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Some Tips About Auto “Values”
Much is written and discussed regarding the
value of automobiles. There are websites,
magazines, books and internet plus talking to
salespeople. There is so much for a shopper
to consider. Such information is sometimes
incomplete or out of balance and often leads
to misunderstandings. Here’s some of my
perspective that may relate to your auto
shopping. I hope this is helpful;
8‘Book
values’ such as Kelley, Edmunds, NADA and
others are ONLY a guide and unfortunately are
not very accurate. There are many reasons for
this which professionals are very aware of. A
couple of extreme examples are that certain
pickups and some Japanese sedans of certain
descriptions routinely sell for 10%-20% OVER
‘book’ value. And on the other end of the
scale, most American made cars can be bought
with low miles in immaculate condition for
10%-20% below ‘book’ value. So don’t overly
focus on ‘book’ value, be it above or below
the price of the vehicle you are considering.
8The
specific condition, mileage and history of a
vehicle each has an enormous impact, plus or
minus, on fair-market value. When shopping
it’s important to strongly consider each of
these factors. Some folks regret that they
focus too much on price and as a result don’t
get the best overall ‘value’ available.
8Most
dealers buy ‘retail ready’ vehicles (the work
has been done already to prepare them for
sale) from auctions where they have had to
aggressively compete with dozens or hundreds
of dealers in order to acquire the vehicles
they sell. That leads to higher overhead and
higher prices. As for me, I very carefully
and selectively buy only from quality, private
individuals who are willing to sell for modest
prices. Then, I invest much of my own time and
effort into making the vehicle ‘retail ready’.
This process results in premium quality, local
vehicles which are an excellent value.
Happy
shopping,
Rick Bohr
