Blue book value vs. fair market value

[bozer]

I'm heading to an RV dealer today to look at a 2021 Northwood Nash 24M. The NADA (J.D. Power) guide has a listed average retail price of $22,250. The dealer is asking an online price of $29,995. Over the phone I told him about the blue book listing price being quite a bit lower, but he said they don't go by blue book, they go by fair market value. Is this a real thing or should I hold him to the blue book price? I've been searching for Northwood travel trailers for a while now and I feel like the blue book listing of $22,250 would be a good deal and that price point may be a low. I'm thinking of maybe meeting him in the middle at around $26k. BTW I'm in California where everything is expensive. Any input would be greatly appreciated, thanks in advance.

 

[Jireh Financial]

Good morning,
When I sent you the figure of $22,500, that did calculate a CA zip code. I picked one in the middle of the state as an option. Fair market value is what NADA (JD Power) uses. They don't pull random numbers out of the sky. It is up to the manufacturer to present numbers to the valuation service. The subscription we pay for with NADA (JD Power) is updated 6 times a year so any market trends are calculated in. Basically, if you over pay for something, you may still be lop sided on the day you sell.
Let us know how we can help.
Ken

 

[Boat Bum]

What worked for me when buying my wife's Audi and using the BB value was to reason with them that this is the price insurance companies look at when deciding a car's value, if I'm totaled tomorrow that's what I'm going to get back. In my case I got my price which I feel was reasonable, it might help get you negotiate a lower price.

 

[bozer]

Good morning,
When I sent you the figure of $22,500, that did calculate a CA zip code. I picked one in the middle of the state as an option. Fair market value is what NADA (JD Power) uses. They don't pull random numbers out of the sky. It is up to the manufacturer to present numbers to the valuation service. The subscription we pay for with NADA (JD Power) is updated 6 times a year so any market trends are calculated in. Basically, if you over pay for something, you may still be lop sided on the day you sell.
Let us know how we can help.
Ken

I agree with you, but when I do a nationwide search for a 2021 Nash 24m nothing less expensive comes up. All I can do is make him an offer and if he doesn't except it, I'll walk away.

 

[bozer]

What worked for me when buying my wife's Audi and using the BB value was to reason with them that this is the price insurance companies look at when deciding a car's value, if I'm totaled tomorrow that's what I'm going to get back. In my case I got my price which I feel was reasonable, it might help get you negotiate a lower price.

That's a good idea, I'll try that.