Posted on 07/10/2009 8:29:16 PM PDT by MeneMeneTekelUpharsin
In the process of searching for a used car for my children to use to go to school and get to work (summer jobs), I have made a couple of significant discoveries. Many used cars are selling for way below book value because there is no book value due to the incentives for buying new cars and economic conditions. Few banks will give loans on a used car at this time. Many, many used cars are for sale and remain for sale for quite some time. Cars that should have elevated used values are selling for well below "usual" values.
Does anyone have any other information to add to this per your area? One fellow (Hispanic with accent - recent immigrant) told me tonight on the phone (and he sounded sincere) that they were going to have to sell one of their cars because they were in dire need of money due to economic distress. I have not encountered that type of situation before. He opened up to me and revealed that because I speak Spanish. Nevertheless, I am seeing signs of severe economic duress affecting things like never before.
Yeah, I bought a one year old Chevy van for 65% off the MSRP. We are very happy with it. But around here used car prices have gone up in the 6 months since, maybe as much as 20%. However, they are still depressed from a year ago.
don’t worry when the $4500 old clunker program gets started the prices will take it into account. Probably not a good thing for very many though.
There are still a lot of people upside down in their vehicles due to low resale values and economic problems of their own. I know of lots of folks who took equity out of their homes to buy new cars a few years ago, Theyve lost their homes and can’t sell their vehicles for what they owe.
I don’t need to replace my ‘07 Chevy 4x4 crewcab pickup, but a few months ago, I took it to a dealer who had huge discounts on new trucks........ It was a good thing I don’t need a new truck cuz they weren’t gonna give me squat for mine.
No worries. In Cuba, the used car market went wild when socialism kicked in and is going strong to this day.
...is the cash-for-clunker program up and running now?....has anybody heard......I’ve heard the dealers don’t want to do the paperwork....I got a clunker and am considering replacing it....any info is appreciated.
Limited supply of both used and new cars here.
Not the case in Texas. Used cars are at premium, no one is buying new. At the auto auction not one bid for a bunch of brand new cars off floor plans. Cars bought 6 months ago are going up in value. Strange.
Things will be much worse by 2012. Expect the worst. You won’t be disappointed. The only silver lining will be the terrible political price the Left will pay for their stupity in winning the recent elections. “Be careful what you ask for: You may get it” applies with full force to the Socialists, for once,
What happens when the government screws with the free market.
I don’t think its running yet... I think Texas had its own program at one point...
.....the other thing I’ve heard is that state sales tax(6.75%for me)is a federal tax deduction....that, along with cash-for-clunkers money could help me decide if I want to go thru the hell of the new car buying experiance.
AutoExtremist is noting the same thing - http://www.autoextremist.com/on-the-table1/
“
The Great Used Car Boom of 2012. It is coming, the numbers make it a certainty. Consider that U.S. new car sales are expected to be in the region of 9.5 million this year and are projected to be 10 to 11 million units next year. In addition, 12.5 million units have been coming off the road by various means consistently for the past several years. DMV data estimates that approximately three million new driver’s licenses are issued annually. The average car on U.S. roads is 9.4 years old. You see where this is going: Pent-up demand is at an all-time high, while supply is shrinking. But wait, there’s more! New vehicle prices are poised for a big increase. Recently mandated emissions and MPG standards are soon to add $1300 to the cost of a new vehicle according to the manufacturers, although some other estimates are much higher. The bankruptcy of two-thirds of the domestic industry has accelerated the loss of capacity, even while import manufacturers have been shuttering plants. Although excess capacity still exists, it is likely to be largely absorbed by the expected rebound in sales the next couple years. The inevitable result is something the car companies haven’t had in a long time: Pricing Power. So now we have painted a picture where demand is mushrooming, prices are skyrocketing, and the days of “any warm body qualifies” financing and sub-vented leases are pipe dreams of the past. So what choice does the beleaguered American consumer have? Buy used! Signs of this trend have already begun to appear. Although YTD new cars are off by 41%, used cars are up by 3%. Compounding the imbalance of supply and demand is a shortage of used cars, due in large part to a lack of trade-ins. Future supply is due to further constrict as the number of off-lease cars begins to dwindle. Rental car companies are also extending the useful life of their fleets almost exponentially. By 2012 we can look back on this market as the “good ol’ days” when by comparison used cars were bargain priced. What does all of this portend for the dealers? The consumer? Insightful consumers should view the November-December-January time period as a buying opportunity. Historically, the used car market weakens at the end of the calendar year as demand softens and a flurry of trades come in on the new models. I anticipate this year should be no exception, but do not expect prices to approach the depressed levels of last year. Most late-model cars are now worth at least the same and in many cases significantly more than what they sold for last winter. By next spring the used car market will be gathering momentum like a runaway train, and if you haven’t bought your ticket your chances for a good buy will be rapidly vanishing. The opportunities for inexpensive auto ownership (little depreciation) will be great, particularly in the luxury segment. Focus should be on cars that will be in shortest supply in the coming years. Generally this would include later model, lower mileage cars of current body styles, ideally with a least one and at most two years of depreciation realized. I’ll have more next time...”
They check to see if the car was in an accident and thoroughly inspect it.
Cars today log information like overrevving and abuse in their computers, so that’s easily enough checked.
In the Dallas area used car prices are up. But that can change any moment.
I have a 1996 Accord I plan to get 3000 for. I think I’ll get it.
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