Happy Holidays Folks,
Well I’ve come back to the forums for some advice and wisdom on Used Car Pricing. I have been doing some research and have tried to look at this logically, which makes me think I’m going about it the wrong way. I am trying to determine what is the most likely price a dealer is willing to “pay” for a used car trade in. The specific car in question is a 2007 Honda Civic LX with 85,000 miles on it. I am not trading this car in but am interested in purchasing it.
My philosophy is that car dealers, like anyone one else, need to make a fair profit at what they do. I’m not out to beat anyone down to try and get a “steal”, I just want a fair deal. If it’s fair for both parties I think the resolution should be relatively quick and painless…that’s just good business for everyone. In my case the dealer is asking $12,000 for the above car.
So I go to KBB and research this car as a trade in. I plug in the optimum scenario for the car - all the options, excellent conditions, and so on. this represents the absolute top value this car would be considered at for trade-in. Of course this is KBB’s opinion but I am assuming that have some stats to back those numbers up. The KBB trade in value comes in at $8301.00 max.
To that value I’ll throw in an extra $1000.00 for detailing, minor repairs, and associated costs. Then I figure add $1000.00 on top of that for profit and that brings me to $10,300 that I think is a fair price to both parties. I’ve never sold cars and everyone I know has “scum” salesman story. I have worked extensively with the public though and I know how they can be. I imagine a good part of the car salesman are the way they are because of how they’ve been treated by this same public. I don’t want to insult them with an unreasonable price and I think my method gets me close to a fair price as any I’ve come across.
If it is fair and they won’t go for it then business is business and I look elsewhere. However I it does me little good if my pricing scheme is inaccurate and insulting. I’m interest to hear your advice and wisdom on the subject.
Thanks in Advance,
Old School Ninja