Reality is vehicles don’t “lose” nor “gain” value until you actually sell it. Same is true for stock or mutual fund portfolios.2016 Mazda6, manual transmission.
I have periodically checked the value since the crazy days of Covid, mostly just out of curiosity. I can’t remember precisely what it was worth at the beginning of this year but I just checked tonight and it’s down at least $4k.
I wonder if this is the break in the used car market everyone says has been coming? It figures it would hit just as I was thinking of trading
KBB says my Mazda has lost $4k value this year.
- Thread starter Elkins45
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KBB, Edmunds, Car Fax and similar mean nothing as they are financed. Look how JD Power (also financed) has been abused. They even have participation awards!!!! Its what your specific local market is like!
A close friend of mine is a vehicle wholesaler. He said that hybrids are the only vehicles still pulling a premium at the auction block. EVs, pickups, and regular vehicles are all down 50% from this point last year.
Agreed.
I have never understood why so many people get wrapped up in the (perceived) value of their vehicle... For the average Joe, the only time value comes in is if you're selling or the insurance man gets involved - and then you're sure to take a financial hit. Unless you've got a 60's/70's muscle car, you don't have an investment, you have a durable good that serves a purpose and the only practical way to get the most out of it is to use it to the end of it's service life. Like Cujet, I tend to buy and keep cars for a long time.. I don't get wrapped up in "how much it's worth" when it comes time to repair it... I can't tell you how many times I've heard "I can only put X dollars in my car because it's only worth Y" or "I only paid XX for the car, so I'm not going to fix it" What? If the car is serviceable, you like it and does what you need it to do, then fix it! I'm no math wiz, but spending even 5k on a repair is cheaper than plunking down 20-60k for a new car.
All this said, I understand that there will always be certain segments of the population that effectively "need" a new car on a regular basis and not all cars are feasible to repair for a variety of reasons.. Take my 97 LeSabre - it has all sorts of power widgets and auto climate control - there's going to come a time when repair parts for the widgets dry up and the folks that can repair the climate control features can't or won't because the demand for it has dropped and they need to move on to things that are more current and in demand. It'll be a sad day, but that'll probably be when I get rid of it.
Same with both of ours. Now multiple sites and dealer approved cash offers (when in for service they call/text and ask if you want to know what it's guaranteed worth and if you want to trade up) show we might be heading back to a more "normal" world. It's good knowing I'm not driving cars that are increasing in value. When they kept going up in price I felt a need to wash them and vacuum them. Now, back to knowing they're losing value every day, who cares
That's what I've read in random news articles, too. Increase in defaults and such, too. But I think currently I read back closer to average levels. Lots of people with average or below credit needed (maybe wanted?) vehicles when rates were bumping up and prices were still high so they're paying a mortgage payment on a vehicle. For us, I'm just glad gas has dropped. Just getting to work, we're saving about $150-180/mth just on fuel, compared to earlier this fall.
Pickups down 50% in a year? No way no way no way!
You are probably thinking retail. My friend is a wholesaler. Think predominantly used vehicles and the occasional new vehicle that is not moving quick enough. In some states, if a vehicle sits too long on a lot, the dealer gets taxed on the value of the car. He takes those slow selling vehicles and sells them at the auction block for a fee.
He said that this time last year, because of the vehicle shortages, EVs and Pickups were selling for over their NADA assessed values. They have now dropped back down to where they should be and in some cases (specifically VW EVs) they are selling for below their assessed values.
