January 20, 2006

Hi Tony

I just found your website and found it very interesting! Thank You for having a place to come to for answers!

My question is on pricing, and I need a answer ASAP, because I want to trade this week if possible.

Here is our situation:
I still don't know how low the car dealer will go. They act like they are there at the lowest price now. And I'd like to make sure they are before I move forward, and with your help I hope I can accomplish that.

My question is on trades; the car dealerships in my area seem to go with the Kelly Blue Book, while the NADA book seems to place vehicles higher in price for trades. What makes these two so different?

One car dealership told us that NADA does Retail and doesn't show Wholesale.

Hope you can help us out with this . . .

Thanks!

Carol

Answer:

Hi Carol,

First of all you should shop at several different dealerships and compare prices. Play them against each other. This is the only way you will get the lowest price. Tell each dealer that the other is willing to sell to you for less. Walk out of each dealer without buying, make sure you leave your phone number, and they will burn up the phone lines offering you lower prices.

As far as the trade goes the dealer is only going to give you wholesale value for your car. No matter what they tell you or how they make it look on paper. To find out what your trade is really worth to a car dealer go to several different dealers and tell them you want to sell your car. Find out what they will buy it from you for. This will give you a pretty good idea of the wholesale value.

As far as Blue Book and NADA goes forget about them. When it comes to wholesale values they are both high. The only book that lists true wholesale values is Black Book, and then only in the dealer's edition. This is the only realistic source of true trade-in values I've ever seen. You're not going to find the dealer version available to the public though, so this is why you have to ask several dealers what they will buy your car for.

That is certainly time consuming and a pain to do. If you don't want to go through that then you'll simply have to take your chances.

All my very best . . .

Tony Iorio