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Used car market gets even more bizarre

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Re: Used car market gets even more bizarre

#21

Post by lastofthemojito »

clavalle wrote: post #8
dlmiller wrote: post #2

My car died, needing a new engine, so I was forced to get one in October. I usually only buy used, but prices are so inflated it didn't seem worth the premium. Used 2017-2020 Toyota Rav4's with 30-60k miles were the same price as a new 2021 model, if you could get one. I knew it was bad, but I was shocked of how bad it was. I went to multiple mega dealerships with 500-1000 cars that were all spoken for. Most had 0 ne…

I was in the same boat. I usually avoid buying new but used cars are nearly the same price as new (if you can find a dealer that hasn't done ridiculous 'market adjustments'). So we bought new. We had to buy a car that was just off the delivery truck before the dealership had it inspected. The one we'd looked at two days before was long gone and they expected the one we bought to be sold the next day. My neighbor trad…

The narrative earlier in the pandemic was that the reduction in driving was brutal for mechanics as it meant a reduction in need for auto maintenance and repair. Fewer of us are staying at home these days, but it looks like we're still not quite back to pre-pandemic levels of driving[0].

I'd imagine it's probably a bit of a mixed bag for mechanics, depending on what sort of vehicles they specialize in, where they're located, etc.

0: https://fred.stlouisfed.org/series/M12MTVUSM227NFWA

Re: Used car market gets even more bizarre

#22

Post by post_break »

carabiner wrote: post #9
syshum wrote: post #3

My truck is worth more today then when I bought it 4 years ago... Crazy that automobiles are now an appreciating asset...

My truck, a 2015 Tacoma, is worth $4k less than what I bought it for 3 years ago. So totally normal depreciation in my case.

A tacoma is one of the few vehicles that don't depreciate. My 2017 Chevy colorado I just offloaded for 3k less than I paid essentially, that's crazy.

Re: Used car market gets even more bizarre

#26

Post by mytdi »

dlmiller wrote: post #10
Syonyk wrote: post #6

Earlier quoted context omitted.

At that point, why not just put a new (junkyard from a wrecked one) engine in?

$7,000 to put a new engine in a 2011 GMC Terrain that was worth maybe $8000. The engine was recalled by GM for excess oil consumption, my engine had the fixed installed and still died 30k miles later. I went with a new one because that particular vehicle ended up costing me more monthly than a car payment.

I think OP's advice is good, that's what I would do, but I think for this particular vehicle it's not a good idea to replace the engine with a used one from a junkyard, because they have a lot of engine problems and the replacement engine wouldn't last long either. A friend of mine found out the hard way. Other vehicles though, I think it would be worth it replacing the engine with a used one in good condition.

Re: Used car market gets even more bizarre

#27

Post by mrfusion »

speedgoose wrote: post #14
rupi wrote: post #12

Earlier quoted context omitted.

USA here - ordered a Tesla Model Y in July 2021. Estimated delivery was October 2021. A couple of weeks ago, that date changed to April 2022.

Yes the Tesla cars we can buy without too long wait are from the Chinese factory. I ordered my Model Y late August and got it beginning of September.

You can choose the factory?

Re: Used car market gets even more bizarre

#28

Post by mrfusion »

post_break wrote: post #22
carabiner wrote: post #9

Earlier quoted context omitted.

My truck, a 2015 Tacoma, is worth $4k less than what I bought it for 3 years ago. So totally normal depreciation in my case.

A tacoma is one of the few vehicles that don't depreciate. My 2017 Chevy colorado I just offloaded for 3k less than I paid essentially, that's crazy.

I wonder why their lease prices don’t reflect the low depreciation?

Re: Used car market gets even more bizarre

#29

Post by wpietri »

larrydag wrote: post #4

Here's the flip side of that from auto lenders. They are seeing a huge recovery benefit from repossession of vehicle after chargeoff. Lenders portfolios are seeing a net benefit in chargeoffs which has hardly ever happened in recent history. Even more bizarre. https://www.yahoo.com/now/ally-financial-ally-beats-q3-12451...

Wow, those are some terrible incentives. I've never had a loan, so maybe I misunderstand the experience. But I'd hate to owe money to somebody that is hoping I fail badly enough that they take my stuff and while keeping my money.
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