Crazy car inflation! Boats Too!

[orezok]

KBB is a dealer generated figure. Almost 100% of the data comes from dealers. So when they report a sale they inflate it, when they report a trade, they deflate it.

Ever wonder why the first words out of the salesman's mouth, well the KBB value is...

It's dealers tool that works to their advantage.

 

[JDgreen227]

I have used KBB online just to get a rough estimate of values, and would never take their figures seriously because the real value of a used vehicle is ONLY what a buyer will pay. For what it may be worth, when I purchased my last used car, a low mileage and very clean and well maintained Saturn L-300, back in June of 2009, the price I paid buying it from a private party is basically the same as todays KBB value. It's still low mileage and in excellent condition, but I am skeptical if I could actually get the book value from a buyer.

 

[newbury]

Unless you are limiting yourself to inexpensive cars I think one of the best EASY indicators of value is to analyze what items SOLD for.
Ebay, some auction sites, some trader magazines report sold versus ASKING prices. These are hard accurate numbers. Everything else is smoke and mirrors.

 

[OKnewguy]

I agree with you newbury. It seems like people misunderstood my post (sorry if it was not clear). I use KBB as a tool, just like I studdy craigslist. I have been watching Craigslist for over a month to figure out what price to put my boat and my Tundra at. I am meeting someone at the bank tomorrow to sell our boat. We have had it for 6 years and done minor stuff but nothing great. It is selling for $8500. We bought it for $6900! When I do put the Tundra up, it is going to be at about $22000 or so (which is what I bought if for). I have put about 15k on it, and have done a few updrades like bedliner and a soft toneu cover. I am expecting to sell for no less then $20,500.
I am just surprised that the market is keeping these prices up so much!
Dave

 

[tractchores]

I have seen this too. The big swing is because material prices went way up in the last few years. As a result something like building a boat costs a lot more, so new prices have gone up hugely. For example I bought a boat that in '09 new was proably 45 - 50k, in 2013 the same boat new is now 75k. The used boats aren't depreciating like they normally would because new is so expensive. I noticed the same thing in cars as well, but it seems to only effect good condition recent models. Some brands (particularly toyota) seem to have had higher prices than others, I think when times are tough people buy the next best thing to new and so the used car market seems to be far better now than it was when times were good.

 

[WilliamBos]

The eesale on the 21' and under with 4 cylinder engines is high up here. Too many can't afgord the bigger boats as they once could.

 

[jinman]

I agree with you newbury. It seems like people misunderstood my post (sorry if it was not clear). I use KBB as a tool, just like I studdy craigslist.

I understand exactly what you mean. You use KBB to see trends, not set actual $$$ values. I think that's also what AlanL meant. The figures show a trend in prices, but salesmen would like you to believe that the prices are accurate. Therein is the "lie."

 

[dirt ditch]

After talking to the owners I have driven over 100 miles to check out CL vehicles listed as excellent condition and priced KBB value. Upon seeing the vehicles firsthand they were a waist of my time. I won't even look at vehicles on CL anymore.

 

[NoTrespassing]

Here in Oklahoma I have noticed some bizarre trends lately. My wife and I have been thinking about selling some stuff (boat, and Tundra) and things are out of Whack! I have bought and sold a number of car and truck and boats over the years. I shop like crazy to get the best deal, but when I sell I always take a hit on depreciation for mileage and of course age. This time it is different. My 08 Tundra according to KBB is worth more then what I bought it for in late 09. My old boat is worth more then what I bought it for in 07. I do not want this to get political but I have never seen anything like this in my 40 years on this planet.
Is this happening all over the country? What are your thoughts.
Thanks, Dave

Dollar Drops for Third Week on Fed Stimulus Outlook; Kiwi Climbs - Bloomberg

"The dollar dropped this week on speculation the Fed won稚 be quick to taper its bond buying under the quantitative-easing stimulus strategy, which tends to devalue the currency. The central bank purchases $85 billion of Treasuries and mortgage debt each month. It has held the benchmark interest-rate target at zero to 0.25 percent since 2008 to support the economy."

A few weeks ago when Bernanke hinted that the fed would slow the bond buying program the markets tanked big time and the dollar went up. I don't know about anyone else but I've been watching prices rise since late 2008 early 2009.

Kevin

PS Cash for clunkers affected the used car market too.

 

[Midniteoyl]

After talking to the owners I have driven over 100 miles to check out CL vehicles listed as excellent condition and priced KBB value. Upon seeing the vehicles firsthand they were a waist of my time. I won't even look at vehicles on CL anymore.

Its not just CL, EVERYBODY claims their car is 'excellent' when even KBB says most of the cars are in the 'fair' value..

Thwe ones I love are the 'Runs perfect, just needs tranny work!'... Um, then it doesnt run