Fuel prices and vehicle depreciation

[phyler]

So, I have a question, do NADA and KBB take fuel prices and maintenance costs into a vehicle's value? The reason I ask, is with diesel at $4 a gallon, I could see this impacting prices on both new and used trucks.

As background, I have a 2004 Dodge 2500 that we bought new in November of 2003. When we bought it, we had the grand idea of purchasing a trailer to tow the Bronco and my motorcycles with. We lived in a condo and were true DINK's. Well, life changed (we bought a house and just had a kid) and we never bought the trailer (although I now have a garage to work on my junk in) and we have no need for the truck. Granted, we can afford the truck and the fuel, we're in good shape, it is just a luxury item at this point. I started looking online at KBB and NADA and I have a hard time believing that I could get either the private party or the trade-in value that they list. The truck is in excellent condition, completely stock and has towed a trailer once.

What do you think? How much off the suggested values do you think are more realistic? I'm just going through the motions to a certain extent cause I love this truck, it is so comfy and I love the ride and the power. Like I said, I can afford it fairly easily and I'm right-side up on the loan. I guess this time of year, I just start thinking of the two-wheel variety of transportation. :)

Thanks.

[DADA_JEEP]

i think car prices are going to do just about the same as realestate in this economy, they may say it is worth a certain ammount, but finding someone to pay that ammount will be the kicker.

[CLYDE]

prices are going to drop like a rock soon, as more and more people unload the big pigs, and go for econoboxes..

[ScaldedDog]

As a neighbor of mine once told me when I was trying to sell a car, "It may be worth it, but you ain't gittin' it". :D

Mark

[DaJudge]

Not sure about KBB, but NADA prices are supposed to reflect actual sales prices, not someone's opinion of a vehicles 'value' or "suggested values". Lower prices for 'gas guzzlers' just reflect public reaction to higher prices at the pump, desire for better mpg, and general economic uncertainty.

[ChiliPepper / Kenny]

NADA, and KBB, don't mean much as far as vehicle pricing goes anymore. With more and more people buying from auctions, you want to see what they are going for at auction. Check Manheim. Best bet at getting true value on trade in. As far as private value, its worth what someone will pay for it. Check and see what they are going for in the paper in private sale and at dealerships. You should fall somewhere in between depending on the condition,options, milage, etc of your vehicle.

[potter]

Yeah definitely shop around big time. Look through every classified ad, online (autotrader / ebay etc), dealerships. Wherever just as you were trying to purchase the same thing you have. Should give you a good idea of what that particular vehicle is going for.

[phyler]

Thanks for tips about NADA and KBB, I just wasn't sure how they determined their values. It was strange to me to see that NADA was like $3k higher than KBB too for each (trade-in and private party).

I totally understand the "it's worth what someone will pay for it" thought, sorta why I asked cause as much as I love my truck, I don't believe that I could sell it for what KBB or NADA are showing.

I have kept an eye out on private party pricing in the paper and it just seems like I never see trucks similar enough to feel like it was a decent comparison.

In the end, I was just curious were these estimates come from and what they took into account. I really don't care what my truck is worth cause ultimately, if I do ever sell it, it will be a sad day for me, unless I'm turning around getting something just as nice.

[Colo.TJ]

I generally use www.edmunds.com to get a value of a vehicle. It falls between NADA and KBB and seems to be fairly accurate. Then compare that value w/ local values i.e. classifieds, auto trader, and craigslist.

[denverd0n]

The thing to remember is that all of these pricing guides are always, inherently, behind the curve. That is, the lead-time for collecting prices and publishing the guides pretty much guarantees that they are already at least somewhat out of date by the time they get out.

As DaJudge said, at least for NADA, the prices reflect what people are really paying. But gas prices go up and down way faster than NADA can possibly keep up, and every change in gas prices nowadays causes a small effect on the value of a car, depending on its gas mileage.

[JR4X]

It is my opinion that high diesel prices will kill truck sales for me. Then I will snatch one up for cheap when the market is flooded with oil burners. It is over 4 bucks a gallon for diesel here.

There is a beautifull 97 F-250 at a dealership in orchard mesa. I stopped to look at it with a price tag on the windshield of $5995. The guy came out and told me he would take $5500 for it "lets go fill out a credit app". It books for much more than that but no one is going to buy a 460 CID truck right now so he is stuck with it. I am waiting to find a good 24v cummins truck at a steal from some one who is ready to buy a honda. I know lots of soccer moms still drive 3/4-one ton trucks to the grocery store. My .02

[Mack]

:rolleyes:

Sorry folks, the market isn't going to 'drop out the bottom' on trucks and large SUV's. People will find a way to keep fueling them from somewhere else in their budget. The demand for these vehicles will always be there- Soccer mom with three kids and their gear and a dog isn't going to make a switch from a Chevy Tahoe to a Toyota Camry, and likewise Paul Bunyan with his construction equipment and materials isn't going to switch from his 3/4 ton pickup to a Honda Accord. They'll figure out a way to make it work with the money they have.

[CLYDE]

:rolleyes:

Sorry folks, the market isn't going to 'drop out the bottom' on trucks and large SUV's. People will find a way to keep fueling them from somewhere else in their budget. The demand for these vehicles will always be there- Soccer mom with three kids and their gear and a dog isn't going to make a switch from a Chevy Tahoe to a Toyota Camry, and likewise Paul Bunyan with his construction equipment and materials isn't going to switch from his 3/4 ton pickup to a Honda Accord. They'll figure out a way to make it work with the money they have.
yeah but those that buy something new, are going to trade down, IF they dont have any practical use for that powersmoke, or cummins. Theres a ton of them out there that people bought, Just because they could, not because they needed a work truck. tahoes and burbans will start getting traded in for minivan, people movers. Shit look at how many of the people that have been foreclosed on, were the same ones with these type of vehicles??? people trying to live beyond their means, and keep up with the jonses, and now they are damned near homeless.. I still think the used market is going to drop a bunch.. Look at Harley prices right now? they are down for the first time in 25 years. Funny, the last thing I would sell, is something that gets 40 miles to the gallon right now:shrug:

[Yota]

Not sure about KBB, but NADA prices are supposed to reflect actual sales prices, not someone's opinion of a vehicles 'value' or "suggested values". Lower prices for 'gas guzzlers' just reflect public reaction to higher prices at the pump, desire for better mpg, and general economic uncertainty.


.

Your vehicle is worth whatever (low or high) someone is willing to pay for it.

It is the buyer's job to consider all factors that affect him/her. It would not be appropriate for KBB to speculate on what fuel/maintenance prices might do in the future. That would be highly speculative and would make their valuations almost meaningless.

So KBB tries to give you an estimate (that's all it is) of what your vehicle might be worth in today's markets (retail, FSBO, trade-in, etc) in your area.

The KBB value tends to be the starting point for selling vehicles. If they can get more, great. If they can't get that much, too bad. The market decides what the vehicle is worth and the seller decides if that price is acceptable.

[Colin]

prices are going to drop like a rock soon, as more and more people unload the big pigs, and go for econoboxes..

yessiree

My dad bought his truck in the peak of gas prices last summer from a guy looking to buy a hybrid. He got $9k off original.