Loving the crazy used car market

[BMWTurboDzl]

Thats only if a car dealer trys to pay off the lease. The person that leased the car can easily pay off the lease and buy the car. Keep it. Drive it. Or trade it in. Or sell it outright.

Sure but now the owner assumes all the inconvenience and risk because they almost always finance the residual value with a loan. So now the dealer has regained some leverage since you're now a motivated seller.

People who do this are not necessarily looking to keep the car. I'm a perfect example as I for one can't wait to get rid of a C300. The car isn't worth the residual and I don't want to go through the hassle of buying out the vehicle (includes paying sales tax) only to turn around and essentially break-even on a trade two weeks later. I'm talking about netting less than $3k. Before Mercedes changed their policy (Q3 2021) we could've made $8k at the time but she would've been without a car for the foreseeable future.

 

[Jarlaxle]

Sure but now the owner assumes all the inconvenience and risk because they almost always finance the residual value with a loan. So now the dealer has regained some leverage since you're now a motivated seller.

People who do this are not necessarily looking to keep the car. I'm a perfect example as I for one can't wait to get rid of a C300. The car isn't worth the residual and I don't want to go through the hassle of buying out the vehicle (includes paying sales tax) only to turn around and essentially break-even on a trade two weeks later. I'm talking about netting less than $3k. Before Mercedes changed their policy (Q3 2021) we could've made $8k at the time but she would've been without a car for the foreseeable future.

I suggest calling around to dealers, Carmax, Vroom, and Carvana, see what they'll offer.

 

[BMWTurboDzl]

I suggest calling around to dealers, Carmax, Vroom, and Carvana, see what they'll offer.

We did a few months ago.

 

[KrisZ]

I would evaluate your long term vehicular needs, because if you need to buy a vehicle, you will hate the used and new car market.

I highly doubt this is all consumer demand, I suspect, just like with the housing market, there are some corps involved, buying out whatever they can and holding.

Nobody knows how long this will last, and we might not see a meaningful relief at all.

 

[measureman]

We did a few months ago.

You need to do it again now.
When I called my dealer in December of last year I was given a buy out of $15,500, now it's a little over $16K.

 

[Jarlaxle]

You need to do it again now.
When I called my dealer in December of last year I was given a buy out of $15,500, now it's a little over $16K.

This. It's THAT crazy now.

 

[measureman]

This. It's THAT crazy now.

yup did the deal today.
They paid off the residual and cut me a check for $6678.00
As I was waiting for my ride home the used car manager was buying a late model Silverado 2500.
Seems people are selling vehicle's they dont need anymore to take advantage of the crazy high prices they are getting.

 

[Slow Car Sport Mode]

We have one coming off lease in January of '22. Residual on it is $9800. They're selling for double that on carmax.

I'm hoping Nissan won't pull a quick one and prevent us from buying it.

Nissan basically gave my father a brand new 2022 vehicle (2023?? Too soon?) because I think they had his sold, he said he didnt want to get rid of it but the arrangement was too good to pass up.

All these 19,000 mile or so (may have been 9000. 2021, maybe 2020 etc) brand new lease vehicles. In this case, specifically Nissan.

I do not understand how the business works. He basically got a brand new car for free and they paid him to take his off lease back early.. ?????

 

[thastinger]

Some people have told her that she will never own a car and will continue "renting".
Her reply was I make $200,000 a year and don't care.

That is not enough money to have that attitude about depreciable assets.

 

[measureman]

That is not enough money to have that attitude about depreciable assets.

Well it was to her.

 

[grampi]

The market is great only if you're selling...if you have to buy another vehicle to replace the one you're selling you're not gaining or losing anything...

 

[measureman]

The market is great only if you're selling...if you have to buy another vehicle to replace the one you're selling you're not gaining or losing anything...

Yes but there's always the fun of giving that new vehicle a good coat of NU-Finish.

 

[CKN]

Yes but there's always the fun of giving that new vehicle a good coat of NU-Finish.

Conversely-there is always the "bragging" rights about how brilliant one is on BITOG on keeping a beater running....

 

[dareo]

Some people have told her that she will never own a car and will continue "renting".
Her reply was I make $200,000 a year and don't care.

Leasing is luxury. If one is making $200k and that is a stable/growing number then why not? Yes, wealth is built faster driving old cars you bought with walking around money but its not for everyone.

They can always buy out the lease at anytime if they want a forever car.

 

[Wolf359]

Leasing is luxury. If one is making $200k and that is a stable/growing number then why not? Yes, wealth is built faster driving old cars you bought with walking around money but its not for everyone.

They can always buy out the lease at anytime if they want a forever car.

Considering the average income of Mercedes owners is about 150k and BMW is 130k, a 200k income is pretty good and nobody should be worrying about someone making 200k and not owning anything.

Which income class purchases BMW vs Mercedes? [ Detailed Answer ]

Table of Contents show 1 Income classes that buy luxury cars 2 Mercedes buyer demographics 3 BMW buyer demographics 4 Additional luxury car FAQ 4.1 Which income class purchases Rolls

luxurycarsa2z.com

 

[measureman]

Considering the average income of Mercedes owners is about 150k and BMW is 130k, a 200k income is pretty good and nobody should be worrying about someone making 200k and not owning anything.

Which income class purchases BMW vs Mercedes? [ Detailed Answer ]

Table of Contents show 1 Income classes that buy luxury cars 2 Mercedes buyer demographics 3 BMW buyer demographics 4 Additional luxury car FAQ 4.1 Which income class purchases Rolls

luxurycarsa2z.com

Oh!
I better start looking for a mint condition Yugo.

 

[grampi]

Conversely-there is always the "bragging" rights about how brilliant one is on BITOG on keeping a beater running....

I know this is a shot at me, but I prefer to think the brilliance is in the vehicle's design...

 

[measureman]

I know this is a shot at me, but I prefer to think the brilliance is in the vehicle's design...

No the brilliance is in keeping that vehicle with a fresh coat of Nu finish

 

[Wolf359]

Oh!
I better start looking for a mint condition Yugo.

You probably can't afford it.

 

[grampi]

No the brilliance is in keeping that vehicle with a fresh coat of Nu finish

Did you accidentally eat some of that garbage? You can't seem to get it out of your system...