Difference Between Glasses/Red Book and Agreed Value

[csv8]

I got my insurance renewal for my BF Mk 2 GHIA and the agreed value for 2013/14 is $16500...yet when I enquired about trading in.. I was offered $8k !
Insurance companies must use different valuation to the books and dealers ???
I know I can get more selling more privately but thats a hassle. Does seem odd that insurance valuation is higher than the books????

[XR6T0Y]

Got my XR6 insured for 14k, dealer last year offered me 6.

[Sorted]

The books have retail values and trade in values
The dealer's go off the trade in value - insurances uses retail value
If you think the agreed value is too high call your insurer and ask them to reduce the agreed value

From experience in the trade when some people insure their cars the value of the car is always too high as they think high value equals high insurance premiums but when their car is a total loss their cars are now plated in gold.

Now before we get every one post up they insuree their cars to the maximum agreed value available take not I stated "some" people

Also Dealer's may think the same way as you do - it's a hassle to buy your car and get it rwc and ready for onsell so they give you a low ball figure

[happy1]

Hi, Only some insurers let you agree the value, and within some window they have.

Often the discount for lowering the value with several thousand only gives you a saving of less than $50 year. (what I experienced with SGIO).

Also keeping the value towards the higher end of the allowed window ensures that you can actually buy an identical replacement car for the amount paid out if it becomes write-off. (after excess is deducted, and various other things such as registration, accessories etc.)
Cheers,

[wrongwaynorris]

The Red Guide is out of date by the time it is printed , especially in a market like the one we have now . Two weeks ago I bought a 113,000 km one owner immaculate BA MkII XR6 Turbo auto in Blueprint with leather , premium sound and dual zone climate , stupid and horrible 20 inch wheels with cheap as ***** tyres , full service history and rego till November for $7,500.00 . In case its escaped peoples notice nobody wants large cars and subsequently their resale value has plummeted . We are buying good 2003 BA XT's at auction for under $ 4,000.00 .

Also to the OP what you get as a trade in valuation and what the market value is are two entirely different things . I know that most people on these forums seem to think a dealer should give you a retail value for a trade in but that is NOT the way it works , dealers are a business and have to make a margin to pay their overheads somehow .

[AU Mont]

im confused, so the thread is asking why a trade in at a dealer is so low?

[csv8]

No..why insurance companies and Glasses/Red Book all don't have the same valuations..Shouldn't they all be the same ?? Knowing insurance companies they will get out of paying more than they have too!!!

[GTpilot]

Originally Posted by wrongwaynorris

The Red Guide is out of date by the time it is printed , especially in a market like the one we have now . Two weeks ago I bought a 113,000 km one owner immaculate BA MkII XR6 Turbo auto in Blueprint with leather , premium sound and dual zone climate , stupid and horrible 20 inch wheels with cheap as ***** tyres , full service history and rego till November for $7,500.00 . In case its escaped peoples notice nobody wants large cars and subsequently their resale value has plummeted . We are buying good 2003 BA XT's at auction for under $ 4,000.00 .

Also to the OP what you get as a trade in valuation and what the market value is are two entirely different things . I know that most people on these forums seem to think a dealer should give you a retail value for a trade in but that is NOT the way it works , dealers are a business and have to make a margin to pay their overheads somehow .

Redbook values are updated daily. 99% of its subscribers use the online version. I'd say thats pretty upto date.

[Crazy Dazz]

An agreed value is exactly that. Within reason, insurance companies are happy for you to keep the agreed value high, because they charge a slightly higher premium, which equals greater profit. It’s all just maths to them. (it’s only once you go outside their statistical data that they get ansy.)

But even when they recommend a value (as “market value) it’s at the higher end, as it is designed to allow you to buy a replacement vehicle without too much hassle. This is significantly higher than wholesale value.

Most dealers will offer BELOW wholesale, because they need to make a profit at both ends, often different departments. In some cases, with bigger dealerships, you can be dealing with three different departments, and they all want to make a profit. The new car department wants to sell you a new car at a profit, the wholesale department valuing your trade wants to make a profit by either wholesaling your car or “selling” it to used cars, who want it cheap so they can make a profit. THEN you get handed to the Bling *****…