual.
|
Oh...well that is tougher. Individuals often over value their vehicles. They
harbor illusions that they have taken really good care of the vehicle and
that it is therefore worth a lot more than one at a dealer. They look at
things like the NADA retail value and decide that since their vehicle is
much better than average, that they ought to get an even better price than
the NADA retail value. Also, they may still owe money on the vehicle and
feel that they need to sell it for a certain amount so they can pay off the
loan. Buying from a private individual can be either a blessing or a curse.
If they have done their homework and tried to trade the vehicle in or sell
it to a place like Carmax, then they know what the real wholesale value is
and shouldn't expect you to pay more than a few hundred to a thousand over
that amount. If they have not done their homework, and are hard headed, you
might as well walk away. You could try showing them the KBB Private Party
value (which I find to usually be high), recent Ebay auctions that actually
closed, etc. and see if you can move them on price. You could also ask the
bank or credit union for the loan value of the vehicle and use that as a
negotiating point. I suggest just making an offer and tell them it is good
for x-days and then walking away. If you don't need the van right away, they
might decide your offer is fair. Or they might find another buyer who is
willing to pay their price.
Ed |
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NN
Guest
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| Posted:
Fri Nov 04, 2005 9:12 am Post subject:
Re: Why is KBB so much lower than everyone else? |
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very good and true advice, I find private parties to have the greatest
variation in what to expect during negotiation. But mostly as
mentioned, overpriced. |
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