used car price so high

[surfstar]

Be patient. Buy private.

A year ago we found a 2004 Elantra with less than 80k miles for $3700 for my mom.

18 months ago, I bought my 2000 Civic from the original owner for $2700 w/ 142k miles. They started off asking $3500 and its a rare HX model - I could sell it today for $3k easily.

2.5 yrs ago, I bought my 2005 Vue with 81k miles from the original owners for $6200. Comparable Rav4s and CRVs sell for double the price.

Shop smart.
Oh yeah, and these were all 'hard to find' manual trans cars. And located in pricey California.


Or lets rehash this same old thread again and again and...

 

[fdcg27]

In 2003, I bought a '97 Accord LX coupe stick with 64K for 6K.
We drove it another 140K and then sold it as a runner needing a few things, like its second timing belt service, a brake line and replacement of the leaky lower spark plug tube o-rings.
Things I really didn't feel like doing and the car owed me nothing at that point anyway.
American nameplates of similar vintage and miles were dirt cheap, as were some Lexus, Infiniti, BMW and Mercedes models.
Not so today.
There are great discounts on most new cars, so it can make a lot of sense to buy new.
My own experience has been that the lifetime costs aren't that much different between used and new and if you buy new, you get to use the car for the best part of its life with nothing more than oil changes, brakes and tires.
For the dedicated DIY guy, an old beater can be very practical and very cheap transportation.
Been there, done that.
For most people, who depend upon a shop to keep their cars functional, a new car makes economic sense if late model low miles used cars are priced as they are now.

 

[cptbarkey]

another factor of high prices has been credit, or lack thereof. dealers, and buy here pay here lots jack prices of your typical 2003 pontiac bonneville to about 30% over going prices. regardless that price trickles down.

the austin used market has been an interesting barometer in my world. i purchase/flip 2-3 cars a year as a hobby, and lately the selection has been pretty darn good, meaning used prices are being driven down.

the original OP sure did ignite a healthy debate, but i'm not seeing his observations.

 

[dareo]

Used cars are all about working hard (searching, inspecting, and haggling) and taking risks. The more work you do and the more risks you take the less you pay. If you don't want to do that work and take those risks, show up to Carmax and write the check.

Any dealer is going to squeeze every dollar they can out of a buyer, so the more people willing to buy those old high mile cars at dealer lots the higher those prices will go.

I've always found great deals when i don't need to buy, and often when i'm actively looking for a vehicle that is when i can't find a good deal.

 

[ram_man]

Originally Posted By: silverrat
Originally Posted By: eljefino
Ram-man, didn't you sell a honda civic in preperation to buy something else? Are you surprised with how fast someone had decent (I assume) money for a clean car with a great name?


I would like to see this addressed. Maybe you sold your car too low


it actually sold for 500-700 above blue book. I compared it to other prices 8n similar vehicles, m I thought I took a fair price on it. I wasnt trying to screw someome or give it awaway.

 

[sciphi]

A lot of folks are stuck in the mindset that used "has to be" cheaper than new, so they won't even consider buying a new car. Prove to them that a new car just might be cheaper to own in 5 years if they're financing, and they look at you like you're crazy. They mutter about "not wanting the depreciation hit", ignoring the crazy high used-car prices that these days minimize that hit.

Oh well, they're missing out on some good new-car deals, especially on compact and smaller cars.

 

[friendly_jacek]

Originally Posted By: sciphi

Oh well, they're missing out on some good new-car deals, especially on compact and smaller cars.


That may be true, but some people (teenagers) can't afford comprehensive insurance and need low cost cars with liability insurance only. Those are hard to find.

 

[friendly_jacek]

Originally Posted By: surfstar

Oh yeah, and these were all 'hard to find' manual trans cars. And located in pricey California.


In my market, manual tranny used cars sell for 1-2 grands cheaper.

 

[sciphi]

Originally Posted By: friendly_jacek
Originally Posted By: sciphi

Oh well, they're missing out on some good new-car deals, especially on compact and smaller cars.


That may be true, but some people (teenagers) can't afford comprehensive insurance and need low cost cars with liability insurance only. Those are hard to find.


If their parents are well-off enough to afford their teenage driver a 3rd car (and the insurance!!!) these days, they're ahead of most!

Give this time, and it will work itself out.

 

[KitaCam]

Originally Posted By: friendly_jacek
Originally Posted By: surfstar

Oh yeah, and these were all 'hard to find' manual trans cars. And located in pricey California.


In my market, manual tranny used cars sell for 1-2 grands cheaper.


In my market here in south Florida, a manual tranny stuck in KitaCamry made it the dog the dealer feared it'd be chained to forEVER, and IMMEDIATELY lowered their lowest of 3 different asking prices (cars.com vs. ebay and the window sticker) by $1k/15% to the trade-in value as a counter to my offer of 20% under their lowest price....

The reality is that when dealers buy a car in trade they start with trade-in value and subtract as much as they can ..."sir, your car WOULD be worth the full trade-in value if we didn't have to spend $X to prep it for sale."

Knowing that dealers may use the internet to sell cars at DIFFERENT prices (and knowing how to find them), and knowing how much the dealer chopped off from the previous owner's trade, buying a car at or close to its trade-in value isn't all that difficult...especially if it's the manual tranny...

 

[Silverado12]

I think the time of the year can be important too. I bought my Challenger in early February 2012, and I didn't see much activity at the dealership. I actually ended up with a better warranty (powertrain) than if I bought a new car. CPO used Chrysler is 7 years from the time it was first titled, and new is 5 years. So basically, now is a good time to buy around here.

 

[supton]

Originally Posted By: dareo
Used cars are all about working hard (searching, inspecting, and haggling) and taking risks. The more work you do and the more risks you take the less you pay. If you don't want to do that work and take those risks, show up to Carmax and write the check.

Any dealer is going to squeeze every dollar they can out of a buyer, so the more people willing to buy those old high mile cars at dealer lots the higher those prices will go.

I've always found great deals when i don't need to buy, and often when i'm actively looking for a vehicle that is when i can't find a good deal.


Who wants to take risks? Risk to me implies being willing to throw it out at a complete loss if it fails. And being content to do just that, if it doesn't pan out.

 

[eljefino]

Originally Posted By: supton


Who wants to take risks? Risk to me implies being willing to throw it out at a complete loss if it fails. And being content to do just that, if it doesn't pan out.


There are risks to new cars too. We don't know how they're going to break. With older stuff, someone's been there before you and done that, so the list of what stuff could is actually shorter, even as the risk of that gizmo failing rise.

I suppose this would be mitiaged by new car warranties with loaner cars; drop it off and forget about it while they figure it out eventually.

Similarly I'd be 10x as frosted with a $20k new lemon that looked good on paper as I would be with a $2k clunker I picked out myself. I'd achieve more inner peace blaming myself than I would playing lawyer and hunting down various parties trying to weasel out of fixing my car.

Just my POV.

 

[Norm Olt]

After much perusing I came to the conclusion that the ONLY used car (or truck) we ever purchased from a dealership was the 1971 (I think?) 145E Volvo we traded-in a 1965(?) 122S Volvo for...

Big mistake: should have kept the 122S and paid the $2,200 cash for the wagon. This was 1978, after all!

Everything else was new or from a private party.

Cheers!

 

[IndyIan]

Originally Posted By: Norm Olt
After much perusing I came to the conclusion that the ONLY used car (or truck) we ever purchased from a dealership was the 1971 (I think?) 145E Volvo we traded-in a 1965(?) 122S Volvo for...

Big mistake: should have kept the 122S and paid the $2,200 cash for the wagon. This was 1978, after all!

Everything else was new or from a private party.

Cheers!

I don't think we'll buy used from a dealer again either, they have to markup almost 100% on the cheap cars, and they toss any maintenance records.
I think private is the way to go if you have time. Kijiji up here has a better search system than most dedicated used car sites as well, so finding exactly what you want is fairly easy.
The exception is odd time I will see practically new cars at the dealership, for 15-20% less than new, lately I saw 100 mile 2013 Caravans for $17,500 when the new ones are $21,000, then I might buy a the used one over the new. $3-4K in my pocket is worth the additional risk for me atleast.

 

[SteveSRT8]

Originally Posted By: friendly_jacek
Originally Posted By: surfstar

Oh yeah, and these were all 'hard to find' manual trans cars. And located in pricey California.


In my market, manual tranny used cars sell for 1-2 grands cheaper.


For many decades we routinely DEDUCTED for a manual trans in almost anything.

 

[mjk]

Originally Posted By: ram_man
What is the reasoning behind 15 year old cars being 4000-5000 toyota camrys come to mind. Whats up with these used prices? Am I crazy or are the prices going up?


http://minneapolis.craigslist.org/dak/cto/4291715472.html


2000.00, by the time the average person takes it to a shop and puts struts and exhaust upgrades on it.

OP - I hear you regarding pricing. I am in the same boat. I will say this - it is also a seasonal thing. I am on CL almost daily, looking at vehicles. Now till mid-late March is a slow time, especially in the Upper Midwest.

It also drives me crazy when a seller does not list mileage (always high mileage vehicles, where seller is asking a premium). While mileage isn't everything, there is no possibility it is not going to be discussed. Why not be upfront?

 

[hattaresguy]

Two things are hurting the market:

1. New car sales tanked for years, CFC was a drop in the bucket compared to the millions of new cars that were not produced. If anything it was a helpful drop because it created a few more new car sales, which are now becoming used cars!

2. The buy here pay here car lots are overpaying at the auctions because they can make a ton of money on payment plans. All they want is a car that will last for 4 years of payments, they don't really care about what they pay.

As a result prices go up, but as new car sales and the economy continues to improve used car prices will come down again.

 

[dareo]

By risk in used cars, i mean something like a rebuilt title sold at a discount. A really high mileage clean car at a discount can be a risky endeavor.

There are less risky but higher priced cars, and lower priced cars with a "story" or two, that have higher risk of repairs.

Cars are always expensive, no matter how much you pay when you buy it.

 

[sciphi]

Originally Posted By: KitaCam

Knowing that dealers may use the internet to sell cars at DIFFERENT prices (and knowing how to find them), and knowing how much the dealer chopped off from the previous owner's trade, buying a car at or close to its trade-in value isn't all that difficult...especially if it's the manual tranny...


Same with new cars. If you wriggle like a well-informed buyer who knows exactly what they want and is willing to buy today if the price is right, you can get some good deals.

Although, for some folks, buying a 2-3 year old used luxury car instead of a new compact is appealing. They'd rather have the badge, and are willing to pay for it. If you don't need the attributes of a compact car like high MPG or small exterior footprint, I can see the appeal.