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While looking for a new(er) vehicle this last couple days with intention on buying two weeks from now, I have noticed some people use KBB while others use NADA.
Personally KBB has always been used when selling personal vehicles and adjust form there based on what I would pay for it. Which means my asking price is typically under KBB for quick sells. However, I noticed some people want top dollar for their junk.
Example: Recently looking at two 2006 Honda Ridgeline's, one was listed right at KBB, and the other was listed top end NADA for the same vehicle. The price difference was significant, roughly $3,000 difference. With the higher mileage truck being most expensive.
How do you handle a situation like this, without coming across as a low balling *******? Don't want to be rude, but the asking price is close to dealer asking prices with 1/3 the mileage.
I just simply make my offer. I'm willing to pay X amount given the condition of the vehicle I see front of me. Due to X miles and condition it's worth X to me. If the guy feels I'm lowballing he is more than welcome to make a counteroffer or go on his way and try selling to someone else.
Offer what you feel comfortable paying. This is a business transaction, you are not dealing with a friend. There is no need to worry about offending someone. If their price is to high, the vehicle will not sell.
I just simply make my offer. I'm willing to pay X amount given the condition of the vehicle I see front of me. Due to X miles and condition it's worth X to me. If the guy feels I'm lowballing he is more than welcome to make a counteroffer or go on his way and try selling to someone else.
Quote:
Originally Posted by Me007gold
Offer what you feel comfortable paying. This is a business transaction, you are not dealing with a friend. There is no need to worry about offending someone. If their price is to high, the vehicle will not sell.
These two get it. Offer what you feel the car is worth. As long as you're being reasonable no one is going to be offended. If the salesman gets chipper with you, turn around and walk out. If they don't know how to conduct business in a courteous and polite manner, then they don't deserve your business.
Too many people walk into a car dealership expecting a battle. It's simply a negotiable business deal. There's no reason either side should be rude about it or offended by it.
You could look at the same age, mileage truck and 10 different dealerships and find 10 different asking prices, which will be all over the map.
You can use KBB, NADA, Edmunds, black book, and/or whatever other resources to try and determine a fair purchase price. If you run them all, you will also see the prices do vary, and sometimes very significantly.
Ultimately, as has been said, you need to be comfortable and happy with the price your paying. For example, if the worst condition truck you find has the highest asking price... so what? If you think it is worth $3000 less, then offer them $3000 less. The worst that happens is that they say "no."
Neither one has anything to do with the real prices... They are both independent opinions by each company....
It has been my experience in the past that insurance companies would rely heavily on NADA Black Book values, in determining the value of vehicle that has suffered a loss, due to damage or theft.
KBB and NADA are almost worthless for determining what a car is worth.
Banks, dealers etc don't use it. Well dealers like to toss it out there when they are trying to sell you a vehicle for top dollar. Ask them about it when your trading something in and you will get laughed out of there.
If I am trying to determine a used car price I start with how much the MSRP was when it sold then reduce that by 20% for the first year of use and 15% for each additional year. So if I am looking at a 4 year old car that sold for $30K then I my starting price is going to be about $15K.
Then I look at cars.com and autotrader.com and search nation wide for that year model and the year model newer. After looking through the prices for a bit you will notice that you can find some reliable price points where there are a large number for sale. Say for this car here you might see a few for $13.5K and maybe a couple dozen at $14.5K then several hundred at $15K. Usually what you will see is that a large number become available around 10% higher than our $15K estimate. So thats gonna be $16.5K. That would confirm your original price and you should be trying to find a dealer that gonna meet that price of $15K.
I don't personally like to use craigslist as I see too many people who refuse to accept the fact that a car is a rapidly depreciating asset. And lots of scammy dealers like to post stupid predatory prices from buy here pay here lots.
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