Who is buying vehicles?

Originally Posted by 53' Stude
Originally Posted by grampi
I figured with the lock down in place, and millions of people out of work, I thought I'd see the bottom drop out on vehicle prices, but it hasn't. What is keeping prices up?



My brothers friend is busy as ever selling used cars.


Ah, so your brother's friend is responsible for vehicle prices staying high?
 
I'm not actively in the market, but I'd be nervous about a dealer being extra slimy right now, trying to get rich off my deal since their sales are presumably down. I hate the whole process anyway, this situation isn't helping anything.
 
Originally Posted by nascarnation
I read an analysis on Bloomberg that said the auctions are shut down right now and most of the used market isn't really functioning.
They felt in 6 months used car prices will go down drastically as lease returns and car rental fleets swamp the auctions but demand is poor due to the economy.
One unknown will be if the govt rolls out a cash for clunkers 2.0 or something similar.
Delay is your friend here.
The best deals are probably late this calendar year.


That's actually better for us. We don't want to trade in our van until after I retire on May 31st. We need the van to move my stuff back home. After that, we can trade it in anytime...
 
My wife and I are in the market for a 2016-2018ish minivan to replace our Honda. We're seeing prices tick downward but not substantially. We are on pause for the moment in anticipation of prices trending downward.

We were also planning on purchasing a house, goal was a May 1st closing, but we put the brakes on that and negotiated a month to month lease on our current house. Same thing, waiting for prices to go down and looking for some clarity on this virus ordeal and economic conditions going forward...
 
We won't be trading for a new vehicle. I'm assuming the 0% financing deals are only for new vehicles, but I would think the interest rates for used cars has also come down. I wonder how low?
 
Dealers floor plan the car which means these cars are sitting on the lot and are accruing interest. They have to move them. If this shutdown goes on till mid May you will get great deals. My wife work at a dealership as a financial mgr before retiring. She shakes here head trying to figure how they will pay rent and floor plan interest.
 
Originally Posted by IMPALA08
Dealers floor plan the car which means these cars are sitting on the lot and are accruing interest. They have to move them. If this shutdown goes on till mid May you will get great deals. My wife work at a dealership as a financial mgr before retiring. She shakes here head trying to figure how they will pay rent and floor plan interest.


I'm not a business owner, and I have no idea what would work out best for these dealerships, but it seems to me those who lower prices enough to start moving some vehicles now will be better off in the long run than those who stand pat on their prices and then try to make up for it later. They're all going to make up for it when this is all over, as long that may take, however, those who are still making some money in the meantime would be better off...I would think anyway...
 
Wife may bite and trade the Crosstrek It's off warranty - but has a CVT extenion to 100K and a phoney "million mile " Engine warranty.

I'm seeing over three grand off many Subaru and the Jeep Renegade without negotiation. And low lending rates.

If you wait and walk into a hungry dealership just one day before the end of the month in the afternoon
I bet you would make out like a bandito.
 
Originally Posted by grampi
We won't be trading for a new vehicle. I'm assuming the 0% financing deals are only for new vehicles, but I would think the interest rates for used cars has also come down. I wonder how low?


Wonder? Check your local Credit Unions and lenders online, they should list the rates.

No "Wondering" needed
smile.gif


My wife's credit union has the following rates:

AUTO LOANS
Effective Date: Saturday, April 18th, 2020
Loan Type APR* as low as Loan Term in Months Monthly Payment per $1,000
Model Years 2020 - 2015

2.74% Up to 36 $28.97
2.74% 37 to 48 $22.02
2.74% 49 to 60 $17.85
2.99% 61 to 72 $15.19
2.99% 73 to 84 $13.21
*APR is Annual Percentage Rate. Offers are subject to change without prior notice. Additional rates and terms are available. Advertised rate(s) available on New & Used Vehicle Loans of Model Year 2015 or Newer with a maximum loan to value (LTV) of 100% or less. All advertised rate(s) include a rate discount of 0.25% for MVCU/BCU Free checking or Interest Checking Account Members.
 
This is the response I received with my latest offer yesterday from the sales manager:

"""""Eric,

I applaud your enthusiasm and attempt in trying to obtain the unobtainable deal. However I cannot do this price out the door. If you are serious about buying a Camry, our Internet Pricing is the most aggressive in the market. I'm sure that you have seen that in the research that you have been doing online with various dealerships.

I appreciate you Eric, your time and the opportunity to assist you in any reasonable way I can.""""

This response tells me I am pretty close.

I responded back to this:

"Okay, thanks for the help."

So now I will put this purchase completely out of my mind and see what transpires, or try to. I actually offered to go there today and take delivery Sunday. I will not go there until I know we are close as its a waste of valuable time for me.
 
When I worked at BMW we would sometimes take a skinny deal-or even a loss-if we needed to bump our sales numbers up to a point that would increase our allocation.
 
I bought one. Brand new 2020 Ford F-150. I was the only customer in the dealership on a Saturday. I was able to get a pretty decent discount coupled with 0% financing.
 
With the auto industry out of parts so to say
There will be much lower vehicle production numbers

Not sure if it will matter since no one is buying anyway but if they did there would quickly be a shortage

Where I work shortages are extending into July timeframe as an example
 
Manufacturer targets have been eased starting in March. Therefore, the last-day-of-the-month trick will not work for the time being.

In fact, Toyota eased year-end targets for March (their fiscal year-end) which meant dealers essentially coasted through march with no fire under their backside.
 
How about 84 months. No interest. You take that deal and you will be so upside down![/quote]
But then I can afford the payments on a car that I can't afford.
 
[/Quote]How about 84 months. No interest. You take that deal and you will be so upside down![/quote]
But then I can afford the payments on a car that I can't afford.
 
Just had this discussion over drinks Friday afternoon with a few like minded friends. Poked around on the interweb quite a bit looking at classic and collector cars, boats and planes...prices on what we looked at haven't changed significantly and we didn't see any screaming deals... Darn, but probably for the best
smile.gif
 
I personally know three people who bought new cars this weekend. One got a GMC Sierra 1500, one got a Chrysler Pacifica minivan and one got a VW Tiguan. So to me it seems like tons of people are buying new cars.
 
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