Blue Book Used Car Prices, What You Need to Know About Used Car Pricing

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Blue Book Used Car Prices, What You Need to Know About Used Car Pricing - Before buying a used car at a dealership, you really need to understand how a dealership gets the price of its label.

For a dealership, a high-priced used car is a sum of money that must be collected. You can bet that you prefer to see the money sooner or later, because in most cases the money you buy is a bank loan that you receive every month.

Blue Book Used Car Prices

To determine the sale price of a car, the dealer must first determine its own costs.

● First, there is the price you paid to buy the car. You could sell it for a new car, that is, take it instead of money, or buy it from a private seller, wholesaler or auction.

● Second, the amount paid for the repair and renewal of the vehicle is added.
It can be a body, new parts and details.

● Third point: if you are a good businessman, you will consider, among other things, interest rates on loans, commissions, insurance and other operating costs paid to the seller.

After verifying current and expected costs, decide the amount of inventory that will be included in the sale price. The dimensions of the impact reflect the condition of the vehicle, the brand, the model, the mileage, the alternatives and, above all, the market demand. Many retailers also include a "commercial proposal." They admit that most people do not buy a new or used car unless they have the idea of ​​signing contracts and buying them at a lower price than indicated. Therefore, the seller builds a pillow large enough to give the buyer a discount and finally do what he thinks is appropriate, and possibly even more than a decent profit.

How much does the dealer negotiate?

If the car is not a unique, warm and coveted model, there is usually enough room for negotiation. If the car has been in the product for more than a few months and the brand is very popular, it may be ready for sale at a much lower price. However, there is a price that does not go beyond. At this price, you know, according to market information, that comparable cars will be auctioned. A dealer will never pay more for a used car than he knows he can get his money back if he has to auction it. As a result, prices are always based on current auction prices. As a result, many competitors also have lower prices than auction prices (or wholesale prices). Retailers continue to buy cheap and sell expensive.

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A number you really need to know

When designing a commercial strategy, it is clear that you are studying which cars are like auctions. The auction results significantly determine the wholesale price of a used car. If you use a wholesale number, add $ 1,000 plus the reseller cost and subtract from the requested price, so it is worth choosing a reseller. From there, you can specify the benefit you want to generate from the seller. (Oh, how do retailers hate this when a customer decides to win?)

Some concrete examples of used car prices

Recently we saw a GM car for sale for $ 8,500. After spending $ 400 on repairs, he billed them $ 13,999. These costs increase by almost 60%. The buyer negotiated the price of $ 12,400. He thought he had done a lot and the dealer who had $ 3,500 in his pocket said nothing to stop him.

Another example: a sales manager serving a completely unconscious customer gave him $ 22,900 for late collection, a luxury sedan. According to the auction reports, the real value of the wholesale transaction was $ 27,550. Two weeks later, the replacement, all refined and clean, at the used car dealership (sorry, worn) for $ 34,995. Now you know why your resellers and your after-sales service maximize your profits. (It is certainly not a new automotive industry, but it is the subject of another article).

In this way, it establishes the "wholesale price"

Now understand why knowing the current wholesale value of a used car, whether you buy it or not, is one of the most important pieces of information you can have. The Automatic Banking Department is one of the sources of information. They usually have the latest price lists and even auction reports that show what different brands offer in the auction market.

Reserve your prices

The industry uses wholesale books for sale: the official NADA used car guide, the Black Book National Auto Research, the Kelley Blue Book market report and the Galves car price list. These books, and those available online, are intended to reflect the average wholesale prices charged by many cars in the country. The only problem is that I don't always agree. Compare the recommended wholesale prices for Chevrolet Lumina in the same month:

Kelley Blue Book $ 7,875 [See west coast prices]

$ 6,875 [combination of auction and reseller reports]

Black paper 5,650-8,850 USD [Distributor Auction Reports]

Go to the source

The best source of value for used cars is directly in the auction market reports. Here you will find national and regional wholesale prices. Unfortunately, these reports are only available to retailers. Because Smart Shopper is the only source we know about offer price reports. At very low costs, you get the latest wholesale prices (almost all cars) regionally and nationally. You can find them at [http://www.Car-Smart-Shopper.com].

When you get the wholesale price, you can find out the additional costs (such as repairs) that the dealer spent on the car. How do you define this number? Ask the seller. The dealer will probably tell you exactly what he did to improve the car and justify the sale price.

In the next article, we will discuss the use of a wholesale number as an auction tactic.

Bob Ford has worked for more than 30 years and writes for the automotive industry. The extended presentation goes from the factory wiring to the retailer. He had almost free access to quick relationships, crisis management sessions and a rather strange and even questionable behavior.

Ford wrote: "What dealers don't say." "Manual" to buy a new and used car. Identify what to look for and what to look for, and provide negotiation strategies and inspection guidelines to help shoppers avoid fraud and difficulties.

Press / reading: Ford has appeared on television as an expert on the Today Show, Fox News, CNN, many local cable programs and dozens of radio calls. He is invited as a speaker by organizations and social associations. He is also the editor of Young Money magazine.

Bob Ford has worked for more than 30 years and writes for the automotive industry. The extended presentation goes from the factory wiring to the retailer. He had almost free access to quick relationships, crisis management sessions and a rather strange and even questionable behavior.

Ford wrote: "What dealers don't say." "Manual" to buy a new or used car. Identify what to look for and what to look for, and provide negotiation strategies and inspection guidelines to help shoppers avoid fraud and difficulties.

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