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Entries in Trade In (3)

Thursday
Jun162016

Used Vehicle Values

We were just reading an informative article, that Canadians lack information when it come to knowing what the value of their vehicle. Its a bit of a wow moment. Since most folks we talk to all mention that CMS (Citizen Main Street) is well informed on to the value of their vehicle.

Just in case you missed some entries in our "Tip of the Day"

What is My Car Worth this was the first entry in our tip of the day series. We provided a concise process to arrive at what your car is worth.

You Have a Trade In we described the trade in process.

Do You Have Equity or Cash or Both as you know with longer finance terms having equity in a vehicle can be challenging.

Is CMS really so far behind the 8 ball. We don't think so. Perhaps its a simple point that if you are not considering, buying, trading, selling a vehicle. Who cares what they are worth, or selling for.

We are all under time constraints and there are surely better things to do than exploring vehicle values that change weekly just for the fun of it.

When you do need information, you scramble to remember where to find it, the URL, the search takes  you somewhere else, and so on.

If you are a regular reader of our publication you are not in the dark, and perhaps you should tell your friends that Strada will keep them informed.

Here is Brian Murphy of Canadian Black Book describing the results of the survey.

 

Tuesday
Jan192016

You Have A Trade In...

Who doesn't have a trade in?


How many trade ins have negative equity?

The classic sell it yourself, to get more money.

The ongoing conversations around trade ins are antiquated, stale, and a different version of the same old.

In 2016 empowered by technology do you want to be part of the "haves" with the same old stories, perspectives. Or do you want to be part of the "have mores" by being innovative and disruptive?

The "Haves"

I'll get low balled by the dealer, who is an expert negotiator they earn a living negotiating. I'll try to sell it myself, how challenging can it be to sell a 15 to 20K vehicle out of my driveway? Dealers do it every day.

We could keep on going, surely by now you know the story of the "haves".

The "Have Mores"

I need to maximise the value of my vehicle. I need to sell my vehicle to a dealer. I know what my vehicle is worth. I will clean my vehicle or have it detailed...we all buy with our eyes. I will have my own Carproof report for my vehicle. If my vehicle is financed or leased I will know my payout. I will know if I am in a positive or negative equity position.

Sell it yourself from your driveway

If its a 1K to 5K vehicle its somewhat easier, if its a 15K to 20K vehicle its dramatically more challenging to sell it from your driveway, while providing financial services to fund the sale.

I want the most money for my trade in

Everybody wants the most money, in a wishing and hoping way. You did your due diligence, your vehicle is clean inside and out, you have a Carproof to support the "provenance" of your vehicle. You know the pay out if its applicable. In your mind you have a "value point" for your vehicle that will trigger a decision.

You have a story line to describe why your vehicle is unique, why its worth more money.

The dealer is a magician with trade ins

Remember the dealer needs to take a trade in to close a deal. Especially around the end of the month there is heightened pressure on the dealer, and sales consultants to close additional deals. Does the vehicle you are trading present a retail profit opportunity to the dealer? Be aware that his software already told him if your vehicle today is a retail opportunity, or a wholesale unit.

The dealer is not a magician, he is as vulnerable as you are with trade ins.

 

 

 

Tuesday
Jan052016

What Is My Car Worth? 

 

The enduring question "What is my car or truck or utility vehicle worth?"

At a time when the "consumer" is fully empowered with incredible amounts of information, the question still arises.

Whatever your vehicle, it has a value, and wether trading it in, or selling it yourself. You need to be in a position to know its value prior to selling your vehicle...yes SELL.

Points to consider.

Would you buy your own vehicle?

How interested would you be in buying your own vehicle? Very interested or not so much? How interested would an individual off the street be?

What does your vehicle need?

A good detailing...they all do. Tires, dings, scratches, tear in a bumper cover, a dent, the brake pedal is low are a few examples. Establish a reasonable list of what you would do to your vehicle if you bought it yourself. As for the cost, its easy to arrive at an estimate, being aware that labor rates are at least $100 per hour.

Accident?

Has your vehicle been accidented? Its a good idea to generate your own Carproof report for your vehicle. Keep in mind that any accident appearing on a Carproof is a blemish on the "provenance" of your vehicle. Its an additional variable that must be declared and explained to a propective buyer.

Accident - Frame Damage?

All modern vehicles have "crush zones" to keep passengers safe, substantial dammage on any vehicle will make its way to the crush zones and frame damage. "It was a $10,000 repair but no frame dammage" is the common snippet.

Kilometers Travelled

The rule of thumb is 20,000 kilometers per year. Higher will decrease the value, lower will enhance the value. In some cases higher will make the vehicle unappealing, even with an adjusted price.

Competition

Technology has increased the level of competition, and choice. You have what is touted as a popular model by the automotive media, its only 3 years old. Be assured there are a ton of similar vehicles already in the market competing with yours.

Market Price

Competition generates "market pricing" which tends to be on the lower end of the scale to attract a prospective buyer. Especially for models with good availability in the market.

Time

How long should it take to sell the vehicle? The sooner the better, less than 30 days.

What is the value?

Go to Canadian Black Book to have a wholesale/trade in value as well as a retail value. Do keep in mind that the Black Book has never purchased a vehicle. Vehicles are transacted in the rough and average columns. Go to Auto Trader for your area to have an idea of asking prices, which are not actual selling prices. Yes...you can Google the year, make and model of your vehicle too.

Its complicated?

Its easy, requires minimum time. As an informed / empowered consumer, be aware that most dealers in 2016 use powerful, sophisticated software to access a myriad of "used vehicle data" to empower their decisions and selling process.

By inputting the VIN of your vehicle, the dealer will instantly know the average market price, the competition in the market, how the vehicle is selling, and numerous additional data points.

How does it work?

From the Black Book you find a trade in value of 15,000  and you conclude that the retail market price is 17,995. From Auto Trader you notice that the retail market price is closer to 17,495 and there are a good number of similar, popular models like yours in the market.

You know that your vehicle needs a brake job, tires are 60% worn, probably needs an oil change, the air filter is tired, as well as the cabin filter. If you would buy your own vehicle you would like to see new pads all around, perhaps even new discs, new tires, and an oil change. Agreed the vehicle will pass safety with hardly any material left on the pads, discs that pulsate, almost worn out tires.

Lets say that you would need to invest $1,500 in reconditioning.

Trade In / Wholesale Value (not always the same).......15,000.

Reconditioning .........................................................(1,500.)

Net Value Wholesale..................................................13,500.