How True are Redbook Values

[jason_85]

Hi

I have been spending a while looking at used cars for sale and seeing how close they are to the values redbook put on them and taking into mind any options that have been fitted. In that time i havent seen too many cars within the private sale region or remotely close to what people (Redbook says) would get for a trade.

Just a few questions.....

Have most people who have bought used cars paid in this region?

If they havent then where do these figures come from?

I believe its a buyers used car market at the moment and from what i see people always struggle to sell. Why arent these sale prices anywhere close to these values (if they're correct) because you will only get peanuts from a dealer?

[Polyal]

Great if you are buying, not so good if you are selling.

Redbook only applies (and thats being nice) when the car is completely stock, and has no enthusiast value behind it.

[Falcon_Phill]

Apparently my fairmont is worth $2300. Good ******* luck finding one for that price in its condition.

[jason_85]

Originally Posted by Polyal

Redbook only applies (and thats being nice) when the car is completely stock, and has no enthusiast value behind it.

True that but i guess it varies from car to car and what has been done and how much those modifications are actually worth when you go to sell it?

[TZENU]

Am pretty sure that they have now adjusted their figures according to show a range of what the market is paying for, for specific cars ...

[sfr rob]

red book is a joke, who ever compiles the information needs a good hard slap.

[Unco]

it's relatively accurate, IMO when you look at it nationwide. for a more accurate idea of car prices in your state, check out the trading post.

[jason_85]

Originally Posted by sfr rob

red book is a joke, show ever compiles the information needs a good hard slap.

Q. How does RedBook arrive at the vehicle prices it quotes?
A. 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 classified 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.

[sfr rob]

still, it is WAY off the mark, I think they should really fine tune it a bit more.

[Falcon_Phill]

XY GTHO Phase III Sedan 4dr Man 4sp 351
Prices based on km 540,000 - 900,000
National average price - private sale* $335,800 - $425,000

Righto.

[jason_85]

Originally Posted by Falcon_Phill

XY GTHO Phase III Sedan 4dr Man 4sp 351
Prices based on km 540,000 - 900,000
National average price - private sale* $335,800 - $425,000

Righto.

Haha

I think there are restricitons on the age of the vehicle when you look at redbook. I think as the car gets older the valueing gets worse..... mainly due to condition varying alot and sales probably go done so they have less information to base there info on?

[MickyB]

I have found that for newer cars it's quite accurate. The older cars get however, the more Redbook loses the plot.

[TZENU]

LOL

How many Phase III's would have covered that much mileage? Out of the 300 i wouldnt think many, if any...

[Nickxb]

I dont trust it, its too inaccurate. Your better off actually looking in the market, ie car sales websites. This will give you a better reflection of the market value of your vehicle.

[james22]

2001 FORD FALCON

AU III XR8 Sedan 4dr Man 5sp 5.0i
Prices based on km 90,000 - 150,000
Trade in price guide* $9,500 - $11,300
National average price - private sale* $12,600 - $15,800
Price when new (RRP) $48,420


*BUZZER* WRONG ANSWER!!!! lol

Paid $19,500 for mine when I picked it up with 117,000km

[4Vman]

Originally Posted by james22

2001 FORD FALCON

AU III XR8 Sedan 4dr Man 5sp 5.0i
Prices based on km 90,000 - 150,000
Trade in price guide* $9,500 - $11,300
National average price - private sale* $12,600 - $15,800
Price when new (RRP) $48,420


*BUZZER* WRONG ANSWER!!!! lol

Paid $19,500 for mine when I picked it up with 117,000km

All i could get for mine in immac cond with all the options was 16K with 80K on the clock....

[S3SR]

red book is the worst thing ever invented, its really designed for the more populated areas, and bigger cities, come to country or regional and the prices hurt everyone but the buyer

* should stand for, "we dont actually care but these prices should last a few years so we only have to update the site once"

redbook....the only book that ever made me angry, and i havent read it

[4.9 EF Futura]

Originally Posted by jason_85

Q. How does RedBook arrive at the vehicle prices it quotes?
A. 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 classified 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.

Yep, sounds fair to me.

Realise that they will be capturing observations from government clearance auctions which is obviously going to bring the average down.

[jason_85]

Originally Posted by S3SR

red book is the worst thing ever invented, its really designed for the more populated areas, and bigger cities, come to country or regional and the prices hurt everyone but the buyer

* should stand for, "we dont actually care but these prices should last a few years so we only have to update the site once"

redbook....the only book that ever made me angry, and i havent read it

I think as a buyer though prices can't inflate that much for say townsville!!! Sellers can't put the price up too much..... it isnt that much of a mission to go to brissy to buy a car especially with cheap flight especially if you can save a considerable amount of money

At the end of the day cars arent an investment (99%) and everyone buys one knowing they will depreciate... why????... cause there is past history on this!

[S3SR]

Originally Posted by jason_85

At the end of the day cars arent an investment (99%) and everyone buys one knowing they will depreciate... why????... cause there is past history on this!

yeah fair call, but to depreciate to almost having to pay someone to take the car is stupid, and i partly blame red book for it, then fuel and so on

20k down to almost 7 in not even 2 years WTF... i researched cars looked everywhere, looked at red book prices and that was a good buy for me then, but that much come on

[Smoke Pursuit]

Redbook is very close to the money providing the car is in fair conidtion, falls within the km average and represents what that particular model would have from new (that means no expensive wheels / accessories).

S3SR i assume your saying you paid 20 grand in 2005 for your SR??

You could have bought a BA Futura for less at the time, the realistic value of an AUIII SR in 2005 would have been around 14 grand, not 20...

[Ford_V8]

Remember that something's only worth what someone will pay for it. Seems to be alot of " This is a great price for something like this so ****** off if you think otherwise " around the for sale section. It's these same cars that are still sitting there 6 months later without any interest. I think the redbook price anger is just sellers coming to the harsh realisation that their car is worth thousands less than they hoped. Most buyers would use the redbook evaluation as a guide anyway so chances are if your car is higher than the range there they won't be interested unless its got something special to show for itself.

[Riksta]

Redbook prices always seem a tad on the low side from my experience.

[Blue Oval Mopar Man]

Out of curiousity , and actually thinking about buying a brand new BA III XR 8 Ute , about 2years ago, I asked for a price on my trade in 5.8 ltr , Tremec 5 speed , Disk 9in , air,steer, simmons, immaculate paint , tinted , way too much more to list 7 / 79 XD Spac Sedan . Walked out insulted and in no way accepting their explaination ! I could get a fair condition Xf GL sedan , fix it up a little and get the same trade-in price ! I could see them rubbing their hands together when they were trying to make the deal ! Stuff the red book , its a tool Auto dealers use to try rip off customers . I could ask more than 10K easily and get it ! They Knew it and even admitted that they would wholesale it to the car yard next door because of its age. Thing is , THEY own the yard next door and I know what price they would have put on it !

[jason_85]

Originally Posted by Ford_V8

It's these same cars that are still sitting there 6 months later without any interest. I think the redbook price anger is just sellers coming to the harsh realisation that their car is worth thousands less than they hoped. Most buyers would use the redbook evaluation as a guide anyway so chances are if your car is higher than the range there they won't be interested unless its got something special to show for itself.

This is a good point....

I see so many cars for sale that are for sale for a long time (with sellers apparently needing to sell) and the price isnt remotely close to the redbook value.
Would as sellers people get offended of an offer that was based on redbook figures do you think???

[Yellow_Festiva]

This will make people think next time they say "insure it for market value" when they are on the phone with whatever company they so choose.

Red book, as well as the Glass Guide are used, and many people are shocked to find what the insurance company values cars at.

My insurance value was a joke when it was time to make a claim, even the highest level of value was under par in my opinion.

They asked for proof, so i sent them the thousands spent on proper servicing, and the fact that the car was always looked after with no expense spared.

They increased the value, which allowd the insurance claim (a repair) to go through.

If i was to get the cheque for what they were gonna give me there is no way i could have found a replacement for my car unless i injected a fair amount of cash on top.

[JBomb3000]

Originally Posted by Blue Oval Mopar Man

Out of curiousity , and actually thinking about buying a brand new BA III XR 8 Ute , about 2years ago, I asked for a price on my trade in 5.8 ltr , Tremec 5 speed , Disk 9in , air,steer, simmons, immaculate paint , tinted , way too much more to list 7 / 79 XD Spac Sedan . Walked out insulted and in no way accepting their explaination ! I could get a fair condition Xf GL sedan , fix it up a little and get the same trade-in price ! I could see them rubbing their hands together when they were trying to make the deal ! Stuff the red book , its a tool Auto dealers use to try rip off customers . I could ask more than 10K easily and get it ! They Knew it and even admitted that they would wholesale it to the car yard next door because of its age. Thing is , THEY own the yard next door and I know what price they would have put on it !

Mate what do you expect, dealers have no interest in trading stuff that old, i'm surprised you bothered at all. I think the harsh reality is out cars aren't worth as much as we would like to think they are in general and anything with a blue oval badge is depreciating faster than the titanic heading for the bottom. I think my next car will be a Subaru.

[sfr rob]

I think my next car will be something off shore as well, not just for the depreciation but the build qual.
back on subject.
The other day i popped in to a local Ford dealer to enquire about a certain vehicle and i said out of interest what would you give me for my ba ghia, he quickly jumped on his computer punched away, spun the screen around and there it was, redbook.com.au with a price tag of $15,000 for my car . : I just got up and left

[Nickxb]

Originally Posted by Yellow_Festiva

This will make people think next time they say "insure it for market value" when they are on the phone with whatever company they so choose.

Red book, as well as the Glass Guide are used, and many people are shocked to find what the insurance company values cars at.

My insurance value was a joke when it was time to make a claim, even the highest level of value was under par in my opinion.

They asked for proof, so i sent them the thousands spent on proper servicing, and the fact that the car was always looked after with no expense spared.

They increased the value, which allowd the insurance claim (a repair) to go through.

If i was to get the cheque for what they were gonna give me there is no way i could have found a replacement for my car unless i injected a fair amount of cash on top.

Insurance companies dont just use the glasses guide to value the vehicle. Assessors have a fair idea of what a vehicle is actually worth, they also look on car websites such as cars guide to find simular priced vehicles and go from there. If you complain then any decent insurance company should get an independent valuation.

People hate that their car depreciates and they take out their anger on the messenger. A website cant look at your car so it is just an estimite, your car might be worth more than the market. Then again it might not be.

[4.9 EF Futura]

More to the point than insurers, pretty much all banks and credit unions will use the redbook/glass' guides to determine how much they are able to extend against the value of the security (i.e. the car).