Friday, August 12, 2005

Bothering me? No, Bothering You.

I don't remember where I found the article, but it mentions that the road construction industry is just a big scam. All those people who are usually paid by the hour standing around, for hours at a time, doing absolutely nothing. Example, the guy that holds the sign warning you of the upcoming hazard. Well, he probably gets paid $8-$10 an hour. However, you could buy the sign frame for what? $16.

Paving a 12x12 patch should not take a month. Hell, they had our driveway done in an afternoon.

Road Taxes are the single largest income that out cities, states, and counties receive. What do we have to show for it? Gridlock and potholes. Not enough roads for the traffic and roads to shitty to drive on. Average maintenance cost for drives due to road hazards is close to $500 a year.

And another thing is car dealerships. I know, this topic has been beaten to death since the automobile became standard fair, but when you decide to get rid of your car you have three prices; retail, private party, trade in.

Retail, the price you should expect to pay at a dealership.

Private Party, the price you should expect to pay from an individual.

Trade In, the value you should expect from a car dealership.


A 2002 Chevrolet Trailblazer’s retail price is $17,230.
That’s a little less than what we paid three years ago. A loss of around $3k.

Private Party value is $14,280.
$3K loss from retail and $6K from the start.

Trade In value is $11,900.
$5,330 off retail and a nearly $9k loss.

My question is why does a dealer get to purchase cars WAY CHEAPER that their worth and sell them for WAY MORE than their worth?

Kelly Blue Book says retail price is:
The Kelley Blue Book Suggested Retail Value is representative of dealers' asking prices and is the starting point for negotiation between a consumer and a dealer. This Suggested Retail Value assumes that the vehicle has been fully reconditioned and has a clean title history. This value also takes into account the dealers' profit, costs for advertising, sales commissions and other costs of doing business. The final sale price will likely be less depending on the vehicle's actual condition, popularity, type of warranty offered and local market conditions.

And Trade In:
Trade-in Value is what consumers can expect to receive from a dealer for a trade-in vehicle assuming an accurate appraisal of condition. This value will likely be less than the Private Party Value because the reselling dealer incurs the cost of safety inspections, reconditioning and other costs of doing business.

And Private party:
Private Party Value is what a buyer can expect to pay when buying a used car from a private party. The Private Party Value assumes the vehicle is sold "As Is" and carries no warranty (other than the continuing factory warranty). The final sale price may vary depending on the vehicle's actual condition and local market conditions. This value may also be used to derive Fair Market Value for insurance and vehicle donation purposes.

So, WTF?

Say I recondition my car to BETTER than dealer spec. (Trust me, that’s not hard to do.) Why can I not sell it for retail? I may incur expense upon selling the car.

I don’t know, that has just been eating at me lately.

Oh, when you go to look for a newer car from a dealer SELL YOUR CURRENT CAR. DO NOT TRADE IT IN!! Mainly for the reasons outlined above, but dealers will tack some extra cash upon that final purchase price because they not have another car to get rid of. Now having a trade in puts the buyer in a better position to haggle.

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