Posted on 08/18/2009 10:27:45 AM PDT by wrrock
Used Car Prices Up 30% as the government CARS program disrupts supply for used cars. Results: Poor people have trouble finding decent cars and the larger economy will suffer. Watch Video: http://www.cardealerreviews.org/?p=116466
(Excerpt) Read more at cardealerreviews.org ...
My 1999 Malibu is running fine after 214,000 miles. Now down to 25 mpg from an original 29.
This in the short term will drive used car prices down not up. Because buyers are removed from the used car market.
What I’ve seen is that it has taken the buyers out of the used car market with the CfC and new car dealer discounts. That said the used car dealers still have their money tied up at the higher prices they had paid for the vehicles with less buyers.
Fix it and bank the money for the next used car. When you drive off the dealer's lot you lose 15% or more on the value. That's why they recommend Gap Insurance to cover that 15% you lose.
I disagree. The used cars had to be destroyed. 250,000 used cars will not be on the market.
I have a car that I bought new 21 months ago. Trade in value is now 95% of my original cost.
5% loss in trade in value after 21 months.
They are destroying good cars and trucks. The stupid as a box of rocks lefties!
Oh yeah, have they (the dealers) have been PAID for the clunkers yet?
They can’t apply for the cash until the cars are destroyed, but no one I can find has received any cash.
I’m talking about the extra car you don’t know what to do with... and now... it’s worth more!
There is a difference in the short term effect and in the long term. The long term depends on market conditions, prices of new cars will be forced lower, no sales. India Mahinda Corporation says they will start selling a diesel pick up in the United States like the original Datsun for about 5500.00. It will kill ford and GM.http://www.mahindrana.com/
Out of all the cars traded in, its is said the about 450, 000 of them would of been resold as pre-owned. Resold to the working poor, and middle class who cant afford or do not want to be burdened by new car payments. With shrinking inventories, used car dealers are feeling the pain.
I think it depends upon the used car market one is addressing, late model, mid aged or older clunkers. Late model for sure is hurting because of the CfC deals. The buyers I’m familiar with looking for late models at auction are having a hard time finding vehicles that allow the dealer to make a profit. I know dealer sales are down but auction prices don’t reflect that just yet.
It won't be long before GM is back on it's feet and up to it's quality standards of the 1980's...
That will rock. Has it passed the regulatory hurdles in the US yet? It might get here in another five or six years.
I also have to admit my 21 month old car has depreciated 15% and not 5%. Just a stupid data error on my part.
2% of they payouts have been paid. The dealer I talked to was not going to destroy a single car until they received payment for the cars.
You made a better vehicle choice than I did three years ago. My 2007 Hyundai Entourage cost me $28,000 brand new. Today, the trade-in value is around $11,000. That's just over a 60% drop in value.
After driving it for 3 years, I can tell you that the drop in value is not without merit.
One of my H.S. buddy's parents had a really nice '69 Chevrolet Caprice Coupe, with the 300 HP 350 V-8, nice interior, etc.
Well, one or more of said parents decided that the '69 was getting long in the tooth, or used too much gas, so they bought a 1980 Citation and TRADED IN the '69.
Whoops.
My friend was beside himself. He still hasn't forgiven his parents.
I admitted up thread that I did my math wrong. 15% depreciation and not 5%. Been there and done that on the Hyundai trade in, not as bad as you have been hit.
I stated the obvious weeks ago!!
http://www.freerepublic.com/focus/f-news/2306386/posts
To: libstripper
Multiply this by thousands and the Government is really sticking it to lower income citizens by denying them reliable, inexpensive transportation.
“Even worse, the most valuable parts of the purchased vehicles, their engines and transmissions, are destroyed, eliminating an economical source of spare parts for other vehicles. This is the first time I’ve seen deliberate vandalism and wanton destruction of valuable resources that are particularly useful to low income people enshrined as national policy.”
Just think what these numb nutz are doing to used car prices out two or three years from now...taking almost a million used vehicles out service is bound to increase the prices of said vehicles out a few years from now. Who is that going to effect? 48 posted on Sunday, August 02, 2009 10:46:41 AM by mr_hammer (“Gold is the money of kings, silver is the money of gentlemen, debt is the money of slavery)
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