Quote:
Originally Posted by My_Name_is_Dan
It has always been my rule that one shouldn't pay no more than NADA pricing on any vehicle. The justification for this is is mainly from an insurance perspective. If you buy a vehicle for $15K and it is worth $12K and you have an accident and the car is a total loss, the insurance company is only going to pay up to NADA retail (maybe). So, you just lost $3K right off the bat.
So, when I start cruising CL for Boxsters, I see asking prices from private owners that are far more than what NADA will support. Am I missing something here?
For Example: a 2009 Boxster with auto and navigation, 11K miles. Owner is asking $35K. NADA is $32K and this is clean retail, which is what a dealer would charge.
Another - a 2005 Boxster, manual, no navigation and 66K miles. Owner is asking $25K. NADA is $19K. Again, clean retail.
Now, lets get back into 986 territory:
2002 Boxster S, manual, 47K miles. Owner is asking $15K. NADA is $16K. Okay, now we've got someone that is sensible about their pricing. Unfortunately the car has been sold....
None of us want to pay clean retail when dealing with a private party, but negotiate something less than that. Unless, the owner can justify cost with receipts and even then I figure those costs are a result of keeping the car properly maintained.
These are just a few examples. The 09 would peak my interest if it was less than $30K, but even at that price point, there is no warranty and there is always the concern something may go wrong with a $30K car.
I fully understand cars are a depreciating asset, so I'm well aware the longer you own it, the less it is worth. I get that. But, I'm having a hard time wrapping my head around the initial cost - where it is higher than book.
So, can someone explain Boxster pricing to me? Would you pay more than book value, and if so, why?
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You are dealing with people's egos, which they usually are not going to negotiate away easily. We often see people asking prices that are so far outside the realm of reality that it becomes laughable. Recently I saw an ad for a "rare" Boxster (the original over used adjective) which was asking more than twice the price for a car that we had just done a PPI on (exact same year, model, more options, fewer miles, immaculately clean). Some people cling to this dream for a while and then quietly drop the price and move on.
If you think asking prices are out of line, when we do a PPI, we provide the prospective buyer with a detailed list of what the car needs and how much we would charge to do the repairs. Sometimes the seller, when confronted with the PPI results, either refuses to drop the price, or only offers a token price reduction that is only a fraction of what it would take to make the car 100%; and the sale falls through.
Some people just need to learn to take the ego and emotion out of the process. In the real world, the market determines the car's worth, not your dreams.