Quote:
Originally Posted by Cincinnatus
They're irrelevant for those who don't have wholesale dealer credentials, and wholesale is at least in large measure driven by what the retail market will pay. No dealer bringing in a car for trade will offer a value in excess of what he thinks he can sell it for himself (read: retail street price drives the offer) or can flip it out to auction, and that's again derived by what retail prices command.
My point is that it's not the one-sided equation that you imply.
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Quote:
Originally Posted by thebmw
I think we are saying similar things. But it's the Chicken or the Egg. Retail does dictate demand, which leads to lower wholesale prices. It is impossible to track every retail purchase, but it is very easy to track a large quantity of wholesale purchases. So we can track what the actual retail price should be in real time and what the trends look like. We can also predict what the price should be next month and next year.
This is what Manheim MMR is for. KBB and Edmunds play off of Manheim to a certain extent (KBB seems to be months behind).
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you guys are saying the same thing, and they are related.
The way I view wholesale pricing is that is the lowest price a dealer will offer you on a trade. It is also the lowest price the dealer is willing to sell a preowned car to a retail customer. The auction is the "buyer of last resort".
So using wholesale is a great way to negotiate the best deal on a preowned car.