Best way to determine fair market value...
Hello out there! Still narrowing things down. What is the best way to determine fair market value? 2000 Northern Lite $14,900 - Nada states this was 15,085 new and lists current retail at 3900-4...
Forum Discussion
Reddog1 wrote:
I do not put much stock in Nada. I have found the fair market value is determined by what something is selling for locally. If a dealer is buying or accepting your TC on trade, they will expect to pay Nada prices. What they sell you will be substantially higher. The same is true with vehicles of all types.
That sums up my thoughts too, as well as that of the local market where I am - Washington State.
It comes down to "what's the local market" rather than the NADA values.
Here's an example (for trucks)
2006, and 2007 Classic model GM trucks bring a premium, because buyers looking for used GM truck want that model because they are the last "pre DPF" models. Dealers know this, so they can mark them higher, and most customers are willing to pay a premium. The people / data that is used to write NADA and KBB values do not take things like this in to account when writing used vehicle values.
