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Will Power Dollars affect KBB?

Daman98

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#1
Here's a question, will the $8000 discount on this year's Redeyes affect the Kelly Blue Book value next year? Next year when the 2020's come out and KBB values the 2019's, will only the traditional 10% reduction ($8000) be there or will PD be taken into count....thus a reduction of $16000 the very first year for all RE's.... even those that did not purchase with power dollars? Just planning ahead.
 


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#2
My understanding, from the dealership I use, is that they do not use KBB.
 


Jack_Toepfer

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#3
Yeah. Look at NADA if you’re curious as to the value of your car to a dealership.
Realistically the value of your car is also based on the car you’re purchasing. They make their money either way.
 


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#4
Nope. The fact that they severely overproduced 2016’s hasnt affected them either. Msrp is msrp and depreciation will start there. Not all RE’s ordered got the rebates either. Super late in the year and only a small percentage will actually get the discount anyway when you look at the big picture.
 


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#5
NADA reflects "market value" and doesn't care about MSRP it has everything to do with what it's worth after there is a trend of it selling. So, if the only sales for the RE are at a discounted rate, NADA will reflect that.

https://www.nadaguides.com/FAQ/values-and-pricing#q56
 


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#6
NADA reflects "market value" and doesn't care about MSRP it has everything to do with what it's worth after there is a trend of it selling. So, if the only sales for the RE are at a discounted rate, NADA will reflect that.

https://www.nadaguides.com/FAQ/values-and-pricing#q56
But that’s all relative to the msrp starting point. There’s no escaping the fact that that’s where it all starts. Without it there’s no market value. Im not saying it’s based on msrp, im saying that’s where depreciation begins and market value takes over from there.
NADA wont take people getting a deal here and there on a new car into the mix. That’s irrelevant. If i got 50% off a new car somehow, NADA isnt going change, and re-sale in general wont either. Maybe if everyone did then things would be different. It still has a consistent depreciation from msrp initially. It takes a while for market value to then affect things. Not enough of these will be sold with rebates to affect resale or book values.
Look at it from the opposite view. ADM’s. A percentage of people paid them. Did it raise book values or even resale values? Nope. Same principle.
 


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Jack_Toepfer

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#7
But that’s all relative to the msrp starting point. There’s no escaping the fact that that’s where it all starts. Without it there’s no market value. Im not saying it’s based on msrp, im saying that’s where depreciation begins and market value takes over from there.
NADA wont take people getting a deal here and there on a new car into the mix. That’s irrelevant. If i got 50% off a new car somehow, NADA isnt going change, and re-sale in general wont either. It still has a consistent depreciation from msrp initially. It takes a while for market value to then affect things.
To be fair, yes, for a 2019 the MSRP does carry some weight because there simply isn't enough data to ignore it. Until there is a lot of data - after MSRP isn't relevant - you need to use it. I agree.
 


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#8
All what the market will pay.

I am interested to see what sales will be when this rebate program goes away. Seems like inventory is moving on the auto sale sites and a couple close to me sold pretty quickly when the deals launched.

I'll be hard pressed to pay over 75k for a new RE even if it is a 2020 at this point. Its the same damn car
 


Slowpoke387

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#9
All what the market will pay.

I am interested to see what sales will be when this rebate program goes away. Seems like inventory is moving on the auto sale sites and a couple close to me sold pretty quickly when the deals launched.

I'll be hard pressed to pay over 75k for a new RE even if it is a 2020 at this point. Its the same damn car
Exactly what I was thinking too. If they were giving away 2019’s, why would anyone pay more for for the same car in 2020?
 


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#10
Here's a question, will the $8000 discount on this year's Redeyes affect the Kelly Blue Book value next year? Next year when the 2020's come out and KBB values the 2019's, will only the traditional 10% reduction ($8000) be there or will PD be taken into count....thus a reduction of $16000 the very first year for all RE's.... even those that did not purchase with power dollars? Just planning ahead.
What I have been told a few times when I try using Kelly to make my trade point with a dealer. We don't really use that. We just call for a buyer bid lol. So if you bring in brand X, they make calls to brand X dealers and get their buy bid. What a joke!

It will be interesting to see the market reflection as a whole after all is said and done!
 


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I've heard every each way from dealership. I've seen dealerships use KBB, NADA, and even edmunds. Usually if they use one, they lay it on think on why the other is not "true value". I have even had them denounce all and promote "their own market value analysis". NADA usually seems to be higher to KBB.
 


Slowpoke387

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#12
What I have been told a few times when I try using Kelly to make my trade point with a dealer. We don't really use that. We just call for a buyer bid lol. So if you bring in brand X, they make calls to brand X dealers and get their buy bid. What a joke!

It will be interesting to see the market reflection as a whole after all is said and done!
Rest assured if you bring in a trade that has super low book, they're using book lol. When it's high they're using that line on you though.
 


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#13
I think the 2020 model year will be a reflection of the 2016 to 2017 model year production. Meaning the dealers just learned a lesson the RE is pricey and will be a slow mover. Unless factory order then most dealers probably will only order maybe one and or none. Just look at how the Hellcat inventory is not huge overall as well.
 




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