My truck is worth more today then when I bought it 4 years ago... Crazy that automobiles are now an appreciating asset...
Are you accounting for inflation?
Used car market gets even more bizarre
121–130 of 340 posts
Re: Used car market gets even more bizarre
#122My 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…
My car isn't dead yet, but it's around the time I would look at buying another used car. I bought a used motorcycle instead and am splitting miles.
Re: Used car market gets even more bizarre
#123So is this a good time to sell my car if I don't really use it or should I hold onto it?
For sure. My 2010 used Acura has never been valued so high even though I am not looking to sell.
Re: Used car market gets even more bizarre
#124Earlier quoted context omitted.
Stop buying shitty GM's. I learned my lesson back in in the late 90's when I couldn't keep a GMC Sonoma running long enough to sell it (was like 3 years old). In 2000 I became part of the Toyota family (worked for FORD at the time) and never bought anything else since. The 2 Toyota and 1 Lexus we own are between 14-11 years old and look and run like they came off the assembly line yesterday (all 3 were bought used).…
Lifetime TCO is a thing. If you bought a Bubble Taurus in '99 and fed it a new transmission every 100k you'd probably come out the same after adjusting for inflation between then and now. I deal exclusively in shitboxes that are about 10yr beyond what the demographics most represented. Anyone peddling a "just buy a particular brand and you'll be all set" narrative is just wrong. If you said "be rich enough to do main…
Funnily enough, my first car was a used grandma '99 Taurus. I sold it to a family member, and it's still driving.
Re: Used car market gets even more bizarre
#125Earlier quoted context omitted.
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…
>Mechanics are about to make a killing. If you're a mechanic and already have plenty of business, I imagine it's a tough call: do you jack up your hourly rates and take advantage of the windfall, at the risk of customer loyalty in the future? This insanity will pass, after all.
It's not just inflated labor pricing. Customers are willing to make more extensive repairs because it's more economical than buying a replacement.
Re: Used car market gets even more bizarre
#126Earlier quoted context omitted.
How can you honestly "charge off" a debt as unlikely to be repaid, when you are quite likely to be repaid? It seems that in the case of a car loan you can usually reposses the collateral, which recently will have held value oreven appreciated in the interim.
Historically, car values underwent significant depreciation over time and loans that went delinquent were for vehicles that were "underwater"- their value was less than the loan. Its pretty much unprecedented for the value of a vehicle to actually increase at any point in time over its life, and how long this anomaly will go on for is very uncertain- another way to put it is that you don't change all of your process…
> you don't change all of your process and accounting norms because of a temporary (at least as we think for now) supply issue
Is this why some people stick insist on making payments by sending cheques through the post?
Re: Used car market gets even more bizarre
#127Recently had a car totaled. Blue book was about 19k private party sale in excellent condition. Insurance gave me $27k.
So yes it’s nuts.
Re: Used car market gets even more bizarre
#128All I can offer is an anecdote. I have a 2015 Mazda 3 (top trim level, with 34,000 miles on it.) Purchased 4.5 years ago with 8k on it for just under $20k. Well over a year ago, I started checking KBB.com values to either trade it in or sell it. Back then, trade was close to $12k, and private party was a bit over $13k. I've checked several times since then, and the price has basically grown and grown. As of today, it…
You are in a good position to wait for a sweet private party deal. I'm not sure if you will ever get KBB at a dealer but many private buyers will use it as a reference point so you should be able to get close to that asking as long as you have assessed its condition properly.
Re: Used car market gets even more bizarre
#129Earlier quoted context omitted.
>Mechanics are about to make a killing. If you're a mechanic and already have plenty of business, I imagine it's a tough call: do you jack up your hourly rates and take advantage of the windfall, at the risk of customer loyalty in the future? This insanity will pass, after all.
Will the insanity pass, though? There's talk of putting cameras in all cars starting in 2026 to prevent... drunk driving[1]?! What's next? I can't be alone in never buying a car that has this feature. [1] https://www.latimes.com/world-nation/story/2021-11-09/congre...
I still won't even buy a car with GPS. Seems I'm in a vanishing minority. It won't pass, because people born after 1990 have spent their adult lives in a world with surveillance machines in their pockets at all times. Their cars are just big phones. By 2040 you probably won't even be allowed to drive your own vehicle.
Re: Used car market gets even more bizarre
#130What would it look like if asset speculation hit the used car market? Would it look much different than this? Normally that would be a poor investment because same-car prices steadily trend downward. But if the market changed such that used car prices were increasing - say, due to a shortage of new car availability - then would some investors be inclined to start hoarding used cars?
If prices are increasing faster than the maintenance that is needed :)
Hoarding used cars for a slightly long time will have them deteriorate somewhat. Some will have small issues, some might have bigger. Theoretical value might be higher, but when selling time comes the practical value might be a disappointment. Getting them ready for sale will have costs.
Car dealers just go for fast profit, like they always did.