used car price so high

[hattaresguy]

You can still find good deals on high end cars used.

A 2-3 year old S550 is just about half price of a new example. On none luxury cars the depreciation is less attractive.

 

[KB2008X]

Originally Posted By: threeputtpar
Originally Posted By: ram_man
So in a bloated market how do you guys decide what to pay for a car. Since kbb seems to be consistently pretty low.


ram-man, I found your problem. KBB is the last place for useful information for buying a car. They are usually 30% or more over reality on used car prices, in my experience. My theory is that they use asking prices to come up with their values instead of actual sales prices.

They are only relevant when you are selling a car, and only if your buyer doesn't know how useless they really are.


The only price guide I use are the yellow NADA price guides. I've rarely ever seen them for sale at a retail store. They come out 3 or 4 times a year and prices are adjusted for the various regions of the USA. The ones that you see at the grocery store, like the Consumer's Guide, really aren't any help and the same for the KBB website.

Even the NADA guides, that I have faith in, are only so good. And as always, it comes down to your ability to recognize a good deal or a bad deal, and your negotiating skills.

 

[javacontour]

When you go from selling 17 million new vehicles a year to around 9 or 10 million, there will be fewer used cars on the market. Folks are not trading or selling their used cars, so the price of used cars will go up.

C4C didn't have anything near the impact of the slowdown in new car sales.


Originally Posted By: DC44
Originally Posted By: mrsilv04
The Cash for Clunkers program started it...


Why do people blame cash for clunkers as the cause of the price rise in the used car market. I would say the top ten cars traded in on cash for clunkers were not cars that were purchased in huge numbers in the used car market. I would say it has more to do with the economy and reliability of cars now. 100k in not high mileage anymore. A new car will cost 25-30k financed. They can charge 15k for a car that should be 12k in reality. People will buy because they can't afford the cost of a new car but need something halfway reliable. For the most par America is a very car dependent country. You just can do to well without one.

I feel sorry for the people that are in bad financial situations now because the are stuck in positions were the have to pick their poison and are forced to make not so great financial decisions. Do I purchase a car I can barely afford but it reliable or do I buy a beater. I don't have the money to purchase a car for cash, let alone have the time to save for it because I really need a car. If I choose a beater, will I have to: throw money at it, play 'when are you going to screw me', possibly miss work, loose money, put my job in jeopardy and be back were I started.

 

[ram_man]

Cureous on cars like this what would be reasonable in this market to pay.
02 accord ex 153,000 timing belt done tires 85% asking 4900

to me thats a lot but I wanted perspective
ive also seen some tauruses for sale between 3000 and 5000

 

[johnachak]

[/quote]
Which is the wallstreet & government's grand scheme to get everybody on the hook with a loan. C4C helped fuel the lease market and force more people into long term car loans and mortgages. 50-year mortgages are growing in the housing sector because average joe can't compete with cash investors from wall street buying city blocks of foreclosed homes. More and more people are taking 60+month car loans to buy an entry-level car, and I'm one of them. Indentured servitude - to keep the poor, poor by strapping them with long term loans[/conspiracy rant] [/quote]

A 5 year loan on a new car that nowadays lasts 10-15 years isn't so bad. My last 2 new cars were purchased with 5 year loans with 0% financing and both cars are going strong. One is a 2006 and one a 2009. The old days when you took a 4 or 5 year loan on a car thar barely made it 5-6 years and 100,000 miles was a different story.

 

[johnachak]

Lets not forget how many perfectly good cars were ruined in hurricanes, Katrina, Irene and Sandy (Ok, super storm). There are practically no older used cars around here anymore. Just those brought in from other states / areas.

 

[johnachak]

The 133% increase in car prices in 30 years sounds about right to me. I bought my first new car, a 1986 Caprice Classic, not fully loaded but not the base model either. I paid ~$13,000. The same type of well appointed family car is ~$25-30,000. My 1977 Caprice Classic which I got used had a sticker in the owners manual and it was $11,000. It was more fully loaded actually.

 

[grampi]

Originally Posted By: KB2008X
Originally Posted By: threeputtpar
Originally Posted By: ram_man
So in a bloated market how do you guys decide what to pay for a car. Since kbb seems to be consistently pretty low.


ram-man, I found your problem. KBB is the last place for useful information for buying a car. They are usually 30% or more over reality on used car prices, in my experience. My theory is that they use asking prices to come up with their values instead of actual sales prices.

They are only relevant when you are selling a car, and only if your buyer doesn't know how useless they really are.


The only price guide I use are the yellow NADA price guides. I've rarely ever seen them for sale at a retail store. They come out 3 or 4 times a year and prices are adjusted for the various regions of the USA. The ones that you see at the grocery store, like the Consumer's Guide, really aren't any help and the same for the KBB website.

Even the NADA guides, that I have faith in, are only so good. And as always, it comes down to your ability to recognize a good deal or a bad deal, and your negotiating skills.


I think both NADA and Edmunds are better than KBB...

 

[ram_man]

Kbb seems to be quite a bit lower than nada and edmunds .

 

[friendly_jacek]

Originally Posted By: ram_man
Kbb seems to be quite a bit lower than nada and edmunds .


This is what I noticed as well, in some cars at least. Another thing I noticed, Banks+Insurance tend to go with NADA, while private sellers with KBB. The TMV is somewhere in between.

 

[friendly_jacek]

Originally Posted By: johnachak
The 133% increase in car prices in 30 years sounds about right to me. I bought my first new car, a 1986 Caprice Classic, not fully loaded but not the base model either. I paid ~$13,000. The same type of well appointed family car is ~$25-30,000. My 1977 Caprice Classic which I got used had a sticker in the owners manual and it was $11,000. It was more fully loaded actually.


Good luck convincing the government.

Quote:
According to the Consumer Price Index (CPI), the cost of a new car has increased by 46 percent since 1983.

 

[PandaBear]

Originally Posted By: Wolf359
Many people seem to think cash for clunkers lead to an increase in the price of used cars. There's no real reports out there that really support that position. In reality when you go from making 17 million cars a year down to 11 or 12 million cars a year. Basically in 2005, 17.4 million cars were sold in the US, in 2006 - 17, 2007 - 16.4, 2008 - 13.5, 2009 - 10.6, 2010 - 11.8, 2011 - 13. So from 2007-2011, about 19.1 million less cars were sold. Versus 680k cars that were crushed in cash for clunkers. That decrease is probably 96% of the reason why the price of used cars are high, not that much supply. And also why market prices for good used cars are high, they just didn't make that many of them. Also with a value up to $4500, those were NOT good used cars. Don't forget that Hurricane Sandy alone destroyed 250k cars, and that was all types.


Shhh, people wants to blame the government for everything, don't [censored] them off.