Thinking of selling my CPO 2012 C4S with PSE
02-25-2017, 10:06 AM
#31
Some things to note.
1) looking at pure data in these charts is meaningless since you have to adjust for actual condition and for the "minor" issues many cars have. When I did a quick search for a low price 997 turbo I did find one for $64k... but with an accident record. It then skews the data down. There is nothing to "skew the data up" in used cars, so if you have a clean car you can't just take a midpoint number.
2) To assume a 10-15% discount for private party when there is an active and transferable CPO warranty on the car means there is a major arbitrage opportunity. This could exist but in my search for my own car 2 or 3 years ago, the difference was much smaller once you look at apples-to-apples comparisons for cars. The main benefit dealers do have is buying from people below market price as a convenience feature to make for a speedy sale. They also have marketing scale so moving a car private will be expected to take longer.
3) Buyers and sellers combined make the market but I can't find comparable cars listed at the prices that were thrown around (mid to high 40s and turbos in the high 50s). That is all that matters, everything else is theory until you insoect the car.
I could have paid $10k-$15k less for a car that looked very similar to mine. Had it inspected and not only was there structural damage, the repair work was shoddy. That car was another "datapoint" but was a meaningless reference number during my search.
Again, i would love to see the cars and prices thrown around on here. I pop some parameters into autotrader and then see what is out there and assume around 5% flex doen on avg price and then add that 5% back to assume what a nice and clean example goes for.
BTW, I don't think $55k is impossibly low for the car if someone needs a faster sale. Winter isn't the best time to sell either...
1) looking at pure data in these charts is meaningless since you have to adjust for actual condition and for the "minor" issues many cars have. When I did a quick search for a low price 997 turbo I did find one for $64k... but with an accident record. It then skews the data down. There is nothing to "skew the data up" in used cars, so if you have a clean car you can't just take a midpoint number.
2) To assume a 10-15% discount for private party when there is an active and transferable CPO warranty on the car means there is a major arbitrage opportunity. This could exist but in my search for my own car 2 or 3 years ago, the difference was much smaller once you look at apples-to-apples comparisons for cars. The main benefit dealers do have is buying from people below market price as a convenience feature to make for a speedy sale. They also have marketing scale so moving a car private will be expected to take longer.
3) Buyers and sellers combined make the market but I can't find comparable cars listed at the prices that were thrown around (mid to high 40s and turbos in the high 50s). That is all that matters, everything else is theory until you insoect the car.
I could have paid $10k-$15k less for a car that looked very similar to mine. Had it inspected and not only was there structural damage, the repair work was shoddy. That car was another "datapoint" but was a meaningless reference number during my search.
Again, i would love to see the cars and prices thrown around on here. I pop some parameters into autotrader and then see what is out there and assume around 5% flex doen on avg price and then add that 5% back to assume what a nice and clean example goes for.
BTW, I don't think $55k is impossibly low for the car if someone needs a faster sale. Winter isn't the best time to sell either...
I have a background in the car business, hope this helps anyone reading this. Info on the chart (which was posted in a different thread, dealer retail, typical sale price is 2% under asking from the chart). 53% of original price at dealer retail according to the chart, sale price 51% or so, so actual sale price in the range of $60,500. Figure private party is anywhere between 5-8k under that, given that dealer wholesale would be 20% less than real world sale price, so $48k. Private party $52-55k as a result. He would pay up to $50k for the car (depending on if it needs tires, maintenance history), list it for $62,900, hope to sell it for $61,500, worst case $58k. OP would be doing VERY well to get $55k private party.
