A Cars forum. AutoBanter

If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Go Back   Home » AutoBanter forum » Auto newsgroups » General
Site Map Home Register Authors List Search Today's Posts Mark Forums Read Web Partners

How do they come up with Used Car pricing guides



 
 
Thread Tools Display Modes
  #1  
Old January 31st 05, 11:17 PM
dc
external usenet poster
 
Posts: n/a
Default How do they come up with Used Car pricing guides

Hello,

Does anyone out there know how Kelly, NADA, etc. come up with their
used car prices? Do they use some formula, statistics, actual pricing
data, some combination?

Thanks,
dc

Ads
  #2  
Old February 1st 05, 01:44 AM
sdlomi2
external usenet poster
 
Posts: n/a
Default


"dc" > wrote in message
oups.com...
> Hello,
>
> Does anyone out there know how Kelly, NADA, etc. come up with their
> used car prices? Do they use some formula, statistics, actual pricing
> data, some combination?
>
> Thanks,
> dc
>

Dunno about today, but at one time, NADA derived their prices from
questionnaires they furnished to used-car managers at dealerships. Just
imagine, for instance, a Buick u/c manager who wanted to get top prices for
his used Buicks when he sold them---what would he do? (Easy): inflate the
prices he was actually allowing on trade-ins when he completed the
questionnaire. Fair? Accurate? You be the judge!
I was in the car business for a # of years--was late in my career before
I ever saw a Blue Book! And, during my last years in the business, Kelly
was a 'best friend' when it came down to the customer shopping my lot with a
Kelly book in his hand. or an NADA book, for that matter.
BlackBook, a weekly wholesale publication, used to be, & still is as far
as I know, developed from a BB-rep. who physically takes notes of cars
actually being sold along with his determination as to whether it was Rough,
Average, Clean, or Extra-clean--those 4 categories. It had no retail
values--only wholesale. And we dealers relied more on BB than we did on
NADA, for reasons already quoted.
HTH & good luck. s


  #3  
Old February 1st 05, 03:15 AM
external usenet poster
 
Posts: n/a
Default

with there being so many models, brands and vintages out there today, i
wonder how much work it must be to collect a useful sample?! there
must be some extrapolation involved somewhere...

  #4  
Old February 1st 05, 03:53 AM
Rod Speed
external usenet poster
 
Posts: n/a
Default


> wrote in message
oups.com...

> with there being so many models, brands and vintages out there
> today, i wonder how much work it must be to collect a useful
> sample?! there must be some extrapolation involved somewhere...


Regardless of the origins, I bet that today there is a real sense
in which the guides drive the market and the pros particularly just
have their own variation on the guide price where they dont agree.


  #5  
Old February 1st 05, 07:14 AM
sdlomi2
external usenet poster
 
Posts: n/a
Default


"Rod Speed" > wrote in message
...
>
> > wrote in message
> oups.com...
>
> > with there being so many models, brands and vintages out there
> > today, i wonder how much work it must be to collect a useful
> > sample?! there must be some extrapolation involved somewhere...

>
> Regardless of the origins, I bet that today there is a real sense
> in which the guides drive the market and the pros particularly just
> have their own variation on the guide price where they dont agree.
>
>

I'm inclined to agree with you. However, one problem has recently
arisen: REAL EXAMPLE: Black Book, and maybe NADA--dunno for sure--shows
clean wholesale on Honda Odyssey's like several (meaning 2 or more?)
thousand dollars higher than they are bringing in the real market. Makes it
hard to sell them at whls. markets, 'cause so many dealers have relied on BB
when trading for them. Then, when he gets it to market and it brings way
less than he put in it to trade for it, he can't sell it--or does so at far
less than he'd planned. And unless he made a screaming deal up front, hiis
2-car washout will result in a loss. So, even tho' guides may taint prices
somewhat, like in this particular case, it causes losses when it can't MAKE
the would-be buyers step up & pay the higher book reflection of worth.
So, either your idea, with which I agree somewhat, has to really kick
in, or else BB has gotta get off their "extrapolating **rses" & get the real
values in place. s


  #6  
Old February 1st 05, 08:39 AM
Rod Speed
external usenet poster
 
Posts: n/a
Default


"sdlomi2" > wrote in message
...
>
> "Rod Speed" > wrote in message
> ...
>>
>> > wrote in message
>> oups.com...
>>
>> > with there being so many models, brands and vintages out there
>> > today, i wonder how much work it must be to collect a useful
>> > sample?! there must be some extrapolation involved somewhere...

>>
>> Regardless of the origins, I bet that today there is a real sense
>> in which the guides drive the market and the pros particularly just
>> have their own variation on the guide price where they dont agree.
>>
>>

> I'm inclined to agree with you. However, one problem has recently
> arisen: REAL EXAMPLE: Black Book, and maybe NADA--dunno for sure--shows
> clean wholesale on Honda Odyssey's like several (meaning 2 or more?)
> thousand dollars higher than they are bringing in the real market. Makes it
> hard to sell them at whls. markets, 'cause so many dealers have relied on BB
> when trading for them. Then, when he gets it to market and it brings way
> less than he put in it to trade for it, he can't sell it--or does so at far
> less than he'd planned. And unless he made a screaming deal up front, hiis
> 2-car washout will result in a loss. So, even tho' guides may taint prices
> somewhat, like in this particular case, it causes losses when it can't MAKE
> the would-be buyers step up & pay the higher book reflection of worth.


Yeah, bound to be some obvious problems like that.

> So, either your idea, with which I agree somewhat, has to really kick
> in, or else BB has gotta get off their "extrapolating **rses" & get the real
> values in place. s


Or just realise that some book values have problems.
Bet the best of them have realised that for decades now.


  #7  
Old February 1st 05, 02:21 PM
C. E. White
external usenet poster
 
Posts: n/a
Default

NADA sureveys ads and dealer asking prices. As far as I can
tell, the NADA prices are fantasy prices. They are what the
dealer or individual wishes they could get. Only good prices
are compliations based on vehicle auction prices (black
book). Those are harder for average Joe's to get. Kelly and
NADA are more like MSRP that actual bottom line selling
prices.

Ed

dc wrote:
>
> Hello,
>
> Does anyone out there know how Kelly, NADA, etc. come up with their
> used car prices? Do they use some formula, statistics, actual pricing
> data, some combination?
>
> Thanks,
> dc

  #9  
Old February 1st 05, 03:53 PM
sdlomi2
external usenet poster
 
Posts: n/a
Default


"Rod Speed" > wrote in message
...
>
> "sdlomi2" > wrote in message
> ...
> >
> > "Rod Speed" > wrote in message
> > ...
> >>
> >> > wrote in message
> >> oups.com...
> >>
> >> > with there being so many models, brands and vintages out there
> >> > today, i wonder how much work it must be to collect a useful
> >> > sample?! there must be some extrapolation involved somewhere...
> >>
> >> Regardless of the origins, I bet that today there is a real sense
> >> in which the guides drive the market and the pros particularly just
> >> have their own variation on the guide price where they dont agree.
> >>
> >>

> > I'm inclined to agree with you. However, one problem has recently
> > arisen: REAL EXAMPLE: Black Book, and maybe NADA--dunno for sure--shows
> > clean wholesale on Honda Odyssey's like several (meaning 2 or more?)
> > thousand dollars higher than they are bringing in the real market.

Makes it
> > hard to sell them at whls. markets, 'cause so many dealers have relied

on BB
> > when trading for them. Then, when he gets it to market and it brings

way
> > less than he put in it to trade for it, he can't sell it--or does so at

far
> > less than he'd planned. And unless he made a screaming deal up front,

hiis
> > 2-car washout will result in a loss. So, even tho' guides may taint

prices
> > somewhat, like in this particular case, it causes losses when it can't

MAKE
> > the would-be buyers step up & pay the higher book reflection of worth.

>
> Yeah, bound to be some obvious problems like that.
>
> > So, either your idea, with which I agree somewhat, has to really kick
> > in, or else BB has gotta get off their "extrapolating **rses" & get the

real
> > values in place. s

>
> Or just realise that some book values have problems.
> Bet the best of them have realised that for decades now.
>
>

Quite true. Not merely trying to get included in your category (but
that too!!!), I used to jokingly tell my buddies when they'd see me looking
at a book & tell me 'You'd better throw that thing away--it'll get you in
trouble': my reply was a standard, "At least when I find this value, I will
know one figure NOT to pay for it"!.
Have a good 'un. s


 




Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Valve guides - Jeep I-6 Ralf Jeep 6 January 4th 05 10:46 PM
Any Audi dealers offer invoice pricing? US-specific Me Audi 0 December 14th 04 08:22 AM
Lights Out Racing Track Guides Jone Tytlandsvik Simulators 0 December 5th 04 12:46 AM
The Ultimate Survival Guides! Halmyre Alfa Romeo 0 September 22nd 04 08:42 PM
'04 Jetta pricing - good or bad deal? Kevin Gibbons General 0 May 25th 04 10:24 AM


All times are GMT +1. The time now is 10:08 PM.


Powered by vBulletin® Version 3.6.4
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright ©2004-2024 AutoBanter.
The comments are property of their posters.