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Oh yeah, 115% "Market Value" here.... Posted by Mike Lynch [Email]  (#81) [Profile/Gallery]
(more from Mike Lynch) on Sat, 17 Jul 2004 11:04:08
In Reply to: Dealer letters and "market value"..., James D, Sat, 17 Jul 2004 07:47:12 Members do not see ads below this line. - Help Keep This Site Online - Signup |
The local Saturn dealer is promising "115% Kelley Blue Book Market Value". Kelley Blue Book makes a software program called Karpower that for a fee includes a "Market Value" program. Karpower and Market Value are only availible to licensed auto dealers.
You plug in the yr, mk, mdl, mi, adds and stuff and then estimate the reconditioning expense neccessary, tires, brakes, bodywork etc. and it spits out a number. I developed the software for this at Saturn in the late 90's. It involed a check list for every conceivable thing that a car might need like tires = $100 each, low profile or truck tires $150, windshiled $500 (those Saturn windshiled were expensive!) and stuff. Then you added an additional base figure of $350, even for the car that doesn't need a thing and, plug the values into the program, and walla' "market value".
It's very similar to the consumer KBB.com website under trade in value except that the entry is for an actual dollar amount of reconditionin, or "recon" instead of estimating the condition, excellent, good, fair, poor etc. On interesting note is that KBB.com won't give a value for a car in poor condition, whereas market value will.
Dealers who use this system must train their folks to be thourough on the used car evaluation as someone with experience can pick apart any used car. If you disagree with the number, the consultant is able to point at the computer, it's not his opinion after all, but the computer's. Points the blame away from the evaluator and consultant, takes the heat off therefore sustaining the buying process.
When the used car market was strong at Saturn we used to go 110%. With this method the dealer is gonna' win some and lose some, but over all do OK. It's a rational process rather than a number coming from a mystery appraiser.
And market value using the KBB program is way, way, way back of actual wholesale Kelley Blue Book in every case.
You can buy a Kelley Blue Book at a bookstore, but it's not "the" Kelley Blue Book that contains actual wholesale values that car dealers and lenders use for reference. The wholesale values published by KBB in the actual book and the Karpower program are referenced to the original MSRP so the closer a vehicle sells to MSRP new, the more accurate the actual wholesale book number will be in relation to the true wholesale or auction value of the car.
posted by 63.197.222...
, Sat, 17 Jul 2004 11:04:08 <-- Viewing This Message
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