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 course, a salesman found me, and during the conversation about trade ins and such, I learned some interesting things. Out of curiousity, I asked him what my TT would be worth in trade. He said to go to NADA, enter the year, make and model, then hit the "continue" link. He said not to add any items because the NADA number already takes those things into consideration (which makes me wonder why options are listed in the first place if they mean nothing). The value of my camper, to the dealer as a trade, would be ten to 15 percent below the low retail number. That is how it works.
So a quick internet check (what did we do before smart phones) shows my 1.5 year old TT is only worth 54 percent of new.
Since the NADA number is basically just a random number, taking nothing into consideration such as added options, condition, etc. it means if I wanted to sell my TT, I am simply competing with some apparently random NADA number. And since NADA is the end all to end all, it makes it nearly impossible to realistically price a used TT.
So in theory, my TT, whether clean and neat, or filthy and rotted, should be worth whatever that particular NADA number is. But I am certain a dealer or private buyer would disagree.
When it comes to cars, NADA is a little more realistic, with a choice of "condition" (excellent, fair , poor etc) and other things and seems to provide a more useable number.
In addition, the dealer markup on new TT's allows them to offer (if they want) large discounts on new which further affects the used market.
So all that said, if all this is accurate, it seems NADA shouldn't even be allowed to stick their nose in the RV business without more credibility. They are basically skewing the entire industry (in favor of dealers, of course).
If it's not true, then it was just another salesman trying to figure out a way to make more money with a little deception.
Glad I'm not in the market for a new TT.
Of course, a salesman found me, and during the conversation about trade ins and such, I learned some interesting things. Out of curiousity, I asked him what my TT would be worth in trade. He said to go to NADA, enter the year, make and model, then hit the "continue" link. He said not to add any items because the NADA number already takes those things into consideration (which makes me wonder why options are listed in the first place if they mean nothing). The value of my camper, to the dealer as a trade, would be ten to 15 percent below the low retail number. That is how it works.
So a quick internet check (what did we do before smart phones) shows my 1.5 year old TT is only worth 54 percent of new.
Since the NADA number is basically just a random number, taking nothing into consideration such as added options, condition, etc. it means if I wanted to sell my TT, I am simply competing with some apparently random NADA number. And since NADA is the end all to end all, it makes it nearly impossible to realistically price a used TT.
So in theory, my TT, whether clean and neat, or filthy and rotted, should be worth whatever that particular NADA number is. But I am certain a dealer or private buyer would disagree.
When it comes to cars, NADA is a little more realistic, with a choice of "condition" (excellent, fair , poor etc) and other things and seems to provide a more useable number.
In addition, the dealer markup on new TT's allows them to offer (if they want) large discounts on new which further affects the used market.
So all that said, if all this is accurate, it seems NADA shouldn't even be allowed to stick their nose in the RV business without more credibility. They are basically skewing the entire industry (in favor of dealers, of course).
If it's not true, then it was just another salesman trying to figure out a way to make more money with a little deception.
Glad I'm not in the market for a new TT.
