Used car prices and Kelley Blue Book: Why would someone go 40% over KBB value?

[AndrewR]

I'm in the market for a new vehicle since my 1991 Ranger is showing little problems here and there with no end in sight. I keep an eye on Craigslist, and one caught my attention tonight. I immediately wondered how a six year old Ranger, which aren't that expensive to begin with, could go for $14,000 so I looked up KBB.

Even giving some higher end features, that model Super Cab doesn't even break $10,000 in Excellent condition! I think you can get a NEW Ranger for $14000. Just checked -- 2007 Ranger XL base MSRP is $14,540. With a little haggling, you could do it, though admittedly it's not 4x4 extended cab. 🙂

Do people just hope others don't look? I am amazed sometimes. I think someone is just hosed on their outstanding loan balance versus the worth of the vehicle.

 

[Toastedlightly]

people overvalue the 4x4.

 

[AgaBoogaBoo]

Originally posted by: AndrewR
Do people just hope others don't look? I am amazed sometimes. I think someone is just hosed on their outstanding loan balance versus the worth of the vehicle.

Ding ding ding! That's probably it 😛

 

[chuckywang]

KBB really doesn't determine prices...the market does.

Well kept e30 and e36 M3s go for way more than KBB. If I found one for the KBB excellent value, I would immediately buy it and then sell it for a profit.

 

[AndrewR]

Originally posted by: Toastedlightly
people overvalue the 4x4.

Which has higher maintenance costs! It is nice in the snow with our Jeep though.

 

[OutHouse]

email the guy and ask him.

"hey dude, im interested in your truck, can you tell me whats in it to be asking 14K for it"?

 

[AndrewR]

Originally posted by: chuckywang
KBB really doesn't determine prices...the market does.

Well kept e36 and e46 M3s go for way more than KBB. If I found one for the KBB excellent value, I would immediately buy it and then sell it for a profit.

I can see that, but the Ranger is not a vehicle which keeps its value overly much from what I've seen. There are few American cars which do (the Corvette being one obvious exception!).

 

[thedarkwolf]

Well maybe he has done a lot of work to it like tuning it into a mean off roading machine or something. If not he could just be stupid.

 

[Colt45]

asking 14k and getting 14k for it are two entirely different things.

 

[AndrewR]

Originally posted by: thedarkwolf
Well maybe he has done a lot of work to it like tuning it into a mean off roading machine or something. If not he could just be stupid.

I would think he'd put it in the ad if he did. There was on guy who had a Dodge Ram that he'd tricked out, and it was a beautiful truck. He was asking quite a bit over the KBB, but it was worth it from what I saw. Pretty sure this guy is just stupid. I guess stupidity just baffles me sometimes!

 

[fbrdphreak]

Originally posted by: Colt45
asking 14k and getting 14k for it are two entirely different things.

Yep
I'd say e-mail him and say you're interested, but that $14K is waaaay above KBB. Also look at other similar models in your area (AutoTrader.com) and show him prices of comparable models.

When we were shopping for my gf's 3rd-gen Camaro project, we came across what should've been a nice car and the guy was asking $4600 for a 92 RS police package 350 V8 auto. Were it in the pristine condition his pics showed, it would've been worth near that. Instead it needed a lot of mechanical/electrical/body work. Luckily we know a great GM mechanic & a great body guy, so we could do the work cheap and got the car from him for $2200. 🙂

 

[olds]

He's probably upside down on it.

 

[JulesMaximus]

Originally posted by: chuckywang
KBB really doesn't determine prices...the market does.

Well kept e30 and e36 M3s go for way more than KBB. If I found one for the KBB excellent value, I would immediately buy it and then sell it for a profit.

This is a compact Ford truck though, not an M3.

I'm guessing he's upside down in it and needs to sell. He'll never get that much for it.

 

[jlbenedict]

If you finance a vehicle, I'd say with 95% of vehicles sold, you'll be upside down on the vehicle the moment you drive it off the lot 🙂

 

[JulesMaximus]

Originally posted by: AndrewR

Originally posted by: thedarkwolf
Well maybe he has done a lot of work to it like tuning it into a mean off roading machine or something. If not he could just be stupid.

I would think he'd put it in the ad if he did. There was on guy who had a Dodge Ram that he'd tricked out, and it was a beautiful truck. He was asking quite a bit over the KBB, but it was worth it from what I saw. Pretty sure this guy is just stupid. I guess stupidity just baffles me sometimes!

Aftermarket add-ons are never worth even a fraction of what they cost.