Re: NADA any good?

[Jon Moritz <jmoritz@mail.med.und.nodak.edu>]

Note: this is MY experience only...I'm not a dealer....the dealers on this
list feel free to refute this...
My experience with NADA values as follows:
The dealer 'bases' his prices on NADA, but actually pays far far less for a
vehicle.  On trade-in, he will never give NADA unless he is real desperate.
 The most banks in this area will only loan 80% of NADA.  There are a few
banks that give dealers a $100 kick-back and will therefore loan you
whatever you need at a higher interest rate, but only through that dealer.
Most dealers want to make at least 6% on a deal after all factors are
considered (trades, add-ons, fixes, etc.).

In many cases the actual value of a car (to a dealer) is $1000-$6000 LESS
than NADA.  Please forgive the use of non-Audi example...I recently went
through this little exercise:  a '95 subaru legacy wagon brighton in
perfect condition NADA 14000, trade-in value 9000-11000, dealer to dealer
buy 8500, Sell to me "below NADA" or "sacrifice" at 12500-13500.  My Audi,
a '92 100 non-quattro booked for $9450.  I paid a little more for it for
reasons that I won't go into here. Watch out for the "blue book" versus the
NADA yellow book.  The prices are vastly different. Watch for equipment and
mileage adds/deductions, too.  I couldn't sell the Subaru for NADA value.
In addition it depends on the part of the country you live in.... Up here
in North Dakota cars are almost literally a 'dime-a-dozen' and can be
purchased very cheap below NADA. 4x4's (trucks, minivans, SUVs) on the
otherhand go for PREMIUM prices (it snows ALOT, go figure).  

My Audi is worth the NADA price (IMHO), but only very few people will be
interested in it. Even a quattro in this area will be slow to sell to
someone living up here due to the service/parts question (unless there is
an Audi fanatic around).  Being a displaced Texan (and a former Aggie), I
know that Austinites can recognize a luxury car (except t-sips, o.b. tu
slam), and may ask for more on selling or pay more for an Audi in good
condition.

Basically NADA sucks...... don't rely on it except for a starting place.
The value of a vehicle is whatever you can pay for it or whatever you can
get for it.
I generally use the local newspaper classifieds and dealer ads to find out
how vehicles in a class are selling.
Good luck!

>Date: Wed, 15 Apr 1998 10:29:12 -0500
>From: ejfluhr@austin.ibm.com (Fluhr)
>Subject: NADA any good?
>
>How accurate are the used car "values" in the NADA guides?
>
>They value an '84-'85 ur-quattro in "good" condition at $7425.  Yea, right,
>good luck finding one in good condition for that price.  And, of course,
>the credit union will only loan up to the NADA value for used cars.
><grumble, grumble>
>
>Later,
>Eric
>'85 Coupe GT
>- ---
>Eric J. Fluhr                                Email:  ejfluhr@austin.ibm.com
>630FP Logic/Circuit Design                   Phone:  (512) 838-7589
>IBM Server Group                             Austin, TX
>

Jon Moritz
University of North Dakota - School of Medicine
'92 Audi 100 83k mi
other 'toys' - '94 Ford F-150 4x4 loaded; '56 Dodge pickup; Farmall 706
tractor
In the Audi wasteland of NW Minn/ NE Nodak