The concept of "market" is an interesting one. Market Makers do exactly that with all kinds of things. Coins, stocks, almost anything tangible. However, these guys make money on the "spread" which is the difference between the buying price and the selling price. I know a market maker in the rare coin business and he knows what any coin will bring or if he doesn't he had a reference book that is a pretty close representation of the value. This guy buys and sells every day. He does not have an inventory and if he can't sell quickly he will shy away from the purchase.

I can visualize a "market maker" in rare motor homes. Barth, Hawkins, Airstreams and others that are no longer produced would make up his sales vehicles. He could do quite well in this market since there are lots of folks interested in these rigs. The problem would be the "spread". Let's say that the broker would be happy with a $1,500 to $2,000 difference and wanted to have a maximum wait of 30 days. I think if he could buy a 16 year old Barth for 10-15% or the original price and turn it quickly he could make his target. But where can he find such a vehicle? Most 16 year old MHs have an asking price of 25% of the original price or $25,000. (Or they are in need of lots of work just to make them not sellable.) Add the profit for the market maker and you're up to $27,000. Since time is the enemy of the market maker he would not buy/consign this rig since he would have to wait too long for his investment to return his meager profit.

I live in a rural subdivision where there are a few homes for sale. We have one neighbor who has his house on the market for $1.9 million. The place has been listed for over 2 years now. This is in a place where the average price is around $500,000. I learned long ago if you want to sell real estate you find the most experienced real estate agent in your area and have her give you a "market appraisal" for your place. You can usually sell your place for within 5% of her estimate. Double her price and you will probably still own the place when the foundation crumbles.

I really like the idea of a person who would be interested in making a market of these rigs and would consider doing it myself. This person would become the "expert" as far as prices were concerned and would be able to tell you what you could expect to realize and in what time frame. Even if the market maker could just break even he would be doing a service in that sellers could get rid of their rigs and buyers could be happy with a purchase that they could use and enjoy.

I guess NADA started out with this sort of goal. If they report actual transactions and not just dealer supplied information they might be more realistic. But, even on this forum, one never knows what was the actual selling price. It is still one buyer and one seller agreeing on a price.

Don

quote:

Originally posted by Cantrade:
The concept of "market" is an interesting one. Market Makers do exactly that with all kinds of things.

It is still one buyer and one seller agreeing on a price.

You could always put it on Ebay with a starting price of $1 dollar!!! It is an adrenalin rush.

Buying and Selling on Ebay.

The next vehicle that's going [sic] buy, buy is a 2002 Chevy Suburban... I will do the exact same thing again.

That is the best way to find the value of anything. No false starting bids or secret reserves--just let the market determine the worth. With the number of watchers on eBay your item bids will float to the highest level by the end of the 7 day auction.

Also, lots of special interest sites like this one have folks who check the auction everyday and notify the forums of any new listings. The news spreads quickly.

Don

quote:

Originally posted by Cantrade:
That is the best way to find the value of anything.

No false starting bids or secret reserves--just let the market determine the worth.

Boy, did you hit a nerve there. I really hate the the false starting bids and secret reserves skew the market.

quote:

With the number of watchers on eBay your item bids will float to the highest level by the end of the 7 day auction.

Don

I agree with the logic of an auction deciding the market, but with one reservation.

That is that the buyer often is buying sight unseen, let alone a test drive. Speaking for myself, I regard many E bay purchases as a gamble, both on the quality of the merchandise as well as the integrity of the seller and the representation of the product. As such, I will only bid low. If I can see and test drive a MH, I would bid what I think it is worth to me, once I have developed a gut feel for it. My airline travel is almost free, so I have an advantage there. Our happiness with our particular Barth and our recent decline in assets has pretty much put me out of the shopping, though.

The value of any product is simply what the buyer is willing to pay for it. NADA or any other reference book is simply a guideline. No buyer equals no value.

Bill H,

I think most buyers of vehicles on eBay reserve the right of rejection upon inspection. I bought a Jeep Liberty after being outbid because the winner thought the car had a navigation system and it did not. The seller notified me and I got it.

The main value of eBay is massive exposure of your vehicle.

Don