You've hit the nail on the head with that comment. Also it's often more like a 20%+ difference.
It goes like this. I guy has got a 1998 brand X & he wants to trade up to something newer, maybe even brand new.
He is offered a trade-in valuation of say $5,000 for his old girl, but has 2nd thoughts when he sees them on carsales & ebay for $$7,000 to $8,000, because that's the sticker price on Parramatta Rd. Never mind that the Parramatta Rd dealer, has to bring it up to scratch, warranty it, accept a trade-in loss & actually make a profit to pay his wages & overheads.
He then thinks "wait a minute, this dealer is ripping me off, it's worth more than $5,000". So he forgoes the trade-in & pays the dealer the full amount for the newer car, so for a short time he now owns 2 cars, while he attempts to sell his old one, for more than $5,000.
So, he advertises the old girl for $7,500 (ONO) & finds he gets virtually no response. He might actually ring one of the others advertised & ask them, "are you getting any response to your advert". Short answer is no ! Oh well, I'll reduce the price a bit & see how that goes, $7,000 = no response, 6,500 = no response, finally at $6,000 & he gets a few phone calls & after a few weeks of trying, a real person actually comes to look at the car. He walks around it, knocks the sh!t out of it & offers $5,000. He then says, "no way, too low, but I'll accept $5,500". so the looker walks away. After & few months & a few more knock-backs, the rego is running out & he's now got to get rid of it, regardless. The next looker offers $4,500, which he grabs with glee.
Moral of the story. Just because a car is advertised for $7,500, doesn't mean squat as to its real value.
Dr Terry






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