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A glut has used-car depreciation accelerating

bloomberg.com

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Re: A glut has used-car depreciation accelerating

#11

Post by sbierwagen »

MrFoof wrote: post #8
sbierwagen wrote: post #2

The average used car costs $15,300? That seems pretty wild. Are the classic Porsches that sell for $10 million dragging the average up?

What classic Porsche is selling for $30M? * Even Steve McQueen's 917K only sold for $14.08M the other day. * A 956 with five LeMans wins sold for $10.12M. * The L&M sponsored 917/10 sold for $5.83M. * A RS60 Spyder with an amazing pedigree sold for $5.40M. * Jerry Seinfeld's 550 Spyder sold for $5.33M. * Paul Newman's 935 sold for $4.84M. ... and the list falls from there. As usual, the most valuable Porsches have pe…

Amended.

Re: A glut has used-car depreciation accelerating

#12

Post by usaphp »

sbierwagen wrote: post #2

The average used car costs $15,300? That seems pretty wild. Are the classic Porsches that sell for $10 million dragging the average up?

The number of porshes that are being sold for $14 million is a drop in the sea compared to the whole used car industry

Re: A glut has used-car depreciation accelerating

#14

Post by unclebucknasty »

sbierwagen wrote: post #2

The average used car costs $15,300? That seems pretty wild. Are the classic Porsches that sell for $10 million dragging the average up?

It may be because there are more people who sell their cars newer than those who wait until they're older.

And from the article:

>increasing share of those sales came with a lease

So, those leases become late-model, low-mileage used cars for sale.

Re: A glut has used-car depreciation accelerating

#15

Post by copperx »

ng12 wrote: post #5

Actually it's not because I don't think about the value of my car. It's not an investment, it's an expense.

Pretty much everything is an expense, even mortgages, most of the time. The liberal use of the word "investment" in America is irksome. Marketing has hijacked our minds.

Re: A glut has used-car depreciation accelerating

#16

Post by copperx »

Glyptodon wrote: post #7

Thank the gods we're no longer in that weird bubble from a few years back where decent used cars were basically more expensive than new ones.

That doesn't even make sense, unless there are not enough cars being produced. The only situation I remember like that was with the Prius, when gas prices were $4/gal.

Re: A glut has used-car depreciation accelerating

#18

Post by hkmurakami »

Glyptodon wrote: post #7

Thank the gods we're no longer in that weird bubble from a few years back where decent used cars were basically more expensive than new ones.

Could you tell us more? Was this in some niche segments of discontinued but popular models (like certain Subarus) or were run of the mill cars also like this?

Re: A glut has used-car depreciation accelerating

#19

Post by aianus »

sbierwagen wrote: post #10
adventured wrote: post #3

Earlier quoted context omitted.

No, that's about right. Take some time and go through autotrader.com. $15k isn't unusual for a used mid-value sedan with ~25,000 to ~65,000 miles. For example, look up Hyundai Sonatas, 2013, with that mile load, you'll see prices around $14,000 to $18,000. Or check out Toyota Camrys, 2012 model year. You'll typically pay around $14,000 to $16,000 to get into one with 40,000 to 60,000 miles. So that's a 5+ year old ca…

I don't disagree that you can pay $15K for a used car, I doubt that the average price of a used car is $15K. The average price of the first 30 used cars for sale by owner on the Seattle craigslist is $5,896: https://seattle.craigslist.org/search/cto Average price of the first 30 by dealer however, is $21,567: https://seattle.craigslist.org/search/ctd But who would be dumb enough to buy a used car from a lot?

Why is it so dumb to buy a used car off the lot?

I bought an Audi off lease last year. It's still under warranty, free maintenance (until 80k km), low mileage (37k km), fully loaded with options, and I saved $20k vs a new one.

Re: A glut has used-car depreciation accelerating

#20

Post by adventured »

sbierwagen wrote: post #10
adventured wrote: post #3

Earlier quoted context omitted.

No, that's about right. Take some time and go through autotrader.com. $15k isn't unusual for a used mid-value sedan with ~25,000 to ~65,000 miles. For example, look up Hyundai Sonatas, 2013, with that mile load, you'll see prices around $14,000 to $18,000. Or check out Toyota Camrys, 2012 model year. You'll typically pay around $14,000 to $16,000 to get into one with 40,000 to 60,000 miles. So that's a 5+ year old ca…

I don't disagree that you can pay $15K for a used car, I doubt that the average price of a used car is $15K. The average price of the first 30 used cars for sale by owner on the Seattle craigslist is $5,896: https://seattle.craigslist.org/search/cto Average price of the first 30 by dealer however, is $21,567: https://seattle.craigslist.org/search/ctd But who would be dumb enough to buy a used car from a lot?

> But who would be dumb enough to buy a used car from a lot?

Tens of millions of people. It depends entirely on what you're buying. For example if you want to buy a certified pre-owned vehicle, you're frequently going to buy it off the lot from a dealership. The CPO programs from the major manufacturers are typically excellent. If you're buying a nice used car, with relatively low miles & a recent model year, it's more often dumb to go any other way than a reputable dealer + CPO.

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