Quote:
Originally Posted by Miccara
Don’t agree entirely. I’ve had some discussion with the finance industry and Black Book. The price a vehicle sells for at auction is not necessarily the true value of the vehicle. The data I saw shows things like a Chev Z24 selling for $4500 one week, and two weeks later the same vehicle (same options, same trim, similar kilometres) selling for $5200. Black Book’s method is to collect the information over a three week period and benchmark the value of a vehicle over a given timeframe. This more accurately reflects the assets true value.
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I believe that the finance industry does use the black book to determine used values. If the dealer who is actually buying the trade-in did the same. He could have a bunch of over priced used inventory that could sink the dealership in a hurry. Auction is a better indication to the dealer of what the buyer is actually willing to pay.