Well Rick, I guess I have to take exception to some of your statements, at
least in my area of the country. You see, for over 22 years, I was either a
salesperson, finance manager, sales manager, used car manager, or a general
sales manager at Saturn, Audi, MB, Pontiac, Chev, or Buick dealerships.
Used car managers across the country use the Black Book to help assess the
value of a trade. Black Book surveys auctions across the country and
publishes regional editions. Black Book is published weekly. Never heard
of Black Book? That's because it is only available to dealers. It does not
feature a consumer edition. Black Book lists only wholesale and has
different values based upon condition...rough, poor, good, excellent, and
loan. Most trade ins fall in the rough to good area. Google it.
NADA is definitely NOT used by used car managers. As evidenced by Larry's
original statement, NADA pegged his car at $8500, way too high. No used car
manager that wishes to keep his job will use the highest figure as a guide
to a trade value. NADA does list a wholesale (trade-in) and retail value.
Traditionally, lenders would use the NADA loan value to determine how much
to lend on a certain car. Perhaps this is because insurance companies use
the NADA retail value for premium and replacement values.
KBB (blue book) has raised it's value (intrinsic, not car) in recent years.
As little as 8 or 10 years ago, although it was a common name, no one but
the public used the KBB value.
Perhaps the used car manager at your dealership convinced the employees that
NADA is what he used. By doing that, he could sell a car to an employee at
'wholesale' value and still make a good profit.
If I were selling, I would show the prospect the NADA value, and if I were
buying, I'd get hold of a Black Book and show him the appropriate value
there.
I do agree with your last statement though, only a large number of sold cars
in a given area can provide a reasonable value. With old cars, there may be
enough sold nationally, but the variance in regional values makes the
national value pretty worthless.
Gordie
--------------------------------------------------
From: "Richard Ewald" <richard.ewald at gmail.com>
Sent: Monday, August 22, 2011 12:21 PM
To: <mgbob at juno.com>
Cc: <mgs at autox.team.net>
Subject: Re: [Mgs] Selling my '79 MGB Limited Edition
> FWIW I have worked at car dealers (service manager) and we were told that
> NADA tracked transaction prices to establish their values. The numbers in
> NADA are usually much lower than Kelly Blue Book. Blue Book is great if
> you
> are selling (but don't plan on getting those numbers from a savvy buyer)
> NADA numbers are what our used car manager used as a starting place when
> evaluating trade ins. So if you are selling, show the buyer Blue book, if
> you are buying, use NADA.
> The problem with NADA or any other evaluation service on very old cars
> like
> LBCs is there are so few of them sold, and their condition is all over the
> map, it is tough to get a proper average price.
>
> Rick
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