How crazy high the used car market is in even salvage vehicles

[GON]

I buy salvage S-class Mercedes from time to time as a hobby. The price at auction for these vehicles has been going up and up. It should be noted full size Mercedes sedans are super nice- but the market for them is small and historically the S class sedans do not hold value well. I can see Honda Accords, Toyota Camrys going for decent money at auctions as they are in demand, parts are cheap, and easy to repair.

This is a S-class I have been watching, going to auction tomorrow. My limit was $7500, which could of been a steal or a big loss as the extent of the damage is not clear. I think this MB will sell at auction tomorrow after fees somewhere between 18k-22k. Just two years ago I think this would of sold after fees under 10k. Although this car has only 15k miles, there is a reason USAA decided to salvage rather than repair. No idea what happened to the roof and rear window, how much water entered the car post accident (and may continue to enter), damage to the shell, I could go on and on. Of course, if one lives near Houston this car could be inspected the day prior to auction.

Blows my mind.... wondering if we may have a new and used vehicle shortage for the foreseeable future as two years of major cut in production has put a backlog in the system that won't go away..... beats me.

Used Mercedes-benz S-class for Sale & Salvage Auction Online - IAA

Used Mercedes-benz S-class for sale & salvage auction online or at a location near me. Find great deals on thousands of Mercedes-benz S-class for auction in US & Internationally.

www.iaai.com

 

[blufeb95]

Although right now some cars may be going to salvage auctions strictly because the lead time on parts is so long that the insurance has to total the car since it can't be fixed in a reasonable amount of time.

 

[Trav]

With the exception of exotics, Porsche rear engine cars, Morgans and a few others the price of even the finest Euro cars drops like a rock used. I could have had an off lease pristine Aston Martin V12 with low miles for 35K. Nice convertible V8 jags for even less but good lord look at the price of parts and availability, an exhaust for the Aston with no cat was almost 3 grand, I was seriously considering the car and even though I can repair it the cost of basic parts alone turns this wonderful car into a gigantic millstone.

A friend of mine bought a Roller some years ago in beautiful one owner garaged condition, not a difficult car to repair or maintain but it was down more than running waiting for high priced (an understatement) parts, he couldn't wait to unload it once the fun of owning such a machine wore off.

 

[GON]

Although right now some cars may be going to salvage auctions strictly because the lead time on parts is so long that the insurance has to total the car since it can't be fixed in a reasonable amount of time.

That is something I overlooked- cars being totaled be reputable insurance companies not because of the extent of the damage, but parts are not available to get the vehicle back on the road in a timely manner.

 

[jrvn]

i dont get it, i see just as many used cars and new cars on dealers lots as were in previous years, it must be another way of boosting the prices for the car manufacturers and their dealerships to spawn a false narrative to get the prices higher and make a profit off of panic buying, just like the toilet paper panic hoarding just recently there was no need for it but the news media sparked off a panic with it, and now the new panic button is no cars to buy because of chip production so hurry up and run out and get yourself a new or used car before the supply dries up or you'll get left out in the cold and the children will starve.

 

[atikovi]

This is a S-class I have been watching, going to auction tomorrow. My limit was $7500, which could of been a steal or a big loss as the extent of the damage is not clear. I think this MB will sell at auction tomorrow after fees somewhere between 18k-22k.

In S America, Latvia or 3rd world African countries that's probably a $35k-$40K car. Plus, labor rates are as low as $1 or $2/hour in some places I've been told.

 

[LazyDog]

The other factor is lots of YouTube videos showing folks buying these cars and kind of fixing what needs fixed for a quick dollar.

 

[GON]

In S America, Latvia or 3rd world African countries that's probably a $35k-$40K car. Plus, labor rates are as low as $1 or $2/hour in some places I've been told.

AK,

I get that, and when I watch the auctions on many MBs , Hyundai, and Toyotas I often see the bidder being from Africa and the Middle East. I also understand the import tax on a NEW S class in many countries can be five figures. Houston has a port for shipping. None the less- potentially 20k is a big upfront cost in my mind...maybe not for people in high import tax countries. I think this car 18 months ago without the damage (not sal vage) could of sold as low as 25k.

 

[partspro]

According to the Latest, Used Vehicles have about 2 months of high prices, then they will drop dramatically. Computer Chips have been holding up the production of new vehicles.

 

[dishdude]

I think the damage the car in the OP sustained was hail, which is why it is going for a premium, along with the low mileage.

 

[Danno]

According to the Latest, Used Vehicles have about 2 months of high prices, then they will drop dramatically. Computer Chips have been holding up the production of new vehicles.

Not seeing it on my side, we're still 5 - 6 months out on orders. Higher end vehicles with more tech, not happening.
Used truck prices rose again in August.

 

[partspro]

As posted, it's the latest buzz, no telling when the drop happens in Canada !!

 

[ron17571]

I just sold my Yaris and it was worth more now than it was worth a few months back. I can only imagine how insane used pickup truck prices are right now. They were already overpriced a few years back when I was still looking for one. The typical truck had 150 to 200.000 miles and was going for around twenty grand. I figured this was right before they needed a new engine and transmission.

 

[AZjeff]

i dont get it, i see just as many used cars and new cars on dealers lots as were in previous years,

Maybe where you are, not here. Last week there were no new HD Chevy or GMC trucks on the lots, 1 $85k Ram 2500 and it's been like this all year. No interest in cars so can't comment but the lots are sparse. The population here is approaching 150k so these aren't back water small town dealers. The supply problem is real.

 

[FADEC]

Maybe where you are, not here. Last week there were no new HD Chevy or GMC trucks on the lots, 1 $85k Ram 2500 and it's been like this all year. No interest in cars so can't comment but the lots are sparse. The population here is approaching 150k so these aren't back water small town dealers. The supply problem is real.

No trucks and very few cars on domestic lots here. My electrician friend blew up his work truck a few weeks ago. Had to buy a new Ford SD at the local dealer. It had just come in. Full asking price and they said if he didn't want it they have 6 people after him that want it!

 

[JC1]

I think the price of used cars will be high for the next few years. When I was in my 20s, I always wanted a German car, but doing my homework and having other cars that were cheap beaters and cost me enough money at the time I changed my mind.

I guess some people have to learn firsthand the hard way.

 

[dareo]

All you can do is sit on the sidelines and wait for the prices to break down. But you gotta wonder how many people are already on the sidelines waiting to buy the car dip, or keep it from happening for a lot longer.

 

[jrvn]

Maybe where you are, not here. Last week there were no new HD Chevy or GMC trucks on the lots, 1 $85k Ram 2500 and it's been like this all year. No interest in cars so can't comment but the lots are sparse. The population here is approaching 150k so these aren't back water small town dealers. The supply problem is real.

but but the children, the children are starving, better come out to New Jersey the lots are packed full of vehicles, glad i bought my trusty old toyota truck i wont be worrying about getting a new car for along long time

 

[jrvn]

I think the price of used cars will be high for the next few years. When I was in my 20s, I always wanted a German car, but doing my homework and having other cars that were cheap beaters and cost me enough money at the time I changed my mind.

I guess some people have to learn firsthand the hard way.

yes the prices are high and now the new cry is theres no chips to make new cars which sets off the panic button and this drives up the cost and panic buying begins and thats exactly what the auto makers want to happen, just like the toilet paper

 

[methusaleh]

Somewhat on topic...yesterday I was talking to someone who’s in management at one of the discount tire places. Their upper management recommended they place all of their orders for anticipated demand of China-made snow tires by the end of next week. Typically around here people buy and mount snow tires around early November.

Normally they don’t stock them beyond about a typical week’s worth of demand in advance.