People fighting over new cars while older used cars languish on the market

[Brons2]

As others have noted, in my area there is a shortage of used cars in all ages and prices. Any truck for anywhere close to $10K is going to have over 200,000 miles on it, or not built in this century. I have shopped around out of curiosity.

And everyone is dragging their old rustbuckets out of their barns and trying to sell them for big money.

 

[deanm11]

I characterize today's market more as "People paying silly prices for used cars when there are much better new car values"

You may not get your first choice or your first choice may have to be from a dealer out a couple hundred miles and be a little patient. I helped someone buy a Genesis GV70 - at list, and then someone for a cheaper car - Subarus and Mazda offered at MSRP.. the latter chose the 3yr old used Mazda CX-5 instead of new because of budget. I'd say this latter person is the poster child for what is going on - despite my insistence that the $22k 3yr old car has gone up in this market by $5k from normal and is a lousy value, while the new one is only up the $2k discount you'd normally get... There are a few Ford dealers selling ordered 2022 cars and trucks, all but the hottest models, at 3 to 4% below invoice, right now. Yes, you have to wait a bit...Patience, grasshopper.

 

[jeepman3071]

I characterize today's market more as "People paying silly prices for used cars when there are much better new car values"

I wouldn't say there are really any new car values out there. Dealers around here have crazy markup on ANYTHING that is on their lot just because they can't even get cars. One of my neighbors had an order in for a new Silverado. He cancelled it because the dealer finally said they have no idea when it will come in.

 

[dareo]

I wouldn't say there are really any new car values out there. Dealers around here have crazy markup on ANYTHING that is on their lot just because they can't even get cars. One of my neighbors had an order in for a new Silverado. He cancelled it because the dealer finally said they have no idea when it will come in.

I got a call back the next day on the new Stinger i looked at, they offered an extra 1k off sticker. I passed, but its already gone. The only chance at a good deal is to order or be nearby as its getting unloaded. They had that stinger for like 3 business days and its a Stinger, not a high demand item.

 

[nomas]

Around here , new cars are scarce and sell at or over MSRP . Good , clean used cars are in high demand .

 

[BMWTurboDzl]

Most people don't want to deal with unexpected repairs because they lack the money, equipment/tools, time, ability to address it. Seriously, if you were in that situation would you buy any car that's over 10yrs old?

It's why people lease. Trading depreciation for worry free ownership experience.

 

[avacado11]

5-10k cars tend to be 10-15 year old cars. Typical age when someone would trade in for a new car. But that’s the issue now. 5-10k inventory is low because they can’t get traded in for a new car. And whatever is traded in, gets resold for “top dollar” or the consumer just sells it private party and asks way too much.

Is there a market for 5-10k cars? Definitely. But it’s not the same customer base.

I’m actually currently looking for a 5-6k car but realistically for the mileage and condition they are in, I doubt you’d see more than $3500 if there wasn’t a chip shortage.

 

[Supersonic]

Yep, while reflecting on Auto Advocate channel on YouTube, they talk of car buying tips, I thought it's like everyone is waiting for the next car to come off the assembly line while standing at the end of the assembly line...

$3500 was the number I came up with after buying 2 mini-vans this summer, my initial cost was less but by the time I had them reconditioned to the point I would be able to use them regularly, I was around $3500 each, so that is the kinda the minimum number I would expect to pay currently for something that is decent enough to use after some service work.

We've all probably often seen ads where someone has a big list of parts and repairs and is trying to sell a car because they've got a newer one. Seems even though going through all the trouble to refurbish an older car, people finally get the newer one anyhow.

To another observation I previously posted; the newer ones tend to be more complicating and delicate (as in lower cost manufacturing, smaller wires and fragile components) making them less practical and less affordable especially after warranties are expired. Especially part being used cars bought as-is, no warranty, I often wonder seeing more recent but used car model break-downs along the road if they'd just bought that...

I almost bought a new car once, but my father strongly discouraged it and I gave up that idea. So the most I ever paid for a car was $5k, and I've owned about 13 cars that I had more that a couple of months. I am lucky to have experience, some training and interest in auto mechanics I can get by on a lesser car and if I had room (and time) I'd easily have a dozen more.

I might ramble on? Does it come down to what some are willing to spend and some just got to get a new car...there's all kinds of paths to get there. Do what interest you, or 'drive what you like' might be the best advice. Some insight understanding the cost before making that decision would be best, but might we all look in the rear view mirror and see a poor decision, luckily mine have mostly been I shouldn't have sold that as opposed to I shouldn't have bought that. I should stop this ramble for now.

 

[Kurtatron]

20+ Beater cars have not risen much at all. I've been considering selling my 21 year old Civic, with 140k miles. Pretty reliable, fuel efficient car. I've looked at similar Civics in the area, and the prices have not increased noticeably. Disappointing!

 

[billt460]

Lots of people can afford newer cars and don’t want to depend on a 15+ year old vehicle with unknown history. $500-800/month for peace of mind, safety features, power, efficiency, creature comforts and resale value isn’t that big of a deal to many or we wouldn’t see the current prices being paid.

This is it in a nutshell. A lot of people, (especially older, retired people), don't like, trust, or want a used vehicle. Regardless of how much of a "cream puff" it is, or may be.

They have money, and they don't want the risk of possibly breaking down. Yes, a new vehicle can have issues. But it is much less likely. And if it does they have a warranty, and the dealer has loaners, or people to give them rides to and from.

It all boils down to convenience and peace of mind. For many people that is worth paying extra for.

 

[CKN]

This is it in a nutshell. A lot of people, (especially older, retired people), don't like, trust, or want a used vehicle. Regardless of how much of a "cream puff" it is, or may be.

They have money, and they don't want the risk of possibly breaking down. Yes, a new vehicle can have issues. But it is much less likely. And if it does they have a warranty, and the dealer has loaners, or people to give them rides to and from.

It all boils down to convenience and peace of mind. For many people that is worth paying extra for.

It also boils down to where you live. On the East Coast and "The South" you are never hours from nowhere. As I can tell from your location-you know here in "The West" that is not the case. You cannot have a cellphone signal sometimes for 2 to 3 hours. A breakdown is a "MAJOR ISSUE" in some parts. I wold find it much easier to drive a "beater" on the East Coast or South as opposed to where we travel-especially on vacations.

 

[emmett442]

It all boils down to convenience

This is the only, correct answer. For the scope of this topic, new cars are not a necessity. They are a convenience. Conversely, used car repairs, breakdowns, maintenance is simply an inconvenience. Nothing impossible.

 

[dareo]

It is a little inconvenient to have your nearly 200k mile Yukon start leaking power steering fluid from its old pump. It didnt strand me and i got a great deal on a new OEM unit. That’s what weekends are for, putting new parts on your old cars because your too cheap to buy new.

 

[billt460]

It is a little inconvenient to have your nearly 200k mile Yukon start leaking power steering fluid from its old pump. It didnt strand me and i got a great deal on a new OEM unit. That’s what weekends are for, putting new parts on your old cars because your too cheap to buy new.

It sorta works that way with houses too. I spent Sunday replacing 35 year old fluorescent kitchen light fixtures. The ballasts were going south.

Before when I was working, everything broke during the week..... Now that I'm retired, everything breaks on the weekend.

 

[CKN]

It is a little inconvenient to have your nearly 200k mile Yukon start leaking power steering fluid from its old pump. It didnt strand me and i got a great deal on a new OEM unit. That’s what weekends are for, putting new parts on your old cars because your too cheap to buy new.

Been there done that....vowed never to do it again. At just shy of 100,000 miles my vehicles are traded in. Life is too short to spend weekends wrenching......

 

[dareo]

Been there done that....vowed never to do it again. At just shy of 100,000 miles my vehicles are traded in. Life is too short to spend weekends wrenching......

It is satisfying to repair something well yourself. It’s satisfying finding a great used deal and making a lot nicer through new parts/detailing. The GMT 800 life is the best!

I mean you buy new and all you can do is watch the vehicle age, depreciate, get scratched, its all down hill from the purchase.

At least this is what i tell myself until i am debt free and still have substantial investments. New car dealers wont see me for a while!

 

[billt460]

Been there done that....vowed never to do it again. At just shy of 100,000 miles my vehicles are traded in. Life is too short to spend weekends wrenching......

Life is even shorter when you watch your money constantly evaporate in interest payments and depreciation.

 

[Creekside]

I have been watching the vehicle market from a distance and am constantly surprised. My step sister and her husband have the cash to gamble on buying and flipping new vehicles and saw the market futures months ago. They ordered a couple new Wranglers, one is a 392, paid well over msrp, then flipped them and made several thousand dollars and only owned them a few days. The days of blue book are gone right now, a vehicle is worth whatever someone will pay.

I have been buying and selling semi trailers, a 5k trailer was a $1500-$2000 trailer on the wholesale market a couple years ago. I’m getting $10k plus for ~20 year old van trailers right now. Part of me feels like it’s robbery but it isn’t if both parties are consensual.

I’m still ripping around in my 94 Tercel that I bought 8 years ago for $1500. No new cars here. Drove it 309 miles on $32 last week at almost 37mpg. I just keep rebuilding everything on it and will continue until I can’t get parts anymore. Actually had a new windshield installed yesterday.

 

[Jetronic]

Lots of people can afford newer cars and don’t want to depend on a 15+ year old vehicle with unknown history. $500-800/month for peace of mind, safety features, power, efficiency, creature comforts and resale value isn’t that big of a deal to many or we wouldn’t see the current prices being paid.

I don't mind driving a 15 year old vehicle, but I'm wary of buying one. People tend to get rid of those cars because they are money pits or are scared it will become one shortly. And they are right, there's usually work to be done on them that has been postponed, or is about to need doing.

 

[svtrit]

The comments on wrenching on the weekend are good, as are the ones of not wanting to do that either. There was a spell last fall where I spent 5 weekends pretty much rebuilding our Beetle, and I was sick of it after that. Almost decided to sell my Jeep because I was done working on cars.

Though the Beetle was junk yard ready, it’s value went from $1500 when it became mine to $3500 in a couple months. It justified the $1500 or so I spent to get it right.

Now the fleet is in order (the Camry will need a CV axle at some point; just waiting for it to get a little worse), though it’s old and feeble, so I don’t mind a repair here or there. However, the moment the market tanks, I’ll be happy to get something newer with less miles in the garage. The day the Beelte moves on will be a happy day.