Used GT500 dealer/ private prices are outrageous

[deathsteed]

This spring I plan on purchasing a used Shelby GT500 so I'm looking on the typical used car sites and forums. I've discovered the average asking price from either dealer or private sales on stock models are well over NADA/ KBB. In addition, those selling modded vehicles are also asking huge money. How are these prices justified and are they actually selling for this kind of money or are the dealerships/ private sitting on these cars waiting for the right uninformed buyer to pay too much?

 

[Coiled03]

What difference does it make? If you don't like the price, don't buy it.

/thread

 

[verbal]

Who says that NADA or KBB are right? Also asking price is not the sale price. Have you tried to negotiate with anyone? What year are you looking at?

 

[BlksvtCobra01]

OP KBB and NADA prices dont mean anything on these cars same goes with 03-04 Cobra's they are a limited production car not like super low volume but not as mass produced like a GT ask if the price is negotiable if not keep looking I myself have seen some decent prices, some deals are out there.

 

[testorossa1989]

Who says that NADA or KBB are right? Also asking price is not the sale price. Have you tried to negotiate with anyone? What year are you looking at?

the lender lol oke: you know the people writing the loan

 

[sc98cbra]

OP KBB and NADA prices dont mean anything on these cars same goes with 03-04 Cobra's they are a limited production car not like super low volume but not as mass produced like a GT ask if the price is negotiable if not keep looking I myself have seen some decent prices, some deals are out there.

Not sure if this is directed at both Gt500's and 03-04 Cobra', or just 03-04 Cobra's.

GT500's have been produced every year since 2007, so they're not necessarily 'limited production.'

 

[thomas91169]

lol @ NADA/KBB.

Your best bet is to see what others in your area are scooping them up for. Then you need to actually show your face into the dealership or private party and give them your final offer. If they dont budge, then walk.

The art of vehicle negotiation seems to be lost these days. Id imagine since most buyers have forgotten how to haggle, the popularity of "no haggle" priced dealerships, etc all playing into this result.

And if a Bank/CU will only lend based on KBB/NADA and the car you absolutely want costs more, then youre gonna have to come out of pocket for the difference. That right there should tell you not to do it, but many do anyways.

 

[deathsteed]

Not only does the lender look at NADA but the dealership uses it to determine the value of your trade. And regardless of how much you spent on aftermarket mods your vehicle is only worth blue book value- unfortunately! For example I recently read a members post and he said he received $28,500 trade in value for his 09 GT500 which just happens to be the same amount as what NADA value is. So, it is used and it is a real value. The NADA lists retail for a 2009 GT500 for $33,000, but the average prices posted are between $36-39,000. So back to my original question- are people actually paying $36-39,000 for the car the dealership just grabbed for $28,500??

 

[thomas91169]

Not only does the lender look at NADA but the dealership uses it to determine the value of your trade. And regardless of how much you spent on aftermarket mods your vehicle is only worth blue book value- unfortunately! For example I recently read a members post and he said he received $28,500 trade in value for his 09 GT500 which just happens to be the same amount as what NADA value is. So, it is used and it is a real value. The NADA lists retail for a 2009 GT500 for $33,000, but the average prices posted are between $36-39,000. So back to my original question- are people actually paying $36-39,000 for the car the dealership just grabbed for $28,500??

Unless im reading this wrong

1) he was a good negotiator if he got NADA trade in value for his trade in.
2) people paying $36-39k for a car whos NADA retail is $33k are doing it wrong.
3) dealers are in the business to make money, so yeah, if they got it for $28k and sold it for $36-39k more power to them.

 

[Torch10th]

are people actually paying $36-39,000 for the car the dealership just grabbed for $28,500??

Yes, absolutely! Dealers are smart and most buyers are not. It's pretty easy to have a good condition, relatively low mile GT500 on a lot and compare it to a new one. The dealer brings the price of the new one with like options which is around or over 60k. Then it's the deal of the century to get the used one in good condition for 38K. The buyer never knows the dealer only paid 28K for it.

Especially if this is coming from a dealership that also sells new cars. Remember that most new cars have very low margins. So where does the dealer make it's profits? Used cars.

It makes perfect sense to do that. The dealer can't negotiate the price of their new cars. That price is set by the manufacturer. But we the public get to haggle on that cost. To even the playing field, the dealer goes after quality used cars that they can haggle the price down on, then sale much higher, recouping profits from new cars.

 

[spitin venom]

Unfortunately KBB and NADA do not sell cars. You need to look at market value.

 

[deathsteed]

Unfortunately KBB and NADA do not sell cars. You need to look at market value.

Ok- so what determines market value? People are still struggling with employment and extra cash for toys is pretty scarce. The 2007- 2009 model is not the latest body style and it looks like a change may come again in 2015. So what would determine a market value higher than NADA?

 

[thomas91169]

Ok- so what determines market value?

What actual buyers are buying cars for, or what realistic sellers are selling cars for. Supply and Demand also plays a role.

Dealerships will always want more money for the same car as a private party.

 

[01GTB]

Ok- so what determines market value? People are still struggling with employment and extra cash for toys is pretty scarce. The 2007- 2009 model is not the latest body style and it looks like a change may come again in 2015. So what would determine a market value higher than NADA?

A vehicle is worth what someone will pay for it. People are either buying them or dealers would have them stacking up on the lots. If they are stacking up on the lots you can expect a price reduction at some point in the future. Dealers (and anyone in their right mind) will try to get the most out of a sale as they can, but they have money tied up in it and would rather it not sit there for six months.

You have every right to show them it's not worth what they are asking by walking away.

 

[xblitzkriegx]

lenders and dealers use black book value, not blue/yellow. those are more consumer based.

 

[KurtDog]

The typical person who buys a GT500 can afford the premium and will not drive the car much. Lower miles and not needing to sell the car will keep the prices up.

I've been looking locally for a GT500 for a few years. I've seen the a few cars listed for several years. The prices and mileage have not changed. They are some what rare and most people will not discount them because they don't need to.

 

[Kiohtee]

lenders and dealers use black book value, not blue/yellow. those are more consumer based.

My lender uses NADA.

 

[CobraBob]

If a seller believes he can get $XX.XX for a GT-500, he will ask $XX.XX. If enough potential buyers walk away, the price might drop or the seller may accept a fair lower offer. Most of the time it's all about the negotiation. But not all sellers will negotiate if they're not in a rush to sell, or if they really believe it is worth $XX.XX.

 

[12mustang5.0]

Interesting I bought my car for less than bbk value TRADE IN
It all depends how you negotiate
Don't forget dealers make more in used cars than new cars

 

[Sick03Vert]

A vehicle is worth what someone will pay for it. People are either buying them or dealers would have them stacking up on the lots. If they are stacking up on the lots you can expect a price reduction at some point in the future. Dealers (and anyone in their right mind) will try to get the most out of a sale as they can, but they have money tied up in it and would rather it not sit there for six months.

You have every right to show them it's not worth what they are asking by walking away.

^This. Supply and demand really dictate prices at a dealership. We get cars in all the time that we wind up selling for $8k - $10k over what we paid to get them...as with anything else, the car is worth what someone will pay. In the case of a GT500, the dealer doesn't mind the car being on the lot to bring in traffic, so they are not going to be willing to take a loss...and will probably hold their price at $3k or so over what they paid.

lenders and dealers use black book value, not blue/yellow. those are more consumer based.

^This as well. Dealerships use auction values on trade-ins.

My lender uses NADA.

That's typical. Banks like to use NADA values because the less money they have to lend, the better. The difference in pricing has to be made up in your cash downpayment.

Interesting I bought my car for less than bbk value TRADE IN
It all depends how you negotiate
Don't forget dealers make more in used cars than new cars

The reason you paid less than KBB value is because KBB values are ridiculously inflated.

You are correct, however, in saying dealers make more on used cars.

The biggest issue here, as was the same issue on the same car in another thread not long ago, is that you are looking at what would be considered a specialty vehicle. People can argue back and forth all day about whether or not a GT500 is considered limited production or not, but the fact is dealerships WILL charge a premium for used Shelbys.

I will reiterate what I said in the other thread as well...if you don't want to pay the premium price, then look at another car that isn't such a head turner. How many people are just like you and would buy that used GT500 if the price was a little cheaper? The dealer is just holding out to make that little extra profit, and they will.

Good luck.