Kbb prices seem off

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I have thought this for some time but kbb and even nada and Edmunds are very low in my area. Example I've been looking at mustangs well an example is an 06 v6 manual trans mustang in good to very good shaoe, the average listing price is between 5-6k and people are selling them for 5 all day long. The dealer prices aren't much different than the private party prices but people are paying it. Kbb says they are only worth 3-4400. However I can promise you if I search for any for even 5k and under I will not find a single one within a 200 mile radius. Are these price tools just wrong? Or???
 

mjk

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Seeing the same thing in MN, for other vehicles. As an example 1st generation Tundras, the ones that are in very good shape, sell well above any values listed. Those trucks are a hot buy, because of the demographics of this market. Of course, they are getting pretty hard to find, unless they are bought up here from salt free states.
 
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You all just realizing this internet scam! If you want a real laugh, go to True Car. When I look for a car value, I'll generally go to the dealer websites and see what they are selling them for. You can adjust YOUR price accordingly. Dealers will make $3000.00 on most trade ins that I see. And forget about that "dealer prep" stuff like brakes, oil change, tires, etc. Generally it gets washed and out on the lot it goes. My last trade in was a 2008 DTS to Mercedes. Had to beg them for $12,500. ( first offer $11,000.00) Went back the next day for something and a buyer was picking it up for $15,000.00! Tires were shinier though! LOL
 

UncleDave

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KBB, Edmunds NADA are all dealer tools more than anything, just guides. They are laughably applied based on weather they are buying or selling. " we'll offer you 5K for a trade in" - yeah but KBB says its worth 7500- " well sell it kelly then" - I know what KBB(NADA Edmunds But) says but Im sorry sir - the market for 1970 Hemi Cuda convertible 4 speeds is just soft right now.......
 

NO2

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Used car pricing is dropping very rapidly now and the news has not caught up to private parties yet. And asking price in ads is not selling price. A lot of the pricing is based on auctions and there is a glut of used cars since people are still turning in their leases and not replacing their vehicles. Why bother if you have nowhere to drive? There should also be a flood of repos with the unemployment rate >20%, which will further depress the market. Finally the relatively lower cost of new cars w 0% 72mo financing, rebates, etc also pushes down used car pricing by reducing demand. I expect people will also migrate toward lower cost new vehicles with economic uncertainty. $60,000 pickups are not going to be as popular.
 
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This may be out of date, but last I heard KBB was based on asking price and Edmunds was based on selling price. Last time I sold a car directly, almost a decade ago, I copied a pseudo Moroney sticker from KBB and put it in the window and used Edmunds as an actual price to let the car go for. There was a significant spread. I've made offers to dealers based on Edmunds price, but no one ever agreed to it.
 
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KBB is usually significantly higher than real world selling prices, but certain vehicles are more desirable than others, especially convertibles in spring... except for the rare exception of the blankety-blank outbreak causing depressed pricing. Yes KBB is a dealer selling tool while I've found Edumunds to always be closer to reality, except that these are only generalizations and each specimen of vehicle may have its own upgrades, or repairs needed.
 
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ram_man

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Around here atleast it's the opposite. Kbb is significantly lower than what people are getting for their vehicles. Example friend of mine listed his old car for 2500 it blue books at 1800 in very good shape on the high end. He got $2300 out of it and it didn't take but a couple days for that to happen.
 
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Originally Posted by JohnG
You all just realizing this internet scam! If you want a real laugh, go to True Car. When I look for a car value, I'll generally go to the dealer websites and see what they are selling them for. You can adjust YOUR price accordingly. Dealers will make $3000.00 on most trade ins that I see. And forget about that "dealer prep" stuff like brakes, oil change, tires, etc. Generally it gets washed and out on the lot it goes. My last trade in was a 2008 DTS to Mercedes. Had to beg them for $12,500. ( first offer $11,000.00) Went back the next day for something and a buyer was picking it up for $15,000.00! Tires were shinier though! LOL
Yep. TrueCar is a joke. They should be called FalseCar. They're funded by auto dealers. They are paid by dealers to get your contact info. Anyone who thinks they have your best interest in mind is foolish.
 
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Originally Posted by ram_man
Around here atleast it's the opposite. Kbb is significantly lower than what people are getting for their vehicles. Example friend of mine listed his old car for 2500 it blue books at 1800 in very good shape on the high end. He got $2300 out of it and it didn't take but a couple days for that to happen.
The older the vehicle gets, the less appropriate any of the estimation services are. Once you get down to $2500 or less, they must all assume a vehicle in great condition, is still relative to its age. Garage kept, washed and waxed, and minimum rust, (even new tires), let alone mileage and timely repair/records, makes a substantial difference in that price range, makes the difference between a cherry you want, and will fix up, vs a clunker you just settled for and hope to get 2 years out of, that you won't be doing any more maintenance to than necessary (besides changing oil of course).
 
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It's a marketing scam, I'm sure there is some subscription network that drives prices... if all the dealers in a given zip code are paying the KBB cut, the trade-ins are worth less and the used car prices at the dealer cost more. In zip codes with low dealer participation, the numbers are a little closer (with the used car dealer price taking a hit). This would mean dealer participation in the KBB/NADA pricing sham would drive additional profits into the dealer's pockets. Sure, it may be right up conspiracy alley, but every time we turn around we find some other way they are fleecing us. Last time I negotiated a used car on a dealer's lot, I used the KBB price for my zip and not the dealer zip for my reference (apparently my local dealers don't fully participate LOL). Dealer's response: "Well then go buy it from KBB." My response: "No problem." I walked out and didn't look back, if they were willing to lose a sale on a 5 year old vehicle for a $600 price difference, so be it. I walked out to my car, searched local dealers on my phone, drove 3 minutes to the other dealer, and drove home with my new car from a different dealer and got the price I wanted. I purposely drove past the first dealer in the new car and waved as I went past.
 

ram_man

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I am bringing this thread back to share some recent news. We have a 2010 kia forte sx for sale 13100 great condition. It blue books between 2970-5359 which is a big swing but regardless. A focus from the same year is worth between $5800-$8100 for whatever reason the Kia value is VERY low even though it would be a nicer better car in better shape than most other cars that are comparable. I have it listed at 5650 and I get people telling me that it's priced way above blue book. Ugh I hate kbb, nada and the rest of them they are so unreasonable in so many instances.
 
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I was car shopping recently, and just bought my used Honda Fit a few weeks ago. Prices asked were all over the scale, often way to high. My 2008 Fit, which in Canada should be selling for $3,000 to $4,000 depending on condition and kms, was advertised between $2,100 up to $11,000. Some people just want to get rid of their car quickly, and some really don't care if it sells at all, but if a sucker is willing to pay 3 times too much for it, then sure they will sell. There seems to be a lot of used cars for sale right now in BC, so haggling on price is pretty easy.
 
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KBB is average selling price NOT asking price*
Only if you mean avg seller prices from agents that report to them. KBB has no idea what the avg private party sale price vs true vehicle condition is.

Did you report your last used vehicle sale price and condition to KBB? Neither did I.

KBB's greatest incentive is to tailor numbers towards sellers looking to maximize profit, specifically auctions and dealers that report to them.

The two wildcards in this are that some geographic areas, mostly major cities, can make value go up, as has the combination of rising new vehicle pricing and especially that pandemic thing, causing both a personal reassessment of property value and a supply chain problems.
 
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CKN

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I was car shopping recently, and just bought my used Honda Fit a few weeks ago. Prices asked were all over the scale, often way to high. My 2008 Fit, which in Canada should be selling for $3,000 to $4,000 depending on condition and kms, was advertised between $2,100 up to $11,000. Some people just want to get rid of their car quickly, and some really don't care if it sells at all, but if a sucker is willing to pay 3 times too much for it, then sure they will sell. There seems to be a lot of used cars for sale right now in BC, so haggling on price is pretty easy.
The FIT is not a popular car to buy by any stretch. The market is going to reflect that. Some will be fooled because "it's a Honda". But one of the worse (if not "the worse") vehicle for ride, noise, and stability.
 
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It blue books between 2970-5359 which is a big swing but regardless. I have it listed at 5650 and I get people telling me that it's priced way above blue book.
It's an 11 year old economy brand sedan, so, yeah, it's a little overpriced.

But that's the beauty of online advertising, start high then work your way down. The fact that people are messaging you means you're probably somewhat close.
 

ram_man

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It's an 11 year old economy brand sedan, so, yeah, it's a little overpriced.

But that's the beauty of online advertising, start high then work your way down. The fact that people are messaging you means you're probably somewhat close.
It's kinda crazy that a similar ford focus would sell for more though. Theyre on par quality and feel wise. Just a little surprising.
 
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