Why old cars so expensive now

[440Magnum]

Originally Posted By: friendly_jacek
Originally Posted By: M1Accord
people are taking advantage of others by jacking up the price of older vehicles


Nope, the supply and demand thing. Consider the supply constrained when huge numbers of "clunkers" were destroyed recently.

There are always unintended consequences.


I hadn't thought of that, but its probably a big part of it. I was horrified at how many historically reliable and inexpensive vehicles like Cherokees fell within the parameters of that asinine law and got destroyed.

But more than that, the demand for used cars has increased since fewer people have been buying new cars the last few years. The good news is how much new-car sales have ticked up in the last two months. Chrysler is WAY up, but when you start in the basement its easier to show big gains. I also read that VW just had their best month since 1973!

 

[Benzadmiral]

I keep waiting for a used Buick LaCrosse (2nd generation) or Regal to drop below $20K. From the looks of things it may be a long wait. Buicks used to drop in resale value a lot (my Park Avenue, a $30-35K car in 2003, went for $13K in '07). Not so much any more.

 

[Mr Nice]

With the average new vehicle approx $30,000 I don't see how people in America can go out and buy new cars as if they are buying a new toaster oven.

There is nothing wrong with buying a $10,000 car that will not impress the neighbors.

 

[DemoFly]

Originally Posted By: LT4 Vette

It funny to see people on Craigslist asking $4000 for a Honda with 200k miles.

The part that I find funny is about 50% of the cars are

"rebuilt with 80k, no papers but runs good".

"Just put a new engine in it, engine cost $2300! Asking $2500!

All the rebuilt or swapped engines are always 50k or 80k. It's the magic number to make up.

 

[eljefino]

Originally Posted By: LT4 Vette
I don't think the average vehicle is 11+ years old, I'm sure the auto industry is saying that to get people into their dealerships.



It probably is if you count all the 40 year old antique registrations that only go out 500 miles a year as "on the road". We have TV ads that claim that "96% of (brand x) made within the last 10 years are still on the road" which to me says there's a sharp dropoff after year 11.

If you did the math for average age per mile driven, to reflect all the priussii and taxis with 90k miles and 2 years of age, it would come in newer than 11 years. Also if you did median age instead of average it would show newer.

 

[eljefino]

Originally Posted By: friendly_jacek
Originally Posted By: M1Accord
people are taking advantage of others by jacking up the price of older vehicles


Nope, the supply and demand thing. Consider the supply constrained when huge numbers of "clunkers" were destroyed recently.

There are always unintended consequences.


The consequences were intended. New car sales being those consequences. There was just a lag.

 

[rjundi]

Originally Posted By: LT4 Vette
I don't think the average vehicle is 11+ years old, I'm sure the auto industry is saying that to get people into their dealerships.

But I agree that it is smart to just pay off your car and keep it 200k miles or more than get bitten by the new car bug every 3 years. Our old 1998 Civic EX had 200K miles when I gave it to my nephew as a high school graduation present.
It funny to see people on Craigslist asking $4000 for a Honda with 200k miles.




When car market was more reasonable(2004) I asked $4000 for a good exterior/interior condition 225k Civic and got an offer of $2900 and sold. Honda gets a premium.

Amazing considering I purchased that Civic EX for $10k a year used with approx 12k miles on it.

 

[MarkM66]

Originally Posted By: DemoFly
Originally Posted By: LT4 Vette

It funny to see people on Craigslist asking $4000 for a Honda with 200k miles.

The part that I find funny is about 50% of the cars are

"rebuilt with 80k, no papers but runs good".

"Just put a new engine in it, engine cost $2300! Asking $2500!

All the rebuilt or swapped engines are always 50k or 80k. It's the magic number to make up.


I've noticed that too. A lot of cars on craigslist with rebuilt engines. And cars with mileage that the original engine could of easily attained. Must be lack of care, so the rest of the car has been neglected too.

I've also seen a lot of ads stating, "moving soon, must sell." Are those scams or are that many people really moving, and can't take their car?

 

[rjundi]

I think people cling to cash for clunkers being the culprit. It did not help however the HUGE drop in auto sales made the real impact. The vast majority of those crushed cars were near or at end of life especially by now.



16.15 million light vehicles in 2007
16.56 million in 2006.
13.3 million in 2008
10.8 million in 2009

The regular supply is roughly 9 million cars short for 2008 & 2009 compared to 2006 & 2007.

No one is ripping you off. Supply is very short. Very simple economics.

 

[DemoFly]

Originally Posted By: MarkM66
Originally Posted By: DemoFly
Originally Posted By: LT4 Vette

It funny to see people on Craigslist asking $4000 for a Honda with 200k miles.

The part that I find funny is about 50% of the cars are

"rebuilt with 80k, no papers but runs good".

"Just put a new engine in it, engine cost $2300! Asking $2500!

All the rebuilt or swapped engines are always 50k or 80k. It's the magic number to make up.


I've noticed that too. A lot of cars on craigslist with rebuilt engines. And cars with mileage that the original engine could of easily attained. Must be lack of care, so the rest of the car has been neglected too.

I've also seen a lot of ads stating, "moving soon, must sell." Are those scams or are that many people really moving, and can't take their car?

Wife says too many toys!

Was son/daughter, now off to college.

This is the best car I have ever had and has been the most reliable vehicle I have ever owned too. Must sell I bought a new car.

 

[bretfraz]

Originally Posted By: rjundi
I think people cling to cash for clunkers being the culprit. It did not help however the HUGE drop in auto sales made the real impact. The vast majority of those crushed cars were near or at end of life especially by now.



16.15 million light vehicles in 2007
16.56 million in 2006.
13.3 million in 2008
10.8 million in 2009

The regular supply is roughly 9 million cars short for 2008 & 2009 compared to 2006 & 2007.

No one is ripping you off. Supply is very short. Very simple economics.



Exactly right.

C4C was a long time ago and whatever market impact it had has long since dissipated.

Every used car on the market was a new car once. If the number of new car sales drop, the availability of used will too. The number of car buyers does not seem to be dropping, so something has to give. What gives is price. It's the free market in operation.

 

[tonycarguy]

As others pointed out, US auto sales dropped off a cliff during the recession, so now there's a shortage of 3-4 year old used cars. It's not a recent thing; I've noticed inflated used car prices since late 2010 or early 2011.

Cars of our era are just too reliable. Cars from the late 90s could go 100k before a major tune-up; their engines and transmissions can last 200k miles. Basically, if the car doesn't rust out or get totaled in an accident, then it'll last 15-20 years. When people replaced a car every 4-6 years, it wasn't because the car died, it was because those people's needs or desires changed. Due to the economy, people have re-prioritized their needs and desires.

 

[wtd]

My newest vehicle is my 2004 Monte Carlo SS with 98,000 miles on it. My daily driver is a 92 cavalier with 175,830 miles on it that gets 30mpg. My 98 chevy 1 ton 4x4 has 104,000 miles on it and my 98 chevy 1/2 ton 4x4 has 121,000 miles on it. My 70 Monte carlo is a toy and doesn't really count. All of my vehicles are in good mechanical shape and should last many more years.

Unless I get the new car itch, I plan on driving what I have. My last new vehicle was my 98 1/2 ton so it's been awhile since I've bought new. Cars are just too expensive these days and I can't get myself to spend that kind of money anymore or have payments.

 

[daves87rs]

And it's only going to get worse.


Rumors have been floating around that the next updated Cruze (due in 2014) is going to start at nearly 22k for the base model (currently 17095)

Never thought I'd see a compact car start at 20k...

 

[eljefino]

Originally Posted By: DemoFly

Wife says too many toys!

Was son/daughter, now off to college.

This is the best car I have ever had and has been the most reliable vehicle I have ever owned too. Must sell I bought a new car.


You're hitting too close to home!

I also use

I like it but it's a pain to move the car seats in and out. (I leave the car seats in for the demo to "prove" it's reliable enough to drive kids around in.)

I'd keep it if it were an automatic.
I'd keep it if it were a stick shift.
Everything works but the AC, and I need AC b/c my kids don't like the windows down. It probably just needs a charge.*
I got it for my brother in law but he's too cool to drive it. He's an idiot you know. It's all tuned up and everything he'd rather waste gas in his crown vic. This car is way better on gas.
Yeah I drive it every day, it's for sale you know and I want to get the most out of it. I'm mad b/c I just put gas in it and now I'm getting all these phone calls and emails, I should have priced it higher I guess.
I don't know much about cars

I work at a TV station. I like keeping my equipment in good shape. Look how tidily I landscape my lawn.

*I don't actually use this one: too shady. "Yeah I tried charging it but the can wouldn't empty."

 

[andyd]

CFC was awhile ago, granted, but scrap steel was 230$ a ton last summer. My fleet consists of 2 25 yr old BMWs and a rusty 94 Ranger. If I didn't maintain them myself, they would cost too much to own. I doubt a 3K$ car would not have issues over a yrs time.

 

[fdcg27]

As others have noted, it's just a matter of supply and demand.
C4C did take some decent cars out of service, and sharply lower sales rates since 2008 have reduced the supply of late model used cars, while continued economic uncertainty has stayed many from replacing their existing car, which could have been a new used car for you.
Another source of good late model used cars was the lease market, but it is only a fraction of what it used to be, after too many lessors got burned on residual value starting in '08.
As the supply of good used cars drops, their prices have risen.
Simple as that.

 

[jimmy87]

[censored] I'm having trouble trying to sell my 04 impala, it has 108,000 miles, fires right up! I'm only asking for 2800, really just want to get rid of it. Only thing wrong with it is the paint. Are impalas that bad?

 

[eljefino]

Originally Posted By: jimmy87
[censored] I'm having trouble trying to sell my 04 impala, it has 108,000 miles, fires right up! I'm only asking for 2800, really just want to get rid of it. Only thing wrong with it is the paint. Are impalas that bad?


No but if Consumer reports muddies the waters by mixing the 3.4s and 3.8s together, all impalas will suffer from the 3.4s rep.

I'm looking for a lesabre of about y2k vintage, waiting for the price to drop though. MIL has one and it's a very nice car and the Impala's its cousin. I think I represent a lot of people with cash on the sidelines, waiting for prices to drop on my next used car. (Like homeowners waiting to sell houses when prices rise to their former, possibly artificial values.) Nothing's moving... so the market's stagnant and the economy isn't bubbling along.