Cash value vs Trade Value - help me understand why there is a difference

[okie556]

I see a lot of ads across the ole interweb offering guns for sale that have a cash asking price and then "trade value" that is sometimes 20% more than the cash value.

I don't understand why there are two values associated with a single item.

We all know that if you trade cars at a dealership and they offer you $100 for you car, they've jacked the purchase price $75.
Why not just establish value and be done instead of playing what can appear to be shady games?

What am I missing?

On a local Face Book Gun for Trade or Sell Group, This seems to be the norm. XZY Pistol $600.00 cash, Trade Value $700.00. Seems dumb to me as well. I would simply ask list as FS or Trade $700. Then when someone starts offering cash I'd say $650.00 and then if that didn't work $600.00.

 

[TX69]

Sorry that may be of value to the criminal or the tin foil hat wearers, but that would be the very last "good" reason for a used price to be higher than a readily available new price IMO.

Mitchntx,
Could it be, and this is just a guess to answer your original question, cash vs. trade, the owners perception that a trader is coming to the table with a used item that he is probably going to be holding out for more than what he would take in cash for the item. So to even the playing field the owner has his trade price to open the door to better haggling... Just a guess, who knows what really goes through the minds of some people...

You'd be surprised how big those numbers are. I even looked into it a few years ago and still consider it an option. Paranoid? Just enough to spend a little more to stay off the grid.

 

[SR9TEX]

I assume any add posted with $500 cash price but trade value of say $600 was posted by some sort of asshole and I ignore the post.

I have always traded items for slightly less or equal to value to OP's item.

 

[Bithabus]

I assume any add posted with $500 cash price but trade value of say $600 was posted by some sort of asshole and I ignore the post.

This. Asking for more value in trade than you know the item should be worth means you are a sleazebag.

 

[mitchntx]

And here we go ... let the name-calling begin.
Nice constructive conversation while it lasted.

Some of just can't help yourself, can you.

 

[40Arpent]

I assume any add posted with $500 cash price but trade value of say $600 was posted by some sort of asshole and I ignore the post.

This. Asking for more value in trade than you know the item should be worth means you are a sleazebag.

So, hypothetically speaking, if I have a gun for sale that is worth $500, and I prefer a cash sale but would consider a trade....I am a sleazebag and/or asshole for stipulating an additional $100 in trade value to offset the fact that it's not the optimal transaction for me? And if there's someone willing to make the trade on those terms, am I still a sleazebag/asshole?

If either of you have a gun for sale valued at $500 and you get one $500 cash offer and one $600 cash offer at the same time, are you gonna take the $500 or the $600?

Where do y'all stand on free markets?

Same priniciples apply....

 

[mitchntx]

Where do y'all stand on free markets?

Same priniciples apply....

Free market is that you can ask whatever price you want. But that's not the point I was asking.

So in your mind's eye, compensation for inconvenience factors into the value or FMV of an item?

So two owners decide on trading, one having a $500 item valued at $600 trade to a person who claims his $500 item is worth $600 trade, this seems logical to you?

I have a $700 pistol and I'll take your $900 rifle as trade.
Assuming no ill-mannered means were intended by the end user, who in their right mind would make that deal?

 

[bullgator]

It's a wish list place to start out that is very subjective.

 

[benenglish]

If either of you have a gun for sale valued at $500 and you get one $500 cash offer and one $600 cash offer at the same time, are you gonna take the $500 or the $600?

It's not possible to receive the offers simultaneously. One will start speaking first or their email or other electronic communication will come in with an earlier timestamp.

You take whichever offer was received first. Of course.

Is there an alternative?

 

[SR9TEX]

So, hypothetically speaking, if I have a gun for sale that is worth $500, and I prefer a cash sale but would consider a trade....I am a sleazebag and/or $#@! for stipulating an additional $100 in trade value to offset the fact that it's not the optimal transaction for me? And if there's someone willing to make the trade on those terms, am I still a sleazebag/$#@!?

If either of you have a gun for sale valued at $500 and you get one $500 cash offer and one $600 cash offer at the same time, are you gonna take the $500 or the $600?

Where do y'all stand on free markets?

Same priniciples apply....

Normally if you had initially listed your gun for $500 I would assume you would take maybe $450-460 cash to sell it. Depending on type of gun or if listing said $500 firm vs $500obo.
Maybe maybe not but most things are put up for sale with negotiations in mind. Or atleast anytime I have ever sold an item the buyer normally asks for a better price.Or ask how low i can go etc etc.Then in turn making your $500 gun or $600 trade value a $100-150 gap.

Maybe the same principals would apply if said principles made sense.

Your last comment makes no sense. If you have a gun listed for $500 I can see a offer of $450-500 being typical.
Never $600.

If your offended because your one of them guys I'm sorry. Not trying to ruffle anyone's feathers. Just giving my honest opinion.

 

[SR9TEX]

In any trade situation I have ever been apart of the person with the less valued item would put up cash to make up the difference. Thought that's how its always been.

 

[Dawico]

I always expect a higher trade value than cash price and here is why. Most people hold their items at a higher value than what they are really worth. Example: I buy a gun for $600 new and list it for $500 as used. Many people don't see it that way and want to trade me a gun they paid $500 for new (now used) straight up. It isn't the same value and they don't understand. Comparing new prices my gun is worth $100 more (given similiar conditions on the guns).

Also, if your item is worth $600 in trade you may only get $500 cash for it. There is a value difference there. Money talks.

 

[40Arpent]

It's not possible to receive the offers simultaneously. One will start speaking first or their email or other electronic communication will come in with an earlier timestamp.

You take whichever offer was received first. Of course.

Is there an alternative?

It was a hypothetical example, Ben. Do i need to make it an "OBO" deal to get my point across?

 

[40Arpent]

Free market is that you can ask whatever price you want. But that's not the point I was asking.

So in your mind's eye, compensation for inconvenience factors into the value or FMV of an item?

So two owners decide on trading, one having a $500 item valued at $600 trade to a person who claims his $500 item is worth $600 trade, this seems logical to you?

I have a $700 pistol and I'll take your $900 rifle as trade.
Assuming no ill-mannered means were intended by the end user, who in their right mind would make that deal?

The hundred dollar difference just grew a few percentage points in your last statement. LOL

Again, speaking hypothetically, there may be instances where the desire of the purchaser might be strong enough to warrant a $100 sacrifice to get the weapon offered for sale/trade. I could certainly see myself being that purchaser. Fair market value is what someone is willing to pay, and yes, there have been times when i paid a "convenience fee" to get what i want. And there are others like me in that regard.

 

[40Arpent]

Normally if you had initially listed your gun for $500 I would assume you would take maybe $450-460 cash to sell it. Depending on type of gun or if listing said $500 firm vs $500obo.
Maybe maybe not but most things are put up for sale with negotiations in mind. Or atleast anytime I have ever sold an item the buyer normally asks for a better price.Or ask how low i can go etc etc.Then in turn making your $500 gun or $600 trade value a $100-150 gap.

Maybe the same principals would apply if said principles made sense.

Your last comment makes no sense. If you have a gun listed for $500 I can see a offer of $450-500 being typical.
Never $600.

If your offended because your one of them guys I'm sorry. Not trying to ruffle anyone's feathers. Just giving my honest opinion.

My last comment makes a hell of a lot of sense if the weapon is one in high demand, and buyers are willing to pay, or trade at, a premium for it. And if accepting a premium, in an ethical manner, makes me an asshole in your book, then so be it, no offense whatsoever (I'm a little thicker-skinned than that...LOL).

 

[Younggun]

I'm surprised some are this upset over having a higher trade price, it makes perfect sense to me.

I can spend cash on anything I want, buy whatever gun I want in that price range or add a little more for what I really want.

A trade means you get that one particular gun (or other item), you lose options. The value of that Springfield may be $800 but I might not consider paying more than $600 for one.

I am making up for my perceived value of your trade by requesting a trade if slightly higher value. Then if I decide I really want something and need real cash for it I should be able to unload the less desirable trade item relatively quickly and still have the originally desired amount of cash.


I've honestly never questioned the concept.

 

[TreyG-20]

I'm surprised some are this upset over having a higher trade price, it makes perfect sense to me.

I can spend cash on anything I want, buy whatever gun I want in that price range or add a little more for what I really want.

A trade means you get that one particular gun (or other item), you lose options. The value of that Springfield may be $800 but I might not consider paying more than $600 for one.

I am making up for my perceived value of your trade by requesting a trade if slightly higher value. Then if I decide I really want something and need real cash for it I should be able to unload the less desirable trade item relatively quickly and still have the originally desired amount of cash.


I've honestly never questioned the concept.

this

 

[TreyG-20]

I always expect a higher trade value than cash price and here is why. Most people hold their items at a higher value than what they are really worth. Example: I buy a gun for $600 new and list it for $500 as used. Many people don't see it that way and want to trade me a gun they paid $500 for new (now used) straight up. It isn't the same value and they don't understand. Comparing new prices my gun is worth $100 more (given similiar conditions on the guns).

Also, if your item is worth $600 in trade you may only get $500 cash for it. There is a value difference there. Money talks.

and this

 

[TreyG-20]

Lets say I have an $800 (price from LGS or wherever) Springfield 1911 LNIB. I am Asking $650 cash or $750 trade value. Does this mean I am asking for to much? Chances are the trade will not be exactly what I want, but I may have interest so I make the trade anyway. Then later I see what I really want and can ask the $650 cash for something valued at $750 to buy what I really want.

 

[Bithabus]

Free market is that you can ask whatever price you want. But that's not the point I was asking.

So in your mind's eye, compensation for inconvenience factors into the value or FMV of an item?

So two owners decide on trading, one having a $500 item valued at $600 trade to a person who claims his $500 item is worth $600 trade, this seems logical to you?

I have a $700 pistol and I'll take your $900 rifle as trade.
Assuming no ill-mannered means were intended by the end user, who in their right mind would make that deal?

Stating outright in an ad that you intend to rip someone off makes you a sleazebag.