Redbook / Glass' guide prices

[fergus]

Has anyone noticed how these two publications have VERY different price ranges for the same model car?

eg 06 Territory turbo ghia:

Redbook trade in $31400 to $34700, private $36000 to $39300

Glass' Guide trade in $37000 to 43800 private sale $39420 to $48180

Both these mobs claim their information is the result of extensive research into both sales and advertisements for vehicles, but they must be doing their research on different planets to be almost $5,000 apart?

Which one would you use for the most accurate and realistic price?

[GoldCoastGTP]

It is simple to sell go on the Glass guide - to buy go on the Redbook

[fergus]

Brilliant! why didn't I think of that?

I bet car dealers keep both, pulling out the Redbook to buy your trade in and the Glass's for setting retail prices...........

[Yaw]

both are just a guide, however the glasses guide gives 3 prices for each car,
1st one is average, second is above average, third is excellent.

Bare in mind for excellent the car needs to be near showroom condition and low average klms.
Another car that has great descrepncies between the 2 publications is a 1995 mx5, about 2 years ago when I was selling insurance rather than doinn the claims side Redbook listed the car near $15000 and Glasses about $7900

the research they do can differ greatly just as the political polls like morgan gallop can be the same questions over a certain amount of people and get an entirely differnt answers from another group, both being statistically correct.

[Rodp]

Originally Posted by fergus

Which one would you use for the most accurate and realistic price?

The nearest dealer. Doesn't matter what either guide says, only matters what the person who ended up buying your car offered you.

[LTDHO]

I have found the red book to be the most inaccurate.

Glasses is preferred for most vehicles

[ADSXR8]

Originally Posted by LTDHO

I have found the red book to be the most inaccurate.

Glasses is preferred for most vehicles

I agree. Also with Glasses guide you can also add options to the vehicle and it alters the price. But I certainly think its more accurate.

[Buzz Box]

Well most dealers Ive been to and seen use redbook and just mentioned above they are both just a GUIDE so you never know.

[RATT]

Dealers don't use either. A good operator will value a car based on what they have been selling at and on its merits. Using redbook or glasses guide only makes the whole thing more painful as it sets the bar too high in some cases.

[dan76n]

I have been looking for a falcon XR/fairmont ghia for a few months now and when I first started looking I couldnt believe the price variance between Redbook and what people are asking on car sales. What I have found now is that there is alot of these cars which are priced above redbook that have been on car sales since I started looking, and quite a few do come through in the redbook price range and get snapped up very quickly so Im starting to think these figures a more acurate than I first thought.
Mind you Im only looking at BA+ falcon XRs and Fairmont Ghia's up to $17000

[sprint347dave]

Very Witty

[mrbaxr6t]

insurance companies love redbook, I found this out the hard way, pay you out based on redbook and there is no possible way you can get a car similar to the one smashed for the payout figure, leaving you out of pocket. Very very frustrating :

[dan76n]

I must admitt I have always insured my cars for agreed value if not just for the reason of not getting any little surprises.

[BIGJB]

Originally Posted by RATT

Dealers don't use either. A good operator will value a car based on what they have been selling at and on its merits. Using redbook or glasses guide only makes the whole thing more painful as it sets the bar too high in some cases.

What he said.
Also worth mentioning most finance companies us glasses as a guide line.

[merlin]

OK hears the deal:

Redbook get their prices from the RTA (or equivalent) which get their price from what people mark down as having paid for a car. As most of us know when you buy/sell a car privatley most cluey individuals record a much lower price than actualyl paid (with the permission of the seller) which then allows far less stamp duty to be paid. This is why redbook is traditionally a little lower than Glasses. The prices are really quite rough.

[Mr Brooksy]

Originally Posted by RATT

Dealers don't use either. A good operator will value a car based on what they have been selling at and on its merits. Using redbook or glasses guide only makes the whole thing more painful as it sets the bar too high in some cases.

Sorry RATT, but I was sitting in the office of a car yard a few days ago, and the sales guy swung his moniter around for me to look his redbook page, which the chain of yards he works for uses religiously.

He even explained to me why they use redbook, and why I shouldnt buy his cars, and go back to Orix for a Falcon or Commodore! I was a little surprised as you can imagine.

So if this car yard (a national chain) uses it, then surely there are more out there that do.

[Nappa]

Originally Posted by Mr Brooksy

Sorry RATT, but I was sitting in the office of a car yard a few days ago, and the sales guy swung his moniter around for me to look his redbook page, which the chain of yards he works for uses religiously.

He even explained to me why they use redbook, and why I shouldnt buy his cars, and go back to Orix for a Falcon or Commodore! I was a little surprised as you can imagine.

So if this car yard (a national chain) uses it, then surely there are more out there that do.

Was he giving you a quote on the trade in, or just giving you a rough idea of what its worth. Dealers always have a valuer who's job it is to value the trades in. It would be unwise to start quoting figures with out getting a trade in price of the valuer. I sometimes use redbook to back up the figure i have given someone if they arc up about their trade in value.

[FTE217]

I reckon the average salesmen use redbook as a guide, also its easy to get the info you require compared to Glass's which you need to be a subscriber for all the info hence why redbook is quoted widely.

[dan76n]

Originally Posted by merlin

OK hears the deal:

Redbook get their prices from the RTA (or equivalent) which get their price from what people mark down as having paid for a car. As most of us know when you buy/sell a car privatley most cluey individuals record a much lower price than actualyl paid (with the permission of the seller) which then allows far less stamp duty to be paid. This is why redbook is traditionally a little lower than Glasses. The prices are really quite rough.

Are you sure about that?
No doubt some people would do this but I wouldnt think enough to have too much of an impact on redbooks figures, you are only saving $30 per $1000 you reduce. Also Im pretty sure stamp duty is based on the market value or the price you paid, whatever is the higher.

[Mr Brooksy]

Originally Posted by Nappa

Was he giving you a quote on the trade in, or just giving you a rough idea of what its worth. Dealers always have a valuer who's job it is to value the trades in. It would be unwise to start quoting figures with out getting a trade in price of the valuer. I sometimes use redbook to back up the figure i have given someone if they arc up about their trade in value.

No actually, we weren't trading anything. He was explaining how they got to the sticker price on his car(s).

[mrbaxr6t]

Originally Posted by dan76n

I must admitt I have always insured my cars for agreed value if not just for the reason of not getting any little surprises.

even so they must be watched, I had a car depreciate in insured value 50% in twelve months (yet my premiums were still inflated), and it became insured for less than the same car at market (redbook) pricing - made me so angry I tell you, had to tell them to increase the insured value again to what I wanted it at (above redbook)

[merlin]

Originally Posted by dan76n

Are you sure about that?
No doubt some people would do this but I wouldnt think enough to have too much of an impact on redbooks figures, you are only saving $30 per $1000 you reduce. Also Im pretty sure stamp duty is based on the market value or the price you paid, whatever is the higher.

Yes I am sure.

"Some people". I would estimate 80% of private sales do it and your not saving $30. Most mark it down on average $5000 (i have even seen someone mark it down $10K once). Stamp duty is based on whatever price you state you have paid not market value.

[RATT]

Sorry gentlemen but I think you are leading yourselves astray here.
Who ever uses Redbook or similar to value cars will a) get burnt and b) "burn" alot of customers.
I was a valuer at Peter Warren Ford Smithfield for a couple of years and I never refered to it. As a salesman I did.

Valueing cars is not simply just opening a little booklet or website, and then taking $5000 off the price before telling a customer!

No reputable dealer would do this. Most learn what cars are worth via experience, what they are selling for in the yard and at auctions.
And somewhere in between all this you will be able to make a sood judgement on a car! Firstly to sell a car, and secondly to be able to make a profit.

Remember this important point: "No two used cars are the same.... "
Think about it.