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Topic: Lazy Daze pricing (Read 4 times) previous topic - next topic
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Lazy Daze pricing
Yahoo Message Number: 24223
I sure hope someone out there is knowledgeabe about the reasoning that goes into Kelly Blue Book vs. NADA pricing guides. Further, why do some lenders use one or the other exclusively.  For instance,I own a 91 LD  22 ft.   KBB lists retail w/ 73000mi @ 17,630. NADA lists same @ 13,090.   WOW, truely incredible difference.  How can this be justified?  What if someone expresses buying interest based on advertised pricing using KBB and goes to their bank which chooses to use only NADA. Seems that one could round and round with this issue, all the while not getting a sale.    Thanks so much for ANY insight.
Norm Roberge
Re: Lazy Daze pricing
Reply #1 –
Yahoo Message Number: 24225
Quote
What if someone expresses buying interest based on advertised pricing using KBB and goes to their bank which chooses to use only NADA.
This is exactly what happened to us when we bought our LD.  We really felt like we were paying a fair price, and yet we couldn't get the bank to value it in the same way.  I was able to get a higher price with KBB, but they wouldn't take it. However, our bank let us add as "options" items that are actually standard with LD in order to bring the value up.  We weren't able to get a loan for as much as we wanted, but it worked out okay.  I think if someone really wants to buy, they will find a way.  Don't know why the NADA guide sometimes does not reflect what is really happening in the market.

Laurie
Laurie - 2018 RB
Re: Lazy Daze pricing
Reply #2 –
Yahoo Message Number: 24232
Quote
I sure hope someone out there is knowledgeabe about the reasoning

that goes into Kelly Blue Book vs. NADA pricing guides. Further, why

do some lenders use one or the other exclusively.
Hi Norm,

You didn't mention whether the KBB price was wholesale or retail.
That makes a big difference!  Lenders will tend to loan based on wholesale pricing (the lower price) because it reduces their risk.
KBB has been the biggest source for pricing cars, and as a result, it is the more familiar guide for pricing all moving vehicles.
 
Re: Lazy Daze pricing
Reply #3 –
Yahoo Message Number: 24233
Norm,
 KBB is the most accurate guide for pricing and with a Lazy Daze even it can be lower than the market will pay! I don't know of many financial institutions that use NADA Guides for the valuation of vehicles and what they will lend on a vehicle. NADA Guides are known to be highly inaccurate and are always lower than KBB price. NADA Guides is the National Auto Dealers Association's guide and although dealers may use it banks typically don't! Kelley Blue Book is a financial institution guide and the one most financial institutions use. Some may look at NADA Guides but they don't often trust the info just as most people don't trust used car salesmen.
 Buyers would love to get the NADA price on a Lazy Daze! On many other brands can but the only way they'd get that price on a LD is if it was either in poor shape or the seller didn't know the true value of the unit based on what the market will pay or the KBB price. You can also use the database Barry set up to determine a fair market asking price for you LD.

Mike R.