Lariat trucker wrote:

I got so irritated today I called my Banker to see if he had any wisdom on the matter. He brought up a point that I hadn't considered. He said alot of times Banks need to hold recovered collateral and assgn a value that makes their loan loss ratio look good. As long as it's an asset with a value they assign the loss from the sale isn't charged off against their bottom line. If BOA has say 100 "new" motorcoaches and they value them at $250K each instead of taking a $100K loss each their bottom line still looks decent. With the current unrest in the financial market maybe someone up the ladder has set a disposal loss percentage that forces the person in charge of it to look like an idiot. Believe it or not that actually made some sense to me.

Lariat trucker wrote:

I got so irritated today I called my Banker to see if he had any wisdom on the matter. He brought up a point that I hadn't considered. He said alot of times Banks need to hold recovered collateral and assgn a value that makes their loan loss ratio look good. As long as it's an asset with a value they assign the loss from the sale isn't charged off against their bottom line. If BOA has say 100 "new" motorcoaches and they value them at $250K each instead of taking a $100K loss each their bottom line still looks decent. With the current unrest in the financial market maybe someone up the ladder has set a disposal loss percentage that forces the person in charge of it to look like an idiot. Believe it or not that actually made some sense to me.

BWhite wrote:

Offer 75K . Be ready to buy

Lariat trucker wrote:

In the end "what it's worth" is what someone will pay. At some point they (the bank) will have to balance an offer against continuing depreciation on the unit.

JALLEN4 wrote:

Another factor not taken into consideration here is that there are actually three parties involved in this transaction. The bank selling the unit, the person making the offer, and the dealer who it was repossessed from. The bank liquidating the inventory has a fiducial responsibility to sell the unit in a responsible manner at current market value if they have any intention to pursue a deficit balance from the original dealer. Most floor plan agreements require a personal signature from the dealer and subjects all their assets to possible recovery.

While all the folks on this Forum can guess at what they think the unit is worth, the numbers presented fall far short of any recognized value guides. The original dealer could easily claim error on the bank's part in their decision and void any further claims against assets. In many if not most cases, the dealer's personal assets are far greater than the assets contained within the dealership.