Redbook valuations- What do you think ?

[SummerTrance]

Just wondering what others think about the valuations given by redbook. From what i've noticed lately, the valuations on Redbook seem to be much lower than what vehicles are advertised and selling at. The below question and answer is copied from their site. But all the vehicles ive been looking at, Redbook offers a much lower valuation then anything on the market. While I understand a vehicle is only worth whatever someone else is prepared to pay for it, it can make it hard to sell a vehicle for decent money, when Redbook says it's worth 5 grand less then what you want for it, and then people say to you "well Redbook says their only worth x amount.

Im currently trying to sell my V8 Holden Adventra AWD, to get a real 4WD with proper offroad ability.

I purchased my vehicle about 18 months ago for $29 000, and now got it advertised for 20k, and had basically no interest. At this stage i'd be happy to get 18k. Redbook says its only worth $13400 - $16100. Really at this stage i really just need enough to pay out my loan on the vehicle. Im over the fact im gunna loose a shitload.

On the other hand, im looking a Nissan Pathfinders and other 4WD's. For 2001 pathfinder Ti models, Red book says 11000 - 13000, but all vehicles advertised (within the klms range quoted on redbook) ranges between 16000 - 200000.

So basically what im interested in from other members, is do you take any notice of Redbook valuations when trying to sell, or purchasing a vehicle ? and do you think their valuations are accurate ?


How does RedBook arrive at the vehicle prices it quotes?

RedBook's price guides are derived from extensive research which encompasses obtaining details of sales through auction houses and motor dealers all around Australia, from vehicle manufacturers, from monitoring the classifed advertising in every major publication in Australia and from actual field research. This vast volume of data is reviewed by RedBook's expert pricing panel and adjustments made. Each month RedBook changes around 30,000 prices in its database of over 50,000 vehicles.

[the lobster]

I really think your geographical location is a big factor in the accuracy of the prices. I would assume that they would be reasonably accurate in Sydney, Melbourne and possibly Brisbane, but in any regional towns/cities, the lack of competition drives the prices up considerably. Personally, since I live in Townsville, the Redbook prices basically mean nothing to me. I would expect to pay up to $5k more than the Redbook price when buying a vehicle locally.

For example, I keep a decent track of the dealers here and look through the classifieds most weekends. If I was after a diesel 80 Series Landcruiser on any given weekend I would expect between 1 and 4 vehicles to be for sale at dealers and about the same number privately. However if I was in Sydney or Melbourne, I'd assume there'd be at least 5 times that many available. With that much more choice, dealers and private sellers can't charge as much to sell vehicles. So I'd expect the Redbook price to be pretty close in the major capitals. I'd also assume that Redbook gets most of it's data from capital cities.

The trade in prices are a complete joke. There is no way that any dealer would offer anything like the trade in prices on Redbook, from my experience and that of friends etc. Again, larger cities may be different.

Just my $0.02.

matt

[Jabba_]

Unfortunately you bought a very unpopular car. The Holden Adventra was a dud where sales are concerned.. The new car buyers didn't like them so I cant see the Adventure doing any good with it resale value. The redbook and your comments prove it....

Your Adventra is also a V8.. There about as popular as a bad head cold with the uncertainyty off fuel prices.. That is also going to hurt your resale.

[catfishkid]

I do agree with jabba that the adventra was never a big seller for holden.
As for red book prices I think they are a joke really.I am selling my hilux and the redbook value is way below what I am asking.Yes you will find hiluxes for the prices they quote but they are generally flogged to death plus mine has a heap of extras,I know I probably wont get what I am asking but I will keep it before I go down to the prices redbook quote as its value.
I think the market dictates what a car is worth and at the moment cars are hard to sell so you will have to meet the market(Look at carpoint and compare what the market has to offer for vehicles the same as yours).

Cheers Craig

[the lobster]

Unfortunately you bought a very unpopular car. The Holden Adventra was a dud where sales are concerned.. The new car buyers didn't like them so I cant see the Adventure doing any good with it resale value. The redbook and your comments prove it....

Your Adventra is also a V8.. There about as popular as a bad head cold with the uncertainyty off fuel prices.. That is also going to hurt your resale.

I agree. As a rule Holdens and Fords don't hold value anywhere near as well as Toyotas, Nissans, Mazdas etc, and the Adventura was/is definitely an unpopular car. That's irrelevant to the original question though. At the end of the day Redbook figures come from data from somewhere. Some guy doesn't just sit down and make them up (I would hope, anyway), I just don't think the values are relevant to a big percentage of the Australian population. We'd have to know the specifics of the sample data to know for sure, ie how much data come from each state, what percentage is dealer data and what is private, what percentage is from capital cities and how much is from regional sales etc etc etc.

That leads me to thinking that if the sale data is kept electronically in a reasonably current database program (and let's face it, it would have to be for Redbook to remain credible) it should be pretty straight forward to give a state by state price breakdown for each vehicle, or even a region by region breakdown, depending on the accuracy of the data collected. That would be far more useful than an Australian average.

matt

[Dan5]

What your insurance company is willing to pay you out in the event of a total loss is generally more accurite..........IMO........Red book are usually a little under true value for my liking.

Dan,

[TimiBoy]

At this time of year it maay be that Redbook is still collating some of last year's data? I remember from somewhere that the more you get into a year, the less accurate it is, as it's collated around the start of the year.

But at the end of the day it is collated on the basis of what people SOLD them for, not what they are advertised at. Everyone thinks they'll get a bit more for it, so they advertise high.

I sold my GUIII Patrol in November 08 for $3,500 UNDER the redbook valuation. It was the only offer I got after a month of advertising, it was in great nick, featured up, and low km's.

IMO Redbook is a bit of a waste, use it as a part of your research, but don't rely on it.

Cheers,

Tim

[lippa]

dont even bother looking at the red book. its just for dealers and insurance companies to get a ball aprk figure on a vechile, most motor dealers dont even rely on them that much any more. insurance companys love them because it does way under value cars.

search the net, classifieds ect. look at 5 dealer cars and 5 private ones. then do an honest rating on your car, ie is it a gem, or been knocked around, service history ect.,

your price has to be cheaper than a dealers. your not offering a stat warranty.

if its a glamour, price it5 a lil higher than the other private vechiles, if its had a hardlife, price it at the lower end.

cheers

lippa

[jimbamb]

Redbook prices were designed for DEALERS and as such the prices are set so dealers can make their 4/5 grand on each car
Go to a hahf dozen dealers and you will get offered the same price or very near cuz they all use the same book/or computer programme
Jim

[White Pointer]

G'day,

There's a saying among car dealers about the value of Redbook. It's great for putting your knee on when inspecting the underside of a car to make a valuation.

The open publication of Redbook pricing (and others) has done nothing but drive prices down because Redbook collect wholesale data from wholesale auctions and data from dealers who tell them what fits their purpose.

Recommendations:

1. Keep the Adventra and drive it into the ground. The loss on resale buys a lot of fuel over the next ten years, or so.

2. Offer a swop with a cash settlement equal to the retail difference in the retail prices of the cars in question. Barter is good in recession.

White Pointer

[shano]

no redbook is just an indication only not really anything to go by! the price is governed by demand!

[azzure]

unless you are a car dealer, you dont get the "proper" redbook. DONT BE FOOLED!!! its a estimate, its nothing rock solid. i am heavily involved in motorsport, and believe me its better for you to analyse the market (eg. carsales.com.au and other forms of media) find your average price and compare that price to your car with someone else selling their vehicle around that average "price" range. for example if the average was $15,000, and bob is selling his rodeo for $16,000 but your rodeo has 22 inch chrome wheels with a aftermarket exhaust system and loud stereo that bob doesnt have, bump your price to $18,000 FOR EXAMPLE!!!

mate if you want some more info on the car shoot me through an e-mail, azurbeslagic@hotmail.com and see if i can help you anymore in regards to a 18month old car losing $8,000.