Used Cars: KBB vs Edmunds TMV, 2008 hyundai sonata, kelly blue book

Question
Hello Roger,

I'm looking at a 2008 Hyundai Sonata at the following website  www.prescottbrothersford.com.  My car is on it's last leg so getting a vehicle soon is a must.  I have heard and seen great things about Hyundai's as of late and need something reliable and great on gas mileage.  They sent me a car fax and everything checked out.  It's about an hour and a half drive for me, but I'd like to test drive it today and hopefully negotiate online for the best price.  My question is the price they listed is about $500 below KBB but about $2000 higher than Edmunds TMV.  Is the TMV still used to negotiate?  If you have a chance to review the vehicle, does it sound like a good deal to you as stands?  I understand Dealers need to make money off buyers, but I don't want to be the one that pays too much so they can offer a harder sell down the road a better discount.  What other sites can I go to to see the actual price people should or are realistically paying for a vehicle.

Answer
Hi Brad,

OK here is the deal. You are correct about the popularity and reliability of Hyundais and in fact for the last 5 -6 years they have been really taking market share away from alot of the other auto makers. This car would would be an excellent choice.

As far as value...The popular choice in my part of the world as being the final word on a cars TMV is the MMR or Manheim Market Report... it's generally not accessible to the car buying public but gives me the actual auction sale prices for cars exactly like the one you are looking at in your part of the USA that occurred over the last 90 days. The actual Kelly Blue Book wholesale number (the book value dealers and banks use)for this car is $9.587.00 the MMR for this car in Wisconsin is $8,460.00 ...just for fun the Kelly retail value for this car is $11,537.00. Remember that the MMR value does not include auction buy fees and arbitration fees etc.

What does it mean...it means that you should pay no more than $9,900.00 for the car ... with $9,500 or less being a great buy and over $10,000.00 meaning you are paying too much. I would try to buy the car like this:

- Contact the dealership Internet Manager ...not 'one of the internet managers" nut the actual dept manager...this guy is the giveaway king of the store usually. Tell him that you live out of the area and would like to negotiate the deal with him on the phone / internet and if you can come to terms then you are prepared to give him a deposit to hold the car until you get there (in the next 5 days or less) and if the vehicle drives out and is otherwise as described then you will buy it. Then hit him with an offer like this ...

"The Manheim Market Report says this car sold at auction in the last 90 days for $8,460.00 after I add in buy fees etc. along with a dealer profit of 3-4% I come up with a total of $9,206.00 as being a fair price for both of us...but the car looks clean and the Kelly Blue Book wholesale value is $9,587.00 after a $600.00 mile add My offer is for $9,200.00 ... DONOT NEGOTIATE WITH NEGOTIATION SOFTWARE PROGRAMS ...deal with a live person ...if he says that the price is the price then move on and keep looking. I find some of the best buys I make on craigslist under the for sale by owner category ....ask any follow ups you want and I will give you the straight scoop ...my personal email is roadloans@gmail.com you can get to me quicker there


PS I would steer clear of NADA and Edmunds for what you are trying to accomplish