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Because KBB hasn't adjusted for all the lost inventory due to Cash for Clunkers. All used car prices are higher than they were five years ago, but KBB still depreciates on the same linear scale (age x mileage).
Cash for Clunkers has nothing to do with it. KBB's prices are based on market values. That means what people are paying. That of course goes up if the supply is tight. Cash for Clunkers ended over four years ago. Studies have shown that of 690,000 vehicles that participated in the program only 125,000 would not have been traded in anyway. C for C also was dominated by mostly terrible vehicles, like old Ford Explorers, that would have little desirability in the used market.
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Maybe the 'Sidekick' had a VW Turbo Diesel (very popular conversion, and not cheap!)
KBB and NADA are only averages (helping (st)dealers be profitable in the USA wide used market), and most sellers are not 'average'. Often the KBB is quite low for a 'one-owner / by owner'
It was a real crime when Autotrader got bought out by the dealers, but they had QUICKLY realized the internet / and scale of advertising was a threat. It was SO nice to search nation-wide, one-owner By Owner... you could glean the crop of available cars in USA in about 5 minutes. AND you could limit your search to NON-RUST belt!!! It was So nice, but disappeared right about Y2K.
BTW:, I buy in Dallas and Austin for best deals I can find in USA for my choice of vehicles. You can do an rss feed on nationwide craigslist and capture a GREAT deal on a non-rust car / truck. Get a $89 one-way flight and have a great weekend road trip!
Look at the price of new vehicles. Way up there. That in turn brings up the value of used vehicles.
This. Right here.
A person selling a vehicle may still have a note on it, and is looking to clear the note. They certainly do not want to be paying on a car they no longer even own.
No, the books rely on REPORTED data. The data is reported by sellers, and it's in the sellers' best interest to bump up the prices they get for vehicles; so most of the time they do.
What a car is worth is what someone is willing to pay for it. If I want a red 2005 Chevy 2500 extended cab with a v8 gas engine, stick shift, rubber floor mat, and heated seats, I might pay a little more for that truck with that specific equipment than the typical truck shopper. So in a case like that a vehicle might bring more than the "book" value. Otherwise, in my experience, KBB prices tend to be 15-25% higher than what the vehicle typically sells for.
And I really wish people would stop blaming Cash For Clunkers for everything. That stupid program *MIGHT* have caused a minor bump in the price of mid-tier used cars for one year, but if so the market has more than corrected itself since then. And I seriously doubt that it had any impact, since the vast majority of cars traded on that program were cars that weren't really being driven on a regular basis anyway.
I was looking for a new work truck but seeing the stupid prices for trucks that need work have more miles than my work truck I'll just keep what I got. I think a lot of people throw some price out there because they and their friends are convinced that the vehicle is "worth" it. Problem is most the people who think its "worth" it are the people close to the owner and if they were buying it all of the sudden that worth it price wouldn't be worth it. Also people tend to add up all the " improvements" they did. That lift kit tires and rims or booming stereo surely must be worth what he paid for it so they tack that on. a lot of people tend to price their cars like the other cars for sale. They confuse asking price with sale price. So if that guy selling a pristine 1999 ford whatever that was babied all its life and he wants (rightfully so) top dollar surely their beat to death 1999 ford whatever must be worth close to that price.
It's like the guy who has a old rusted out hot rod and is trying to get the same as a guy selling a restored one because that guy is asking that much for one. The condition is inconsequential in his thinking of worth.
When I sell a car I put it for a fair price. I leave a tiny bit of wiggle room but its priced pretty low. I have all the maintenance receipts, my cars are well taken care of. In fact interior wise they look brand new no joke. When I sell something I actually want to sell it not haggle over 200 or hold out for that last 50 bucks.
For example I have a buddy who wants a HUMVEE. he's willing to pay 40-60 k for one. Its a USED vehicle that is high maintenance in every way. For that money he could buy a new truck or jeep that would be light years ahead of the HUNVEE. And in the end he still only has a used vehicle.
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