NO MARKET FOR USED CARS

Vanity | 10 January 2003

[MeneMeneTekelUpharsin]

I've noticed that a lot of used vehicles are for sale everywhere. A LOT of nicer later-model vehicles are for sale and they're not moving very fast. SUVs sitting there week after week are NOT selling. Cars are NOT selling. One used car lot near here put out some used Mercedes Benz cars for around $4000 apiece and then moved them off of the lot and now has put them back on the lot (hoping someone would think they sold, I guess). What's the situation elsewhere?

[per loin]

I'm waiting for Arianna and her friends to dump their hidden SUV's onto the market. That'll knock the prices down considerably.

[jz638]

Law of unintended consequences at work here.

Two years ago, in a response to slumping auto sales, the car companies started offering interest free financing. Three things happened: people bought more cars, people who would normally wait another year or two to replace their cars decided to take the trade in and the financing deal, and often the cars they bought were more "car" then they normally could afford.

As a result, the used car market is filled up with the trade-ins from those fantastic deals. People also normally in the market for used cars bought new cars last year to take advantage of the financing deal. The "upsizers" also possibly went a little crazy on the options when they got that great deal and don't have the money for a third car for junior to tool around in.

[Marysecretary]

Ours is a 1991 van and it's still running pretty well. We never buy new cars because they're too expensive. I don't mind an older car if it's been well cared for and not horrible on mileage.

[SauronOfMordor]

I have a Dodge conversion van. I've had it for 4 years no with no problems at all.

[mewzilla]

Not many people buying, but we've had a lot of layoffs around here. Used car prices should be good. There's a real glut of vehicles thanks to leased cars coming onto the market, cars wearing longer and better, and lots of trade-ins from folks taking advantage of low interest loans.

[mhking]

.DO NOT...I repeat DO NOT buy anything from Dodge/Chrysler/Plymouth.

Ironicly enough, my family has been a MoPar family dating back to the fifties. My grandfather has a Chrysler 300, my mom has a Concorde, my dad has a Dodge Dakota, my brother drives a Dodge Intrepid, my sister has a Dodge Neon, my wife and I both drive Jeeps.

Now don't get me wrong, I wouldn't be caught dead in a Voyager, and my dad couldn't get away from his Dodge Avenger fast enough; they're a waste of money, but overall, DaimlerChrysler makes some decent vehicles. No more lemons than the next guy...

[nothingnew]

Because of my government, I can only afford a muffler.

hahahaha

FMCDH

[Paleo Conservative]

Most late model used cars have higher payments than new cars. The interest rates for used cars are also generally higher than new. I was looking at used SUVs, but I can lease a new one for far less.

If you have enough cash to buy a used car without financing, the used car is cheaper.

[BrooklynGOP]

I am actually looking to buy a Nissan Maxima 2000.. Hoping to pay below $15k for one with leather/sunroof,etc.

[Remole]

It all depends on what used car you are talking about. Lots of 1992 Chevys in the used car lots. But if you are looking for a clean 1998 Honda Civic with low miles, you had better be patient. In a few years I will be looking for a good used car for my kids, and trust me there are only a few makes and models that I will consider. I wonder if there will be a market for used Hummers??

[KineticKitty]

I've often wondered if the 0% interest and 0% Down deals everyone seemed to be having on new cars, for the first half of 2002 (after 911, and for the rest of the year?), if that in itself was going to create flood the used cars that was going to make the used car market go soft.

[taxed2death]

The car dealers worst nightmare. A glut of recent lease turn-overs.....many of them clean cars with low miles. Their own greed bit them in the ass. A buddy of mine purchased a turned in leased Audi A4 with low miles for $5500.00 This car is clean, rattle free and will run another 100,000 miles without any major cash influx.

It's a buyers market out there.

[Blood of Tyrants]

That's great if you have the cash. However, if you buy a vehicle with no interest rate, make payments, and figure in the future value of your money, you are actually saving another 10 - 12% on the pirice of the car.

[Bloody Sam Roberts]

Are you anywhere near Northbridge? (Whitinsville)

My brother runs the service dept. at Harbro Motors. I bought my '95 Gr. Cherokee from them 3 yrs. ago and it is the best vehicle I've ever owned. I also bought my '89 Buick Regal Presidential from them. Paid $1900 for it. It now has 152,000 miles on it and runs like a top. They sell GOOD used autos. And the service dept. is 1st rate. Though I may be biased.

[Marysecretary]

Our first mini-van was a Chrysler and we had quite a few problems with it. The next one is a Plymouth voyager and we had problems at first but now it seems to be running pretty well (1991). There are problems with vans that cars don't have.

[koax]

even new cars.

today the los angeles times has an ad for a brand new nissan sentra for an unbelievable $7777.00. yes, it's the only one available, but it is a sign of the times.

what should we expect after general motors made no interest loans available? auto analysts predicted that american auto co's were eating into their 2003 sales; i.e., people that would have normally waited to purchase were buying in 2001 and 2002.

[Bloody Sam Roberts]

I wonder if there will be a market for used Hummers??

You'd have to ask Monica Lewinsky about that.

[Destructor]

"Why buy used when I can buy new with a $1000 rebate AND 0.9% interest for 60 months?"

Just wait 'til the Dealership slams you on the back end of that loan! Hope you read the fine print.

[genew]

What's the situation elsewhere?

Not bad here. I'm in the business. Freep mail me for more info.

[EggsAckley]

Max, funny you should say that. I'm seriously looking at the Town&Country LXi. The reason is that I want one with four wheel or all wheel drive, and no others have that.

My priorities are a sun/moon roof, 4 or all wd., seats that remove easily. So far, only the Chrysler meets those needs, but having suffered through nearly a decade with a quirky Dodge van, 20 years ago, I'm a little leary of the Chrysler.