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Its looking even worse (Or better for a buyer) for electric cars. A cursory craigslist search shows a 2014 Fiat 500e for ~7.5k @33k miles and Nissan Leafs for as little as ~5k @42k miles. All with clean titles. A used Model S 60 (2013) can be found for ~40k @60k miles, which I think is good but not great, especially considering the quality issues early on. I'm waiting to pounce on 1st generation electric cars that wi…
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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?
Me, because it came with a 7 year warranty. The price was good and the dealer offers a shuttle to and from my work (or my home) when it is in for maintenance.
In the UK, many cars sold in the past few years are under a so-called Personal Contract Plan (PCP). These are basically sub-prime loans for cars where you lease the car for the difference between its purchase price and its projected depreciated value at the end of the term. https://www.theguardian.com/business/2017/jun/10/car-loans-p... One of the UK regulators recently warned about the exposure to these loans. "An i…
That’s probably less of a concern in the US, where the lenders have more experience with these things, although car sales (and leases) have also grown rapidly in recent years, so there is still something to worry about.
In both countries, as I understand it, it is the lender who loses out if the resale value is less than rejected. So at least individual car owners are somewhat protected, and the biggest risk might be having to return the car and not being able to get a new lease/PCP with attractive terms.
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.
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This is true, but the value of your car plays an important role in that expense. And expected depreciation is an important factor to consider when buying a car.
Not if you plan to run it to the ground. Then it's simply about upkeep until it dies.
Suckers! My car is already worthless.
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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.
CPO cars have a warranty, which sharply limits your downside risk. Buying a used car from a manufacturer is a much better deal than buying it from a third party.
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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?
Combination of really low interest rates on new cars, and used cars becoming more rare due to cash-for-clunkers and maybe other programs. I don't think is was the case that used cars were literally more expensive, just that with 0% financing everywhere vs paying cash for used, or vs used car loan rates, you were probably better off getting a new car.
Its looking even worse (Or better for a buyer) for electric cars. A cursory craigslist search shows a 2014 Fiat 500e for ~7.5k @33k miles and Nissan Leafs for as little as ~5k @42k miles. All with clean titles. A used Model S 60 (2013) can be found for ~40k @60k miles, which I think is good but not great, especially considering the quality issues early on. I'm waiting to pounce on 1st generation electric cars that wi…
Production of the Chevrolet Bolt has stopped due to lack of demand and bulging inventory, part of the overall problem discussed on this thread http://fortune.com/2017/07/17/gm-shutdown-chevy-bolt-supply/