Why are CAP values so low?

[James crossen]

Hi
Further to my opening email i have found a ready to rock cali. T6 ocean 204 dsg. Got finance quotes and happy with monthly payments. Put a deposit down. Went through credit check a breeze....but then ....they dont value the cali anywhere near the market price. Best i could get is 20% lower on valuation! Cap price apparrently. What planet are they on??? Anyone experience of this and any recommendations on finance?
Cheers

 

[GrannyJen]

Because they want to mitigate risk and make a profit. That is what insurance companies exist for.

 

[HectorPascal]

Hi
Further to my opening email i have found a ready to rock cali. T6 ocean 204 dsg. Got finance quotes and happy with monthly payments. Put a deposit down. Went through credit check a breeze....but then ....they dont value the cali anywhere near the market price. Best i could get is 20% lower on valuation! Cap price apparrently. What planet are they on??? Anyone experience of this and any recommendations on finance?
Cheers

CAP prices are based on auction ACTUAL prices paid and are a realistic real-time value. Glasses Guide, in comparison represented somewhat idealised prices in a perfect wold.
In fact 'CAP' is an acronym for Centralised Auction Prices'. If you are buying in the world of 'actual' values, there is only one guide to use. I speak as an ex-motor trader.
One problem I have with the Cali and MP is that the halo-effect of the lifestyle they offer, whilst real enough, distorts the values to rather silly levels very much to the manufacturer's advantage. Consider in the recent diesel factor (non-sensical for Euro-6 engines) and the daft re-sale values of these vans look dafter still.

 

[2into1]

CAP prices are based on auction ACTUAL prices paid and are a realistic real-time value. Glasses Guide, in comparison represented somewhat idealised prices in a perfect wold.
In fact 'CAP' is an acronym for Centralised Auction Prices'. If you are buying in the world of 'actual' values, there is only one guide to use. I speak as an ex-motor trader.
One problem I have with the Cali and MP is that the halo-effect of the lifestyle they offer, whilst real enough, distorts the values to rather silly levels very much to the manufacturer's advantage. Consider in the recent diesel factor (non-sensical for Euro-6 engines) and the daft re-sale values of these vans look dafter still.

I suspect not many Cali's (ie, very close to zero) go through auction, and the figures are therefore a computer driven guess, based on residuals of 'normal' vehicles.

 

[larrylamb]

I suspect not many Cali's (ie, very close to zero) go through auction, and the figures are therefore a computer driven guess, based on residuals of 'normal' vehicles.

Agreed, If they were going through the block regularly word would get round and then more buyers would descend pushing up the auction price IMO.