Quote:
Originally Posted by javadog
No, that's way too high. Dealers used to use loan value, but many go even lower than that now.
JR
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Buying a car "by the book" just doesn't work. NADA, for example, is at least two months behind the market. It is a published book. The production times are long. And, like magazines, December's book comes out in early November. So using December's book is really using September's data. You might think the web version is more up to date, but it mirrors "the book" exactly to maintain the integrity of "the book" --- after all, you're paying to buy/subscribe.
Right now, dealers would LOVE to pay NADA loan value for desireable cars at auction. Fact is, there is still a shortage and there is huge demand. So dealers pay a premium just to have inventory. The margins are pinched as not all of that margin can be passed on to a saavy buying public.
Other cars, however, go for so much less than book value that buying "by the book" gives a false sense of a bargain.
The analogy I use:
Using "the book" to buy a car is like picking up last month's Wall Street Journal, looking up Exxon's stock price, and expecting to sell your stock for that number. Unless you know what it sold for yesterday, or even an hour ago, that data is completely useless.
I'm with Christien. I used Manheim and/or Adesa actual transaction data. Even then, caveat emptor, ymmv..... you have to understand what drives the markets and why the spreads can be so large on apparently (by the data) similar cars.
So to the OP, what EXACT car are you looking for wholesale numbers on? Christien or I can look it up for you.