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Why should an owners car be valued $1,000 less? That is all
Private Party vehicles are always less than dealership or "Retail" value on KBB. It's partly based on the premise that the dealership does all the paperwork, goes through the car and checks things over, and professionally details it. Also, dealers have to at least appear to stand behind their cars.
Personally I think it's stupid to have the different values, but it's just the way it is.
Overhead cost... sounds ok I guess. Price was out of comfort for me, so I walked. Somewhat challenging to find this particular car.
Individual? They don't sell $15,000 cars, most buyers finance at those prices.
Technically I am financing, but I'm a cash buyer (using Savings Secured Loan at 1.7% interest).
As if we couldnt tell youre not very experienced in the real world already or not very smart, but plenty of individuals certainly sell "$15,000 cars". Its as close as autotrader etc.. Indivduals sell $100 - $1,000,000 cars almost anywhere actually.
Overhead cost... sounds ok I guess. Price was out of comfort for me, so I walked. Somewhat challenging to find this particular car.
Individual? They don't sell $15,000 cars, most buyers finance at those prices.
Technically I am financing, but I'm a cash buyer (using Savings Secured Loan at 1.7% interest).
I think that is an incorrect assumption. I have personally sold a number of vehicles personally at those kinds of prices and have done so to people financing the car. People do not need dealers to secure financing, and often you can do better on your own than through the dealer anyway.
In regards to KBB price, I have also found it is not representative. Generally, current local auction prices is a good place to start in evaluating a used car's value. If a dealer has it on their lot, they will want to make more than they can get at auction. Some of their price may be based on how much they have in the car too (how much they paid) and how much profit they are looking for.
Each dealer prices differently, but if a dealer is asking a set price, generally you can haggle them down considerably. Sometimes, that takes playing some hard ball and sticking to your offer.
KBB is certainly not the last word in car pricing, but used with other pricing sources, it is a guide.
I don't know how the majority feel about KBB prices, or the politics behind it.
KBB (and NADA) have their roots in the banking and insurance industries. They are guides Only for those industries, and easily ignored... they have Zero bearing on real world pricing, or would if people would stop paying those numbers any attention. I routinely buy below "trade-in" values, turn around and sell that same vehicle for above "retail" (after doing my mechanic stuff). Those numbers mean nothing to me, and I *LOVE* it when people stick to those numbers rigidly because it means that I usually get some phenominal deals when buying (always easy to tear a price apart when you know how to look for flaws in a vehicle), for buyers of my stuff, they're easy to ignore. I have one on hand now that I bought for 66% what "trade-in" value was, and have listed at market value ~ which is 50% over "retail". It's been a whole week and I've gotten 4 inquiries with one person coming to see/buy in a couple days. To "fix it up" I spend ~$250 and about 4~5 hours of my time.
What matters is what your local market supports. Some vehicles might actually be accurate to KBB numbers, others will be over-priced and still others will be under priced by KBB/NADA pricing. Just look for a vehicle that you can afford, that is in excellent mechanical shape (and for $15k that should be simple to find, but pay a mechanic to make sure), and spend your money. Forget KBB and NADA, you're doing yourself no favors by paying them any attention.
As if we couldnt tell youre not very experienced in the real world already or not very smart, but plenty of individuals certainly sell "$15,000 cars". Its as close as autotrader etc.. Indivduals sell $100 - $1,000,000 cars almost anywhere actually.
I worded that wrong, I probably should have said most just trade in their cars if they are valued higher.
Your right, I don't have much real world experience. 'm not sure how much prospects a seller can get listing a car that's worth so much money, when the majority of buyers in this range need financing.
Quote:
Originally Posted by GarageLogic
Yeah, well... That's the way it goes. Honestly. Sometimes a guy gets what he wants, other times not so much.
If you don't mind saying, what vehicle are you looking for?
By the way, 1.7% is a danged good rate!
Sorry, I do mind saying what vehicle I'm shopping for. City-data isn't exactly the nicest community.
Yes, I'm pleased with the 1.7% and the availability to shop wherever I want (not tied down to select dealerships like some car loans *cough*Capital One*cough* )
Quote:
Originally Posted by Checkered24
I think that is an incorrect assumption. I have personally sold a number of vehicles personally at those kinds of prices and have done so to people financing the car. People do not need dealers to secure financing, and often you can do better on your own than through the dealer anyway.
...
I stand corrected
I never really looked into car loans for private sells. Of the three banks I bank with, two of them only lend for authorized dealerships. I don't want the hassle of opening yet another checking account at another bank for a car loan, just want to keep things simple.
Though I have looked into it in the past. Generally lenders tend to stay away from private sales, but I just did a quick google search and I'm surprised to see PNC, and some other banks offering such service; haven't look at what their guidelines are, neither do I care.
KBB (and NADA) have their roots in the banking and insurance industries. They are guides Only for those industries, and easily ignored... they have Zero bearing on real world pricing, or would if people would stop paying those numbers any attention. I routinely buy below "trade-in" values, turn around and sell that same vehicle for above "retail" (after doing my mechanic stuff). Those numbers mean nothing to me, and I *LOVE* it when people stick to those numbers rigidly because it means that I usually get some phenominal deals when buying (always easy to tear a price apart when you know how to look for flaws in a vehicle), for buyers of my stuff, they're easy to ignore. I have one on hand now that I bought for 66% what "trade-in" value was, and have listed at market value ~ which is 50% over "retail". It's been a whole week and I've gotten 4 inquiries with one person coming to see/buy in a couple days. To "fix it up" I spend ~$250 and about 4~5 hours of my time.
What matters is what your local market supports. Some vehicles might actually be accurate to KBB numbers, others will be over-priced and still others will be under priced by KBB/NADA pricing. Just look for a vehicle that you can afford, that is in excellent mechanical shape (and for $15k that should be simple to find, but pay a mechanic to make sure), and spend your money. Forget KBB and NADA, you're doing yourself no favors by paying them any attention.
Maybe the lender situation is based on where you live. I don't know.
Either way, there are plenty of banks, credit unions, etc which will loan for private sales. Generally, they just need the VIN number and verification of clear title to write the loan.
I worded that wrong, I probably should have said most just trade in their cars if they are valued higher.
Your right, I don't have much real world experience. 'm not sure how much prospects a seller can get listing a car that's worth so much money, when the majority of buyers in this range need financing.
.
Thats just another assumption based on your very limited experience. I know very few people that finance their vehicles unless they get a 0% deal and most turn those down as well and pay cash. Theres plenty of cash vehicle transactions every day ranging from 1k to mutiple millions.
Stop assuming anything and do your research first. Not just on price either.
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