Another example of how still crazy high the used car market is- especially for cheap used cars

[GON]

I was tracking this 2004 Pontiac Vibe at auction for parts. 185k miles, from the rust belt, does start but undriveable (all that is required is the car moves an inch to be drivable). I was interested in the hood and front bumper.

This car sold for $800 at auction earlier this week. After auction fees, likely $1228 out the door. And that does not include delivery.

I would have guessed the car worth somewhere in the $200-300 range pre vid.......

If a live auction with a large buyer base is any indication, used car prices are still strong, especially for wrecks.... I suspect a new car may in fact be a better deal for some over a used car.

 

[b_b]

it was that way pre-covid for trucks, with the exception of 100k plus miles. cars are just now catching up. the issue is unchecked money printing and the increasingly stringent emission standards. The last admin was going to change the emission standards to lower the cost of vehicles, but the current admin changed back. I've seen estimates that emission standards are costing an additional 5k per vehicle. either way, there is a constant pressure to increase the price of vehicles.

 

[atikovi]

That's probably a $4000-$5,000 car in Africa after being fixed with $1/hour labor.

 

[GON]

it was that way pre-covid for trucks, with the exception of 100k plus miles. cars are just now catching up. the issue is unchecked money printing and the increasingly stringent emission standards. The last admin was going to change the emission standards to lower the cost of vehicles, but the current admin changed back. I've seen estimates that emission standards are costing an additional 5k per vehicle. either way, there is a constant pressure to increase the price of vehicles.

Maybe I am living in the past and have not come to grasp how the change in the value of the USD changes the price of most everything- even junk vehicles.

I look at this vehicle, almost 200k miles, likely very rust underneath, lots of money to fix the back because at a minimum quarter panel up to the roof has to be cut out and replaced- and think this is a $200-300 best case. Yet someone paid over $1200. Maybe a lot of other factors in play- possible as simple as not enough used cars to go around, even junk cars now become a valuable commodity....

Beats me.....

 

[demarpaint]

We used to say when I was selling cars, "There's an ass for every seat." That still holds true.

 

[zzyzzx]

Maybe I am living in the past and have not come to grasp how the change in the value of the USD changes the price of most everything- even junk vehicles.

Obligatory:

 

[GON]

We used to say when I was selling cars, "There's an ass for every seat." That still holds true.

That is a really good point.

 

[BMWTurboDzl]

. I've seen estimates that emission standards are costing an additional 5k per vehicle. either way, there is a constant pressure to increase the price of vehicles.

Maybe on a diesel.

 

[b_b]

Maybe on a diesel.

that's on the gasoline side too. they have to spend countless hours designing the combustion chamber as well as ignition timing both on the spark and injection side, now with the advent of direct injection its twice the work. diesel is probably more.

 

[BMWTurboDzl]

that's on the gasoline side too. they have to spend countless hours designing the combustion chamber as well as ignition timing both on the spark and injection side, now with the advent of direct injection its twice the work. diesel is probably more.

Direct injection has been around for over 20 years.

 

[Zee09]

I see no value in that car as far as refurbing... Nuts!

 

[wavinwayne]

I'm clueless about the auto auction scene. Who is the typical buyer for a car like this and how can the repair cost possibly make financial sense? Is it just for parts, like what OP was looking for? What am I missing?

 

[BMWTurboDzl]

I'm clueless about the auto auction scene. Who is the typical buyer for a car like this and how can the repair cost possibly make financial sense? Is it just for parts, like what OP was looking for? What am I missing?

See post #3 from @atikovi

 

[GON]

See post #3 from @atikovi

Post three may be accurate, but I am skeptical. Most exports of salvage vehicles are to avoid tariffs placed on new cars in a certain country, not because labor and parts may be significantly cheaper. The cheap labor and parts may be a significant benefit, but the center of gravity of importing salvage vehicles is the new car tariff avoidance. Only in the USA do we ignore that importing more than one exports is financial suicide over the long term of a nation.

In the case of post #3 scenario. Car is $1228 out the door, and pickup is required three days after auction, or storage fee of $35 per day imposed. Car is in Indianapolis, transport to a port has to be at least $800. The transporter of the vehicle has to have a special card to deliver to the port. The port only accepts cars during certain business days/ hours. Then shipping across the ocean, receiving at a overseas port, a lot of time and costs and logistics involved. Likely well over $3,000 before the vehicle lands at a shop in Eastern Europe, Africa, etc.

If the vehicle was in Miami, or a like port with high volume, lots of ways to cut the many shipping costs and fees. But that is not the case for a salvage Vibe in Indianapolis.

I doubt very much the Buyer for this Vibe was from overseas......

 

[BMWTurboDzl]

Post three may be accurate, but I am skeptical. Most exports of salvage vehicles are to avoid tariffs placed on new cars in a certain county, not because labor and parts may be significantly cheaper. The cheap labor and parts may be a significant benefit, but the center of gravity of importing salvage vehicles is the new car tariff avoidance. Only in the USA do we ignore that importing more than one exports is financial suicide over the long term of a nation.

In the case of post #3 scenario. Car is $1228 out the door, and pickup is required three days after auction, or storage fee of $35 per day imposed. Car is in Indianapolis, transport to a port has to be at least $800. The transporter of the vehicle has to have a special card to deliver to the port. The port only accepts cars during certain business days/ hours. Then shipping across the ocean, receiving at a overseas port, a lot of time and costs and logistics involved. Likely well over $3,000 before the vehicle lands at a shop in Eastern Europe, Africa, etc.

If the vehicle was in Miami, or a like port with high volume, lots of ways to cut the many shipping costs and fees. But that is not the case for a salvage Vibe in Indianapolis.

I doubt very much the Buyer for this Vibe was from overseas......

It may not apply for this vehicle in question but I was thinking in more general terms. A lot of cars end up in Africa from the US so the economics must make sense.

 

[Kira]

My money's on that Vibe's front end being transplanted onto a "texter's car".

This vehicle, in Matrix form, with a repaired front end, is the one I passed on and am still kicking myself over.

 

[joekingcorvette]

Used wrecks are still a good value in my area. We have a large repairable vehicles lot within 15 miles of where I live and they sell dozens of cars and trucks every week and there are some very good buys to be had. Some are sold the same day they arrive. Used sedans do not bring much where I live. This nice 2016 Chev Cruze is for sale by myself and I would take $8500.00. Not getting any bites at all and it's really nice and clean but has 118,000 miles.

 

[Vil_Riker]

It's an old rust bucket, highly unlikely there will be interest overseas. They normally go for higher end vehicles, or newer.

 

[goingplacesanddoingstuff]

Direct injection has been around for over 20 years.

FWIW, some WW2 fighter aircraft had direct injection. It ain’t new at all, just more challenging.

 

[billt460]

It's an old rust bucket,.....

Naw, THIS is a rust bucket.