What’s my vehicle worth? What a question! I wish that after 20 years in the automotive industry there was a simple answer. One would think that with all the information available it would make prices and values easier to obtain. In fact, in many ways, the numbers are more unclear than ever.
The following e-mail conversation regarding retail car prices and trade-in values highlights the confusion and misconceptions about automobile price and value.
This conversation occurred between me/Ted, the dealer, and Rich, the customer…
[Begin Email]
[Ted]
Hi Rich…
Donna loves the 2006 Volvo. It’s a perfect fit!
Again retail value is: $23,800
Here’s what Medway Imports can do:
2006 Volvo S40 Price………….$18,995
2001 Chevy Impala Trade-In Value………..$4,000
Thanks Rich!
Note: the Volvo is still under its factory 4-Year 50,000-mile warranty, free road side assistance…etc.
[Rich]
Hi Ted,
Thanks for the information. The Volvo certainly is a great price, but isn’t my Impala worth $6,000-$7,000?
Kelly Blue Book lists the private party value at approximately $7,995. I know that does not mean it will sell for that amount. However, most of the ads that I have been seeing reflect a range of $7,000 to $9,000.
I would guess that based on the retail prices, the actual sale price would be discounted by $1,000-$1,500. That would mean a reasonable expectation would place the value at $6,000-$7,000.
[Ted]
You’re right Rich…$6,000-$7,000 is certainly a reasonable “retail value” for the Impala, but research shows it’s actually only selling for around $4,000.
Interestingly, based on your math of knocking $1,000-$1,500 off private party bluebook would put the 2006 Volvo at a “reasonable” price of $22,800, as it retails for $23,800 to $24,500 depending on which source you use.
The facts are, however, neither the Impala nor the Volvo will sell for these retail values