NADA and Kelly
 

Can someone please explain to me how the NADA and Kelly bluebook prices can be considered a fair way to do business?

I am in the process of selling a truck and am just astounded by the discrepancies between retail, private party, and trade-in prices. Where in the hell does the used car industry get off telling me that I have to sell my truck for $2000 less than they can? Or take $3000 less if I want to trade it to them?

Does anyone else see the excessive ubfairness in an industry not only setting their prices but the prices others can charge?


PX

All you simply have to say to a customer is "Go find one". If you are indeed selling a quality unit, and they aren't wasting your time and are actually interested in doing business, they'll be back. Regardless of book values.

A vehicle is only worth what someone will pay for it.

Look at some of the selling prices for old MB diesels, for instance. Do you think kbb or nada would quote a 123 300D with 70K miles at $15K? Nope. ;)

That is all true. But people seem to be so blinded by the book info.

I have come to the conclusion that dealers are evil and I don't think I want to do business with them ever again. So, private party is all I've got.

PX

both these books are just reference material.. i've never bought a car at any of those prices.. most of the time way less but once i paid more because i wanted that particular vehicle bad..

The whole idea is that the buyer and seller would be trying to find a middle groud between paying retail, and getting wholesale. Trade-in is typically the wholesale value of the vehicle. If you wanted to off load the old vehicle quickly, this figure gives the stealership room to do any reconditioning of the car, before putting it on the lot to sell at the retail figure.

If you are a buyer, the "TMV" or private party value represents being able to pay less for the same car, since you aren't having to pay for the stealerships "overhead." As a seller, you get a little more for selling the car outright. As has been said though, you are more than free to put the full retail value, or more, on the asking for your car. If somebody wants it bad enough, they will be willing to pay the price. If not, then the car will sit, and you will have to lower the price to what the market feels the car is worth.

Well, in retail, the dealer has to make sure that everythign is within spec. You are a lying bastard that put heavy oil into your engine to mask the rod knock. Now he discovers it and has to fix it. My friend traded in a car when the ABS was not working and fixed by taking the light bulb and the AC system is shot (traded it in during winter). Guess who pays for that too. My sleezy freind and I know that there are metal shavings in the tranny. When that is discovered, guess who pays for that. I bought a car retail. There was an exhaust leak we discovered. Guess who paid for it. Guess who paid for the diff leak fix? When it sits on the lot unsold, who has to eat the loss? Well for all that, why shouldn't the dealership pad it's price too? You go retail but do you pay retail? I bargain it down.

In private party sales, I pay somewhere between trade in and retail. However, it is AS IS with no warranties implied or specified. IOW, if the brakes fail because the lines blew out and you hit something, you have no recourse. I sell you private party and I make you sign a statement that says "No warranty expressed or implied. As Is only." In PP, I have people kicking tires, taking it for a spin, asking stupid questions, etc, etc. Well, is it worth it? Depends on your time. If you are free to sell it, sure. When you trade it in, it is off your hands and IIRC, it helps you on the tax you pay for the new purchase. Like I said, if your time is worth nothing and you don't mind answering questions and letting people take it for a spin at their leisure, sure. Go sell it PP

This is all true. 2 things though.

1. Why doesn't the dealership take the time to evaluate trade-in's properly? They could weed out 90% of those cases before they happen, making the whole business cheaper for everybody. The reason is money. Why not charge everybody for the 5% of crooked a-holes out there. It is making a dishonest profit by being lazy and cutting jobs.

2. People do that to dealerships and feel justified because dealerships have been screwing people so badly for so long.

PX