How did you acquire the two Ford Mavericks referenced here?
Saved up cash, not paying intrest. Its not cash that I can keep tied up in a depreciating assets
MMR is 21 on this car. It costs a dealer to buy it out + recon + tires and brakes + cert. Nobody will pay more than 18-19 for this car.
Canât argue MMR, I donât have access to it. Above is a screenshot from black book which, allegedly, sources information from both the wholesale auctions and private transactions (and updates weekly), hence multiple columns and two charts. You can contact publisher, BB, and let them know your thoughts.
On a separate note: isnât MMR a statistical average of what dealers pay for a car at Manheim auction? If so, this (21K) must be a wholesale price of cars they must recondition and change brakes/tires (not necessarily certify, thatâs an option for dealer if they want to mark up the sales). Why do you think no one will pay more than 18-19 for it, if they already pay 21 according to MMR report?
Regardless, you will be engaging in what your religion defines as usury if you lease a car, just as if you were to finance a car. You can either refrain from both (if you have a strong belief that itâs a sin for which Allah will punish you), or you can chose the most useful option for you, lease or finance.
Mmr is a representation of what a dealer that wants to purchase a vehicle to resell has paid. Most dealers buying trades are planning on wholesaling the vehicle, so they need to have margin to sell at auction and come out ahead.
I donât have access to MMR, but do you know how it compares to Carmax offers***? Is Carmax offer lower than MMR, or is it on par with MMR, since both sell/buy at wholesale?
***I understand that you need specific vin and each car is unique, therefore asking about statistical averages. If you run 100 cars through MMR and then through Carmax, how will one compare to another?
I have had carmax offers above mmr and i have had carmax offers well below mmr. I wouldnt expect the average to be significantly different.
Except you are. You may not realize it but you are. Most people donât realize it either.
The loss of positive equity is a risk. How many posts have we seen the last 3 years that said the car was totaled before I could monetize the equity?
Just because the downside risk has a backstop doesnât change that the upside risk is yours.
I thought so. Thank you for confirming.
As to dealers offering under MMR (or Carmax in my case), I had this issue with my GLC when I was considering a trade for new GLE or Macan. Many dealers tried to lowball me and pay me 2K-5K less than wholesale (as mentioned, in my case Carmax was used as reference) value for GLC, justifying it by their cost to recon , change tires/breaks, put it on sale as CPO. In my opinion, although thatâs good thing for a dealer to do, it is absolutely unjustified under existing market conditions. Therefore, I never traded my cars for below wholesale (or Carmax offer, which usually matched my payoff quote) to any dealer. But, I also have to say that my cars were in outstanding condition, with the exception of Jetta that truly needed replacement of the back rotors and break pads, though it still was in pristine cosmetic condition with engine/transmission and computer all intact. I understand how this may not work if you trade to brand name dealer a high mileage/older car that he knows he canât recon and resell on his lot, but will have to send to Manheim to get rid of (and pay transportation and costs related to listing it as is). So, it must be situational and depend on individual circumstances. But I would definitely try my best to get the wholesale value if I was to trade my car and not give it up for anything less than that.
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