Used Car Market In Turmoil As Prices Collapse And Demand Wanes

[thescreensavers]

I'm looking to buy in the next few months but I might hold out longer though my current car will probably drop too

I have seen 8k+ price drops on used cars now too

 

[Exhaustgases]

What age of used cars are they talking about? You can run out and buy what you think is a great used car with say 160,000 on it and model year say 2010 for maybe 8 or 9k on some models. Then on day 3 when it doesn't start or shift, you find out you get to spend another 4 to 5K on it. I'm sure this is happening all the time. Even at half that price they are over priced.

 

[MSCH]

One of the constants in economics is the predictions of doom and gloom and economic ruin again and again and again.

as well as hopeless optimism.

 

[Sonny88]

You would think that with all the natural disasters, and influxes of new people coming across the border- there would be a high demand of used cars.

I suppose the economy is partly driven by consumer confidence…

 

[Sonny88]

Well, I can. They've never been a huge seller but their resale value was high. Not anymore. Part of the reason for the sales slump for new ones is the price drop on the used ones. I was originally intending to buy new until I saw the used prices dropping.

But there's also competition. Ford Ranger, new Tundra, and refreshed Colorado/Canyon. Plus Maverick and now other small light pickups are coming to market. It's getting crowded. I'd expect another round of rebates/incentives soon, and they'll be aggressive.

They still sold 14k in Q3. I'm sure they'd like to sell more, but they've got LOTS of room in that sticker price to pull back and still make money.

In 2021 I bought a Dodge, they had a Chrysler Capital special financing rate of 0% for 72 months.
I guess we may never see that for a long time

 

[350Rocket]

You forget to mention generally poor reviews on the Gladiator as well.

What does that have to do with the topic?

 

[CKN]

What does that have to do with the topic?

One poster mentioned using a Gladiator as an example of "softening vehicle prices". It was a poor example-there are several reasons why this particular vehicle's prices have softened. The current general overall market conditions have very little to do with it. Reread both of my posts above-for relationship to the topic.

 

[nickaluch]

The everything bubble.
We hit peak housing debt, commercial real estate debt, auto loan debt, credit card debt, mobile phone debt, refrigerator debt, microwave debt, couch debt, other furniture debt, you name it debt,. People are taking out loans for a big mac.
People have literally maxed out the credit market, and no amount of money printing will save us from what is coming.
The reason a lot of these predicted charts are always wrong, is because it takes a long time to reach the peak, and only one day for a crash.

Remind me in 12 months when cars have lost 30% of their value or more and housing has lost 60% and bank of america is receiving a 600 billion dollar bail out.

Better yet remind us in 12 months when non of the above happens

 

[RhondaHonda]

Well, I can. They've never been a huge seller but their resale value was high. Not anymore. Part of the reason for the sales slump for new ones is the price drop on the used ones. I was originally intending to buy new until I saw the used prices dropping.

But there's also competition. Ford Ranger, new Tundra, and refreshed Colorado/Canyon. Plus Maverick and now other small light pickups are coming to market. It's getting crowded. I'd expect another round of rebates/incentives soon, and they'll be aggressive.

They still sold 14k in Q3. I'm sure they'd like to sell more, but they've got LOTS of room in that sticker price to pull back and still make money.

What was new MSRP on yours, if you know, and what did you pay and how many miles?

 

[IndyFan]

One poster mentioned using a Gladiator as an example of "softening vehicle prices". It was a poor example-there are several reasons why this particular vehicle's prices have softened. The current general overall market conditions have very little to do with it. Reread both of my posts above-for relationship to the topic.

The current conditions have a lot to do with it. The pricing that I've seen mirrors what the OP says is happening.

 

[IndyFan]

What was new MSRP on yours, if you know, and what did you pay and how many miles?

34k miles, a 2021, $61k sticker, I paid $37k.

 

[joekingcorvette]

What exactly did you want for your used up econobox?

I thought it should bring $8000 but I ended up selling it for $6000. It was a really nice red limited with a very clean interior and nice factory alloy rims. I sold it for a relative in a nursing home and he just wanted it gone. Chevy Cruze's are not in high demand that's for sure! I didn't care it's SOLD!

 

[Dave Hess]

Repos are up and I don’t feel sorry for someone buying an expensive vehicle to look cool when a $7000 Corolla or Civic would suffice.

 

[CKN]

The current conditions have a lot to do with it. The pricing that I've seen mirrors what the OP says is happening.

We can agree to disagree.

 

[CKN]

Repos are up and I don’t feel sorry for someone buying an expensive vehicle to look cool when a $7000 Corolla or Civic would suffice.

It's like this......some people don't want to drive a penalty box. Life's too darn short-isn't it? You can make the payment until a life altering even happens. If something bad (financially) hasn't happen to you... that's great.

 

[JimPghPA]

Remember, that an economist is someone who can tell you tomorrow, why the things that they predicted yesterday didn't come true today.

 

[MCompact]

I mentiomed this in another thread, but I bought my last 2 vehicles for 25% and 20% off MSRP- both were one owner cars just off 24 month leases, and both had a full service history.
And I definitely underpriced the 1999 TJ Sahara I sold last month, I recieved dozens of replies within an hour of posting it on my FB page. Live and learn...

 

[gfh77665]

Media sensationalism at it's best to grab your attention for more $$

I know, I don't bite on click bait like so many do. Its a total garbage headline. The index is at 209...

 

[gfh77665]

The everything bubble.

and housing has lost 60% and bank of america is receiving a 600 billion dollar bail out.

Housing loses 60%?

LOL

 

[VTECOverRated]

I guess I'm missing the context of your statement, because 20% down is the equivalent of 72 monthly payments if broken down to 360 payments.

What is this math lol - 72 months into 360 payments what are you even on about...

You said : you don't need 20% down when you rent (unlike purchasing/financing a house).

I said its very similar because the vast majority of renters pay a 3 month deposit on a 12 month lease. That is 25% down. And I also stated that people can't even afford that!