KBB values? Do people actually get them?

[Homerboy]

I'm looking at a 2007 Toyota Sienna MV with ~89K miles. It is in PERFECT shape and I know it was babied for its life thus far as I know the sellers quite well. Leather, power everything or less. Alloy wheels etc etc.

Trick is, the sellers are asking KBB value of $15K for the car. And are pretty determined to get it. Do people consistently get the KBB value on cars? Or are they just dreaming?

 

[Throckmorton]

IMO KBB values are ridiculously high. What kind of moron would buy a 5 year old car for 3/4 the price of a new vehicle?

 

[Ferzerp]

I'm getting the KBB trade-in value on my car if I chose to trade it in here in a few weeks, so yes. You can.

 

[spaceman]

depends on veHicle
u know u get something in mid 80s say a truck,kbb says its worth like 1500 if mint
but u aint going to find that truck for sale for kbb either
so it can go both ways

 

[jlee]

IMO KBB values are ridiculously high. What kind of moron would buy a 5 year old car for 3/4 the price of a new vehicle?

You can get a new Sienna for $20k?

 

[DeviousTrap]

I take it you're looking at this car from a private party, not a dealer, correct?

KBB is usually very close on trade-in values to what the market price is on the wholesale end. Retail is really anybody's guess. I checked Manheim for you (dealer's auctions) and use a 2007 FWD XLE as an example. In the last week 13 cars were sold. The average car had 82,142 miles and went for $12,508. Thats what the dealer should realistically be able to offer on trade, but that's not the price that they'll ask for the car. Keep in mind, they might easily offer more than that if they're making money on the other end of the deal (on the new car).

Does that mean that the car you're looking at is worth 12.5? Not really, that's a baseline you can use in your head. There is a very justifiable premium if you know the history of the car and it's in above average condition. This is also the price at which dealers would sell the car to each other, you should not be able to expect to purchase a car for dealer cost. Yes, this may be a negotiating tactic, but please be realistic (and don't ever tell a dealer you know the exact Manheim value of the car, it will not help your case!)

 

[DeviousTrap]

You can get a new Sienna for $20k?

No, you'll be closer to 25k for a new one.

That being said used car prices are definitely significantly inflated right now, compared to any time in recent history. 2-6 year old cars really aren't depreciating at anywhere near the expected rate. As an example, the typical lease residual price should be close to the value of the used car. Residual on most cars is somewhere +/- 55% over 3 years. So a 30k Sienna should be worth 16.5k 3 years down the line. If the asking price of 3 year old car is higher than say 60% of the car's new price, then there is arguably an imbalance in the market.

If there was ever a time to justify the purchase of a new car, it's now. But obviously that may not be possible for everyone.

 

[Ferzerp]

Actually, used car prices have historically been massively deflated due to oversupply.

Right now, due to the activities of the last 5 years or so, we're no longer in a huge oversupply situation and the price of used cars is more in line with what they should be.

Don't worry, we're back to injecting far more vehicles in to the fleet than we're removing, so the used prices will bottom out again sometime in the next 5-6 years.

 

[Homerboy]

I take it you're looking at this car from a private party, not a dealer, correct?

KBB is usually very close on trade-in values to what the market price is on the wholesale end. Retail is really anybody's guess. I checked Manheim for you (dealer's auctions) and use a 2007 FWD XLE as an example. In the last week 13 cars were sold. The average car had 82,142 miles and went for $12,508. Thats what the dealer should realistically be able to offer on trade, but that's not the price that they'll ask for the car. Keep in mind, they might easily offer more than that if they're making money on the other end of the deal (on the new car).

Does that mean that the car you're looking at is worth 12.5? Not really, that's a baseline you can use in your head. There is a very justifiable premium if you know the history of the car and it's in above average condition. This is also the price at which dealers would sell the car to each other, you should not be able to expect to purchase a car for dealer cost. Yes, this may be a negotiating tactic, but please be realistic (and don't ever tell a dealer you know the exact Manheim value of the car, it will not help your case!)

Great info.

It is from a private sale. They just bought a brand new car for the wife and decided not to do trade in on the van as they realized that either I would be interested in it (which I am) and/or they could easily sell it if I balked (no hard feelings).

I am pretty confident that the van in question should have been meticulously maintained and cared for as this family is well off financially and particular about taking care of such things.

When it comes down to it, there may be a light premium added in as well as they are willing to "seller finance" it for me if wanted/needed.

Long story short, it sounds like for ~$15K for such a used minivan, its not out of the ballpark of consideration.

 

[jlee]

No, you'll be closer to 25k for a new one.

That being said used car prices are definitely significantly inflated right now, compared to any time in recent history. 2-6 year old cars really aren't depreciating at anywhere near the expected rate. As an example, the typical lease residual price should be close to the value of the used car. Residual on most cars is somewhere +/- 55% over 3 years. So a 30k Sienna should be worth 16.5k 3 years down the line. If the asking price of 3 year old car is higher than say 60% of the car's new price, then there is arguably an imbalance in the market.

If there was ever a time to justify the purchase of a new car, it's now. But obviously that may not be possible for everyone.

I just looked it up. $26,435 MSRP for a base model. $39,955 for a Limited.

OP - what trim level is it?

 

[railer]

I use KBB, NADA, etc. as very rough pricing guides. Their stated values are always much much higher than the actual private party sale prices, at least around my neck of the woods.

We had a 2007 Sienna XLE go a couple weeks ago at our local auction for just under 10k. It had approx 100k on it. It was listed at the dealer for 16k.

15k for a 2007 Sienna sounds a lot like a dealer retail price to me. Check your local cars.com, craigslist, autotrader, etc to see what kind of market there is

 

[Homerboy]

[SIZE=-1][FONT=&quot]EX-L Minivan 4D | Mileage: 88,068 [/FONT][/SIZE]

 

[DeviousTrap]

[SIZE=-1][FONT=&quot]EX-L Minivan 4D | Mileage: 88,068 [/FONT][/SIZE]

You sure you're looking at a Sienna?

EX-L is a honda trim line

 

[Homerboy]

You sure you're looking at a Sienna?

EX-L is a honda trim line

Hen. I'm just an idiot. Its a honda. Ive been typing Toyota here over and over. Sorry!

 

[Zivic]

Hen. I'm just an idiot. Its a honda. Ive been typing Toyota here over and over. Sorry!

drive over to mn... I'll sell you my 09 odyssey for 1500 under KBB private party.

09 ex-l with navi, rear enternainment, 6 disc changer, fog lamps, new michelin defenders. ~40k miles. did trans service @ 36k


whatever you do, check the trans service on that van.. If it hasn't had likely 2 services over that 89k, that would be a huge red flag for me

 

[hans007]

No, you'll be closer to 25k for a new one.

That being said used car prices are definitely significantly inflated right now, compared to any time in recent history. 2-6 year old cars really aren't depreciating at anywhere near the expected rate. As an example, the typical lease residual price should be close to the value of the used car. Residual on most cars is somewhere +/- 55% over 3 years. So a 30k Sienna should be worth 16.5k 3 years down the line. If the asking price of 3 year old car is higher than say 60% of the car's new price, then there is arguably an imbalance in the market.

If there was ever a time to justify the purchase of a new car, it's now. But obviously that may not be possible for everyone.

exactly and i'm absolutely going to love it. when i bought my current car (an A4) the lease residual said 51% on a quattro one like i got which was pretty horrible. its like 58% now if you lease one. so i'm expecting to get at least halfway decent value on selling it as its still fairly current (doesnt look much different than a brand new one).

 

[mvbighead]

Generally speaking, you can't just hit KBB and see what it should go for. Checkout truecar, checkout autotrader.com, checkout craigslist.com.

Try to find similar vehicles and see what is being asked. If the vehicle is as perfect as you say it is, and the price fits, jump on it.

To me, when I go buying, I compare prices and then haggle based on anything that is wrong with the vehicle. IE - They want $15000 and the tires are shot, I'll give you $14500. Loose steering? another $500 deduction. Etc. etc. Tell them why you think you should pay less than what others are asking. But if it's perfect, and the price is already in the right ballpark, you're going to have a hard time finding deductions.

 

[carfreak]

When it comes to the value of a car you could talk all day about which guide is good or not.redactedwill actually tell you how much cars sells for at auction. This info should help you get a better deal on a car when buying from a dealer.

 

[LTC8K6]

When it comes to the value of a car you could talk all day about which guide is good or not. ......................... will actually tell you how much cars sells for at auction. This info should help you get a better deal on a car when buying from a dealer.

Go away!

 

[Insomniator]

So how does trade in work exactly? Why would a dealer offer in trade only what the car is actually worth? Don't they have to make money on it, or is that just to get you to buy the new car which makes them money? I would have guessed dealers just offer ~75% of what the car is actually worth because in their minds they are doing you a favor by taking it off your hands.

If a dealer would give me KBB trade in value on my current car I'd probably take it.

 

[NutBucket]

? That's why the trade in value is lower than the retail pricing. There's your margin. But there's no guarantee of anything so while the dealer may be doing you a favor they still have to get rid of the car. The only sure thing they know is what the auction value is. So worst case they send it to auction and shouldn't come out too far behind.

For example, here's my Acadia that I traded in: http://www.ladinsubaru.com/used/GMC/2012-GMC-Acadia-cdb714160a0a00e02c3133f88e983088.htm

At the time, KBB trade in value was $30k. They offered $27k. As you can see, there's no way they could make money paying me $30k for it. For comparison, Carmax offered me $25k. Plus, I traded that car in end of June. There's lots of variables involved.

 

[z1ggy]

I've never paid or traded in a car worth KBB values. Generally both values have been lower than KBB, by a decent amount.

 

[PieIsAwesome]

Lol, Honda civics over here sell for over the KBB value.

 

[JulesMaximus]

A friend of mine just sold a 2005 Mazda 6 (4 cyl with leather, 83k miles)) for $6000. He said the phone rang off the hook and people were offering him his asking price without even seeing the car.

 

[NutBucket]

Clearly he priced it too low