Should NADA be banned?
Stopped in to a dealer the other day looking for an item, and they happen to sell Airstreams. So just for fun, I wandered into one to take a look Ridiculously overpriced, but they are nice. Of cou...
Forum Discussion
rockhillmanor wrote:Maybe this was how it was when cavemen traded for dinosaurs. Today, dealers have online access to current auction results for autos. Mileage, condition, color etc for every vehicle sold across the country. The data is very current and accurate. They can pin the wholesale value of an auto to the tens of dollars. These data bases are updated in real time, no more book of the week, month or quarter.
When every one understands that when you trade in a vehicle. All trade-in vehicles are priced by the dealership as 'wholesale'.
Just really think about it, they have to price/sell it for retail to make any money. They can't actually take your vehicle in at what NADA or any other book says because that is RETAIL price. So how would they make any money on it selling vehicles if they paid retail for it?
No one would ever trade their vehicle in if they KNEW what the wholesale number was on their trade in.
They actually have what is referred to as a wholesale black book. Trade in figures based on what they are bring at the 'local' shoots, I.E. at auction. This book is updated quarterly to reflect auction price fluctuation.
Henceforth the dealerships bring in all trade-ins at 'wholesale' price and play with the profit margin numbers on what you are buying to make it APPEAR they are giving you more money for your trade in.
Just ask the salesman what is the ACTUAL 'wholesale' price they are taking your vehicle in at? After his jaw drops and he tells you, then you know where you are really at between the trade and new.
Been there done that sold cars in my past life. Not proud of it but it paid my bills!
No so on RVs. No where near enough transactions to build a data base. Calculated values based on depreciation schedules is the best they can do. Still, it's better than no basis at all.
As for how vehicle deals are negotiated. It works. Many businesses have tried to re-invent that wheel and most have failed miserably. The others are holding on by the tips of their fingers without a significant market share. No haggle only seems to work when it is the "other guy" is buying. "You" always want to negotiate a better deal.
