Asking Price Vs. Book Price

[USMC6217]

Its been a while since I've posted on here. I've been looking all over for another LGT but something I have been noticing is the asking prices for some of these are ridiculous. My last one was totaled out but I was lucky enough that the valued price was right at what I paid for it. Book value for an 08-09 Spec B with over 100K is at best 11,500. I've seen a lot ads selling these for upwards of 16K from private sellers. If a car was totaled that I paid 16K for was valued at 11,500 I would be beyond pissed. Am I missing something in the 8 months I've been out of my Subaru?

[dgoodhue]

I just looked up a 2009 Spec.b on NADA. They have it for $17K dealer retail, $13K dealer trade in. Ultimately a book doesn't buy car, it really comes down to what you are willing to pay and seller is willing to sell the car for.

[USMC6217]

I wonder why there is such a difference between the online NADA and the black book used at a dealership. Im in way trying to stoke a fire, a persons sale is a persons sale. Just a general question

[GEE-OTTO]

Its been a while since I've posted on here. I've been looking all over for another LGT but something I have been noticing is the asking prices for some of these are ridiculous. My last one was totaled out but I was lucky enough that the valued price was right at what I paid for it. Book value for an 08-09 Spec B with over 100K is at best 11,500. I've seen a lot ads selling these for upwards of 16K from private sellers. If a car was totaled that I paid 16K for was valued at 11,500 I would be beyond pissed. Am I missing something in the 8 months I've been out of my Subaru?

 

Regional demand also affects the price, for instance there is one of the rarest 4th Gen Legacys ever produced (RRP 09 LGT Spec.B all stock clean carfax) for sale on CO for nearly $19K with ~96K miles on the clock.

 

 

Here in VA Legacys arent the apple of the buyers eye like in CO and PNW where the WRX for sale is either a grenade or snatched up quickly. So prices tend to fall as the period for sale extends, I sold my LGT for $14K with 91k miles.

[DrD123]

Well - keep in mind that the book values are the average of some set of sales, or estimated based on sales of comparable vehicles - so if different places use different methods to get book value, that is one reason there could be a spread. I did a quick search for a 2009 GT spec B with 125k miles on it and got quite a spread -

NADA - clean retail $16,300

KBB - private sale, excellent condition $9,495

Edmunds - outstanding condition $12,716 dealer retail and $10,899 private sale

 

cars.com shows a similar spread - for GT spec B's

19,995 - 2008 w/92k miles

19,000 - 2008 w/73k miles

18,499 - 2009 w/96k miles

15,995 - 2008 w/53k miles

13,500 - 2008 w/130k miles

12,000 - 2008 w/104k miles

 

then there are a large number of other legacies (2.5i, mostly) at $8-10k. But those are asking prices, not getting prices - so assuming $1-2k for negotiation, it looks like NADA is in-line with what folks are asking on cars.com, and the others seem to be based on a regular Legacy without really adjusting it up that much.

 

In your scenario of a car getting totaled, you would be stuck arguing with the insurance company - if you can show valid data indicating what the car is worth, they should move (I had a similar situation for my previous car, and got them to move quite a bit by providing listings at local dealer lots)

[USMC6217]

Not going to lie, im in the middle of doing that same research. Thanks for all the actual constructive input. After I posted I could have sworn I was going to get flamed.

[GEE-OTTO]

Not going to lie, im in the middle of doing that same research. Thanks for all the actual constructive input. After I posted I could have sworn I was going to get flamed.

 

Haaaa you are 100% correct with your original point if a person has $19K to spend on a car it is NOT advisable to spend it on a 8.5 year old turbo Subaru.

[dgoodhue]

BTW you can also insure your car for a stated value. I have done it with one of my vehicle and my boat where the traditional book values do not match reality or what I paid. In my case it raise my $1000 insurance policy about $100 year for my vehicle.

[USMC6217]

Haaaa you are 100% correct with your original point if a person has $19K to spend on a car it is NOT advisable to spend it on a 8.5 year old turbo Subaru.

 

That is my point. I get it that its super rare, but come on now. Case in point, I had a deal worked out with a dealer a few months back and said deal was broken when he was able to sell it at his asking price, I of course understood and was completely fine with it. What really got me is that same person is trying to turn around and sell the car for $3K more than it was bought for. Their sale is their sale though, if they can sell it for that then they came out on top ya know.

[jonnyt88]

 

In your scenario of a car getting totaled, you would be stuck arguing with the insurance company - if you can show valid data indicating what the car is worth, they should move (I had a similar situation for my previous car, and got them to move quite a bit by providing listings at local dealer lots)

 

 

Most reputable banks now offer Gap Insurance. Baically if your car gets totalled and insurance gives you $15k and your loan is for $20k, the bank will eat the $5k.

 

Its nice especially with new cars where once you register it, the value drops a fair amount.

 

Mine cost me about $150 on a $14k loan and they roll it into the loan payments. Totally worth it

 

 

But yes, 08/09 Spec.Bs have crazy asking price.

[FLlegacy]

You shouldn't need gap insurance to cover a loan for a car that is at market value, the Spec B is not a honda accord or toyota camry. As Dr pointed out, insurance in most states is required to make you whole. In the case of a car with a lower book value than market value, the market value will win out if you are persistent.