You did not answer the question. In point of fact, there are four values that are referenced in versions of the KBB. Which value of the KBB were you referring to above when you indicated that trade offers would equate 50% of Blue Book. You did not answer that question because this simply does not happen.
You may also know that used cars actually sell at widely divergent values from the KBB values. For example, it is widely known that Boxsters are selling far below Private Party Values from the KBB. If you don't believe me, simply go on Auto Trader.com and see what the private sellers are willing to sell their Boxsters for.
So, what values are you referring to?
In point of fact, when I look at establishing a value for trade, I look at auction values. Why? Because I can always go to the auction and buy a Boxster at that price, every week. Why would I pay you more for your trade, UNLESS, I have jacked up the price of the car I am selling you?
Insurance companies practices vary. Most will try to pay lower than retail value if you will let them get away with that. Interestingly, most folks don't know there is some wiggle room in the values here too!
Lastly, his Porsche is worth what he can sell it for, not what you say it is. If he can sell if for $21K it is worth that. If in four months, he sells it for $17K, it is worth that. He has to deal with the uncertainty of funding and timing and valuation. For that uncertainty, he MAY realize much more value than simply trading it in but then again, there are no guarantees. In four months he may be back to trade value. I know this is true as I buy Porsche's from guys everyday who have had the car on the market for months and then need the cash TODAY!
The fact that you feel you can value a car that you have never seen without knowledge of the local market shows that you may not know what you are talking about..
Quote:
|
Originally Posted by Perfectlap
the kelley Blue book!
The arch enemy of car dealerships!
EVery car salesman I ever dealt with immediately rolls his eyes or makes
some pained facial gesture when I point out what www.kbb.com says a car is worth for a trade in, or purchase price.
On one ocassion at a large Toyota dealership the salesman literally lost his temper (yes at the customer) when I pointed out what awful deal they were offering. I tagged along with a friend who didn't speak English as first language and was about to get a very bad deal and even worse financing arrangements (despite having excellent credit). Well needless to say he raised his voice at the wrong guy. I didn't say two words to this guy and went directly to the regional manager and the car was purchased somewhere else.
By the way how do insurance policies determine the worth of a car if it is totaled in a wreck or is stolen and disapears to Russia? Any insurance guys on the forum?
by the way,
your 1995 968 Cab in Excellent condition with 56K miles?
Its worth nearly $19,000 if you sell it yourself
let's see how much the Porsche dealership offers you.
 |