In the Auto World what really is Wholesale…???

You hear the term, wholesale, retail, tradein….ever wonder what they really mean and how they relate to your car buying or selling experience.

You can go online and get Kelley Blue Book values for private party, retail and tradein….  As a dealer the wholesale value is a number we can buy the car at, clean it up, make sure it is safe, resell it and make a few bucks.. very simple but how do we determine what that number is.  Personal experience is best…but often times, a car will come along I have not purchased before.  We “BOOK” them out.  A dealers booksheet (what we call them) gives wholesale aand retail….now the problem is…as a dealer you still have to add in personal judgement.  A car for example with a wholesale value of $13,554…does that mean that is what I should be able to buy it for…not necessarily .

Sometimes…yes sometimes no…

I know that sounds crazy but our business is not a pure science…for example, if this car had high miles, it would probably sell for as much as $2000 below that wholesale figure….and that would be the real wholesale… Now take a Honda Accord with wholesale values of the same $13,554 with average miles, and find it might sell for the full wholesale amount… It all comes down to miles, condition, number of owners, accidents and current market desirability.

Take the Toyota Prius

Toyota Prius, are an interesting phenomenon When gas is high they will consistently sell for over that wholesale figure, I have seen them sell for 1000 to 1500 over my dealer wholesale figure…drop gas to under $2.00 a gallon, and your back buying them at wholesale or less…and gawd forbid we see gas back at $4.00 per gallon, people will go silly again and start paying way over for them… The equation for the Prius right now is fuel economy makes them a market desirable commodity when gas is high, not such a big deal when its not…

Bottom line…run the online book value, use Private Party good to excellent and in most cases you will be close to what a fair market value would be.  Use the tradein value to the low end PP value and that should give you a feel for wholesale.

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