KBB prices vs Real world prices

[medtro]

As long as there are people that line up to pay 20%-30%+ over book value, dealers will continue to over price these trucks.

What your insurance is willing to pay to replace the truck would be the best barometer of its actual value. In your negotiations, ask the dealer to provide you with examples of insurance carriers who would support that asking price-(never going to happen).

Not a 100, but I got more than 2X of KBB value (Private Party Excellent Condition) from my insurance company for my 1997 LX450 recently.

 

[spaber05]

I dont take your post as picking a fight- I think we all understand the there are many perspectives shared here on "value" vs price; these are simply opinions. I respect yours.

There is a line where the emotional overrules the rational with these trucks.

Price: For the buyer, a 100 is worth what the buyer is willing to pay. But from a valuation perspective; what a bank or insurance company is willing to underwrite the value at total loss or replacement should be the reality check for its true "value". The delta between what you own it for and what insurance will pay out comes down to personal choice. Rational kind of goes out the window, and the emotional creeps in. How much loss are you willing to absorb for the "emotional" connection to owning/operating the truck? I'm not saying its a bad thing, but let's be honest about the rationale.

Admittedly, with all the mods on my truck, I'll never recover my outlay in a worst case scenario, but its my hobby truck and I'm having fun building it and very much enjoying the use of it (the emotional overruling the rational). The goal was to build a reliable overlander. My 05 was a no-accident, 1 owner truck, regularly serviced at the same dealer from day 1 until I bought it. Mechanically 7/10 Exterior 6/10, Interior 7/10. It had 160k miles and I paid $13,500. While I felt that price was a little high for this truck, it met the overall criteria for what I had planned for it for build budget and intended use.

I think 150k mile 06/07 models with no accidents and reasonably well documented service history are upper mid to high teens (16-19k) value range based on region. I certainly wouldn't pay over that unless the mileage was well under 100k and it was absolutely flawless.

Well put. I guess I would say that if a KBB valuation of our trucks is slightly flawed, I see no reason for a bank/insurance company's number to be spot on. I guess we could argue the definition of "value" here (weight of what people will pay vs. corporation etc.) but that might be taking it a bit too far.

Personally, I agree 100% in that I'm comfortable spending money on a truck I know I'll never get back because that is part of the fun of ownership...making it your own.

 

[RND1]

KBB is a joke - I would buy all the '06/'07 LC/LX's I could find at their prices! KBB puts my '03 w 130K miles good condition at $9K. And an '06 LX with 90K miles good condition at $14K. I'll take 2 at that price lol.

 

[uzj100]

Agreed. I do my own pricing research by doing a 200 mile radius on autotrader and then taking an average.

 

[abuck99]

Certainly would be worth a consolidated effort to "challenge" KBB and/or other reporting sources to update how they value these particular vehicles based on FMV.

 

[uzj100]

Yes it would. Dealers use auction data for trade in value. I wonder if that data is readily available.

Truecar and cargurus have the great good bad price rankings

Used Toyota Land Cruiser for Sale in Raleigh, NC | 17 Used Land Cruiser Listings in Raleigh | TrueCar

Used Toyota Land Cruiser For Sale - CarGurus

One of the funniest parts are the people that continue to confuse Cruisers and Rovers on pricing and reliability. People are clueless.

 

[scwill]

KBB and NADA are used for newer car purchases. Like if I wanted to get an idea of what new Z71 Chevys are running I would look at KBB. Im a big Old Body Style Chevy guy, when Z71's were new on the scene. You cant use KBB or Nada for pricing these old Z71s if they are low mileage and better than good condition, same thing im finding out about the LC 100 series. Im in the process now of buying a 2003 and I dont feel I get ripped off but I damn sure paid for it. On specialty vehicles like these you better be willing to fork up a little extra, and if you see one you like or is close to fitting the bill dont sit around and think about it, if you do it will get snatched up by someone who knows.

 

[El Cid]

LIke I said, the price you pay on the street is what you negotiate. Not what a book, any book, says.

 

[uzj100]

Dealers love to anchor you on those prices. Do not let that happen. Happens everyday and in many situations. ;<)

Anchoring - Wikipedia

 

[PrahranNYC]

Dealers love to anchor you on those prices. Do not let that happen. Happens everyday and in many situations. ;<)

Anchoring - Wikipedia

So you're saying....low ball If its as nice as they claim id start the offer at 17k

 

[abuck99]

Dealers love to anchor you on those prices. Do not let that happen. Happens everyday and in many situations. ;<)

Anchoring - Wikipedia

Cool- I just learned some new technology today.

 

[uzj100]

Yes. You and seller stick around what is put out there. You have to pay attention and no it is happening.

 

[El Cid]

Haha, i am glad to hear Someren bring up Kahneman.

THE key is to recognize that we are Not rational decision makers. Stick to a budget when you negotiate. If you dont like the Price, walk away...