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Posted by Stephen Goldberger [Email] (more from Stephen Goldberger) on Wed, 4 Oct 2017 05:32:28 Share Post by Email
In Reply to: ok, I now see those are overpriced, TML [Profile/Gallery] , Mon, 2 Oct 2017 07:14:49
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Starting with MSRP, cut the number in half every three years. (turn your iPhone sideways and the calculator switches into scientific mode. The button you want is x to the y power, where x is o.5 and y is n/3 where n is the age in years. Multiply the MSRP by that number to get the starting price). Adjust for mileage: add ten cents per mile under 10,000 per year, subtract 10,000 per mile over 15,000 per year. Adjust for condition. That gets you pretty close to a "fair and reasonable price" for both buyer and seller.

This is a starting point, of course. Is the seller distressed? Is the buyer emotionally attached already? Is the car company belly up or is the car an oddball for which parts and service are difficult to find?

Remember that dealers typically pay much lower that the above for trade ins, with the vast majority of trade ins going to auction.

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