BMW Luxury Touring Community banner

1 - 12 of 12 Posts

·
Registered
Joined
·
52 Posts
Discussion Starter #1
Does anyone know why these price books often differ so much? In most cases, for the bikes I'm interested in buying or selling, KBB lists an "avg retail" price considerably higher than NADA. It's not always the case, but seems to be more often than not. I certainly have never seen a KBB listing LESS then NADA. The difference for something like an LT of a given year can be ~$1500.

-Ron Aikins
 

·
Registered
Joined
·
61 Posts
nada vs kbb

i think those 2 venues ahould only be used for a guide and not relied on for accuracy. they take into account all the usa and just avg. you still must get a good feel from the person selling and try to gain as much insight into a particular unit you are considering. the prices certainly do vary from machine to machine and we all want to buy low and sell high, but it really doesnt work that way among common folk. it seems only the dealer type people can get away with it.
 

·
Registered
Joined
·
253 Posts
Both guides are used mainly by financial institutions to determine loan values. In the midwest and eastern states, they primarily use the NADA and the West coast and Southwest uses Kelley. Dealers use them as a guide only (if they use them at all).
Niether book has any statistical correlation to actual values, either being attained at the wholesale or retail values posted.
The best advise for values is to research and ask oppinions of those who are in the business of buying and selling. Once you have gathered enough information you can make a quantified decision as to estimated value.
 

·
Registered
Joined
·
396 Posts
Here's a question I can handle.... (from my handle, you could guess)...

KBB gets its money from 2 places.

Biggest one is from insurance companies that purchase values. Insurance companies use those values to set your rates (primarily for cars, not motorcycles). Let's see.... is it in the insurance company's interest to set those values high, or low?

Second is is from auto dealers who purchase window stickers for used cars that show "KBB price" and "our price". Now, if KBB truly reflected the market, it wouldn't be mathematically possible for dealers to consistently price below KBB, would it? KBB prices are normally way high, which enables dealers to show "our price" is a great deal.

NADA values can be closer, but still should not be considered a real market value. NADA's primary data source is monthly surveys that dealers send in. I've been in the business for 34 years, and I've never seen a dealer return a survey yet. The sampling percentage must be very low.

The only guides that are very accurate are auction results, which are not available to the public. Those reflect actual transactions with a willing buyer and seller, and are as recent as yesterday.
 

·
Registered
Joined
·
493 Posts
Not very useful

I didn't find either site very useful in determining used motorcycle value. I'm sure there is a reason why they don't take into account the mileage, but that is a huge variable. I think one of the site's explains why they don't, but it wasn't a memorable explanation. They also don't do anything with condition. Maybe there just isn't enough data? I'm in the middle of a used LT purchase and I think the price I'm paying is fair, but that is all I have to go on.
The few insurance agents I have spoken with will just use the value on the bill of sale to determine coverage amounts. They were no help in helping me gage my purchase price. I don't know what a back would use, but my impression is there is nothing formal on MC's.
 

·
Registered
Joined
·
704 Posts
I just bought my son a 1998 Crown Vic used police car. NADA price was $6500. KBB price was $3000. Your right, not even close. (I ended up paying $3500 and we can play with the siren all we want)
 

·
Registered
Joined
·
343 Posts
A piece of advice my dad gave me that I will pass along to you absolutely free. Those people sell a lot of books, they dont buy or sell a lot of cars/bikes. The most accurate market values can be obtained by watching public auctions, e-bay, craigslist, etc... No matter what any book says the value of a vehicle is what a willing buyer is willing to pay to a willing seller. Steve
 

·
Registered
The Villages, FL
Joined
·
2,601 Posts
A piece of advice my dad gave me that I will pass along to you absolutely free. Those people sell a lot of books, they dont buy or sell a lot of cars/bikes. The most accurate market values can be obtained by watching public auctions, e-bay, craigslist, etc... No matter what any book says the value of a vehicle is what a willing buyer is willing to pay to a willing seller. Steve
My my, answering a ten year ten day old thread. I think you need to refine your search criteria a little better (LOL)!
 

·
Registered
Joined
·
187 Posts
Holy Resurrected thread, Batman! :surprise:
 
1 - 12 of 12 Posts
Top