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Old 10-21-2018, 09:17 PM   #1
XDCX
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Default How accurate is Manheim's MMR as it relates to a vehicle's ACV?

I was at a Manheim auction in Las Vegas a week or two ago and there was a vehicle that was on the block and the bidding had stalled at $11,000 or so.

The auctioneer was pushing to raise the bid and commented something to the effect of "Hey guys, this vehicle's $1,500 back of MMR and you all know if you're using MMR to value your cars you're...."

Before he could finish his thought someone raised their hand to bid on the vehicle and they dropped the hammer and sold the car.

To the extent the auctioneer was working for Manheim I'm guessing he was going to say that MMR undervalues vehicles making the vehicle he had on the block look like an even better deal. That said, maybe he was going to say the exact opposite.

Based on your experience, how accurate is Manheim's MMR as it relates to a vehicle's Actual Cash Value (ACV)?
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Old 11-15-2018, 04:21 PM   #2
79LilRedExpress
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The problem with MMR as I see it is that it takes in account all sales, including on-line internet bids.
That said, I'll explain.
In the days before the internet, a dealer was barred from the "live" auction if ever caught bringing a retail customer to the sale to buy them a vehicle.
Fast forward now to today...
I could take you into my office, show you a car pre-sale, agree on a mark-up for profit and get your high water mark on what you want to spend.
That all sounds great, right? We got a retail sale, the customer got what he wanted at a price that he wanted to pay, the seller at the auction sold the car... all good ! EXCEPT... the MMR is now tainted by this ( and many more) retail sales.

One man's opinion.... What's yours ?
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Old 11-15-2018, 09:36 PM   #3
DealerEx
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That's an excellent point LilRed ! I've watched online bidders at the live auctions that just kept bidding past any point someone standing there looking at the car would consider. Often times the live bidders drop out at about the same time and 2 or 3 online bidders keep going and pay $1500-2000 more for it than anyone on site would.
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Old 11-16-2018, 09:04 AM   #4
steve_biegler
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Red is right! As usual. The business isn't what it was and I doubt it ever will be again. I sure miss the old days.
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