AUTO VALUE GUIDE ..BEFORE WE LOOK UP..CLEARING UP SOME CONFUSION AND SOME DEFINITION OF TERMS! OVERVIEW
THERE ARE MANY DIFFERENT "VALUES" BANDIED ABOUT WHEN TALKING ABOUT A CAR'S VALUE!.What is "Wholesale?".
TRADE IN: also "WHOLESALE","dealer cost","auction".
This figure,hated by consumers everywhere,is the value the auto dealer is supposed to give you on a trade in.
"That's All?!!!"
...is frequently heard after this number is spoken!.
However It cuts two ways!:
this number is also "wholesale",or all the car can be expected to be sold for, wholesale, at either a dealer car auction or directly to another dealer.
Some Guide books [Black Book is one], post spotters at Wholesale Auctions to hand tabulate the strike price and condition of sold vehicles.
Doesn't get much more accurate than that !
It really has nothing to do with the consumer..all you care about is what is the most you can get for your trade in
But in recent years it has become almost as commonly used as "trade in"..and also used in a lot of Automotive marketing copy
This term was at one time not as commonly used when dealing with retail customers ; Wholesale Auto Auctions only date to 1947,and few existed into the 70s.
Some dealers did not necessarily want to advertise they had a quick way to "flip" a trade in..and possibly make a profit on the "back end" [as the trade in profit or loss is known]of your deal.
Other dealers like to let customers know that they have no intention of fixing up your darling car ...and its just another car at a auction once they take it in."That's all there worth"
The idea is to burst the quaint notion that the dealer is going to restore your car back to the way it was when you bought it years ago and he is getting so much "potential" if he just gives you a little more for your trade in.
The fact is; most vehicles traded in have"issues" and the dealer can't easily sell the car for the retail figure to another consumer without investing money in the car.
If the dealer had to fix every car just to get his money back he would either go broke or stop taking trades.
Do some cars sell for more or less than this figure on a wholesale basis?
yes,because pure supply and demand for this specific car take over,since no finance considerations distort the value.
This figure is also favored by many since it more closely approximates a free marketplace value as it is based on actual auctions and not asking prices.
Since demand for the specific make/model set value many vehicles are not even selling for the "book" wholesale(or trade in..the same)...The book is just plain wrong some times..especially on uncommon vehicles
Many American cars are presently in this category.
Some cars bring more at wholesale(Honda Toyota etc.).In recent times the increase of Internet sales of cars has driven the price of cars sold at retail closer to the wholesale (remember "trade in"..the same)figure,so it has taken more significance. Understanding Book Value Terms .
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Appraisal Databases
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FAQs
Welcome
You have come to the right place to find out
what your vehicle is worth in the resale market.
I hope you take the time to use the Information
To learn how to put the real value on your item
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Learning Resources
- About Book Value
- Adjustments
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