A glut has used-car depreciation accelerating
bloomberg.com
A glut has used-car depreciation accelerating
1–10 of 376 posts
Re: A glut has used-car depreciation accelerating
#2The average used car costs $15,300? That seems pretty wild. Are the classic Porsches that sell for $10 million dragging the average up?
Re: A glut has used-car depreciation accelerating
#3The average used car costs $15,300? That seems pretty wild. Are the classic Porsches that sell for $10 million dragging the average up?
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 car, a mid-value sedan, with a fair bit of mileage.
The average new car price is around $32,000.
Re: A glut has used-car depreciation accelerating
#4The average used car costs $15,300? That seems pretty wild. Are the classic Porsches that sell for $10 million dragging the average up?
They might be measuring the "average used car", not the "average used car for sale." So immediately after you buy the car, it becomes a used car (or maybe a year after, not clear from the article).
Re: A glut has used-car depreciation accelerating
#5Actually it's not because I don't think about the value of my car. It's not an investment, it's an expense.
Re: A glut has used-car depreciation accelerating
#6Suckers! My car is already worthless.
Re: A glut has used-car depreciation accelerating
#7Thank 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.
Re: A glut has used-car depreciation accelerating
#8The 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 pedigree as winning race cars. Even the rarest road-going Porsches (959 Sports) I believe are all worth under $2M (save for wacky stuff like the flat-8 904), and only until recently (past 10-15 years) have Porsches really appreciated in value.
Re: A glut has used-car depreciation accelerating
#9Does it have something to do with QE?
Car leases commonly rely on some expected value at the end of the lease. Even when it is some relatively down played value then this information means that it would become even lower.
This should also then mean that the lease should become more expensive.
Eventually lack of information should cancel itself out.
Re: A glut has used-car depreciation accelerating
#10The average used car costs $15,300? That seems pretty wild. Are the classic Porsches that sell for $10 million dragging the average up?
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?