Staggering inflated used car prices!

[CharlesInCharge]

I've paid careful attention to used car prices, as over the years I've picked up excellent used cars basically at the nexus of their lowest prices while meeting their highest remaining lifespan. For example, generally about year 20+/-, one could get a well maintained vehicle for about 1/5th original cost yet about 3/4 to 1/2 remaining lifespan (e.g. an originally $30,000 vehicle designed to last 300,000 miles might have cost $6,000 and have 75-150k miles.

I recognize the macro and micro economics of what's happening, with the supply chain problems, parts shortages, inventory problems, and probably 20% real inflation across the board.

But yowza, anything decent in the used market is 2x Kelly Blue Book, which seemingly has not been updated. And even worn out junk is commanding/asking far more than one might expect. Trashed vehicles with reported problems like "mysterious oil leak" or "coolant loss" or "shifting problems" (e.g. major financial expenses) are listed for more than excellent examples might have been in 2019. This is nuts! Further, it seems that dealership employees are no longer polite and accommodating; the few cars I've called on have been greeted by rude and short salespersons.

I'm thankful I don't need a vehicle right now and feel bad for anyone that needs to buy something, because this situation is out of hand.

 

[WylieCoyote]

Yep. I used to enjoy looking around for something that I might like better, because trading didn't really cost that much by the time I've beaten them down. Now? I'll be sitting still for the foreseeable future. The dealerships are making the most of a bad situation, not that I expected anything different. They are in the business of making money. It just won't be any of mine.

 

[ron17571]

Look at what used pickup trucks are selling for, many with very high miles and bringing visions of needing new engines and transmissions. It's crazy.

 

[dishdude]

Used car prices have been high since the great recession, I have not seen many 2-3 year old cars at a discount high enough to be worth buying over new for well over a decade. The good news is, you can buy new and trade up every 2-3 years and not lose a lot.

Even once you get to the 100k mark, it seems like cars over have been selling for around half of new...I much prefer to have the first half of it's life.

 

[Tdbo]

Used car prices have been high since the great recession, I have not seen many 2-3 year old cars at a discount high enough to be worth buying over new for well over a decade. The good news is, you can buy new and trade up every 2-3 years and not lose a lot.

Even once you get to the 100k mark, it seems like cars over have been selling for around half of new...I much prefer to have the first half of it's life.

This, especially if talking about Honda/Toyota.
I have bought year end models new, for roughly the same or less than I could buy the same car new with 15-20K on it.
I much prefer to make my own used car.

 

[JeffKeryk]

I understand new cars all sell at MSRP or better. MSRP used to be a joke.
Yeah, glad I am not in the market either...

 

[jagdriver727]

I'll make somebody a deal, I'll sell my 1998 Ford Ranger with only 334,000 miles for the low price of $9,900

 

[blufeb95]

My dad's Bravada blew up just in time, in February he paid $9500 for a 2015 Ford Escape 2.5 with 82k on it, I'd hate to see what one's going for now.

 

[Zee09]

I was just offered $5k more for a new car I just bought. Vroom is paying out the Ying yang..lol

 

[doitmyself]

How are insurance companies handling cars that are totaled?? Book prices or inflated prices?

 

[Hall]

it seems that dealership employees are no longer polite and accommodating; the few cars I've called on have been greeted by rude and short salespersons.

At this point, they probably have the attitude that if you're "just looking", they won't waste their time. Or if a semi-serious buyer is taking too long or asking for things, another salesperson might sell the car out from under them. I bought a Civic back in April and it wasn't terrible but it was a seller's market. I had a relatively new salesperson on the phone after I drove through their lot but couldn't find the car. Turns out the windshield got broken so it was off-site. I told her I was definitely interested and I would come back the next day. She called me in the morning when she got in and told me she took the keys so no one else could show it or sell it to anyone else. The price was pretty much non-negotiable as well. I did get a 2nd key and fob and a new gas cap for a "Check gas cap" warning that popped up.

 

[Hall]

How are insurance companies handling cars that are totaled?? Book prices or inflated prices?

From what I've seen, it depends on who's paying. If the other driver was at fault and you let his/her insurance handle the claim (big mistake), they'll push for book prices. If your own insurance handles the claim, they'll use current, advertised (i.e. "inflated") prices. They have to though in order to get you back into something comparable.

I've even seen some claims of someone buying a used car really cheap, say with mechanical issues, and someone crashing into them within days or weeks of buying it and it gets totaled. They can end up making a decent profit, not that it was their plan either.

 

[Leo99]

I've seen used cars selling for more than MSRP for a new one.

 

[ekrampitzjr]

I'll make somebody a deal, I'll sell my 1998 Ford Ranger with only 334,000 miles for the low price of $9,900

Don't laugh. I'm seeing early–'00s Rangers with high mileage (150,000+) going above $10,000. Glad I bought my 2011 for $12,000 when I did.

 

[Kuato]

LOL Too true!

We are actually on our way to sell the 2018 Flex (hunk o junk, several warranty repairs) for about $2k more than what we bought it for in December 2019!

 

[Mainia]

I went into my local Hyundai dealership and they have ZERO new cars and about 23 used cars. The trucks come in and the buyers are called to come get their cars. The sales guy said they aren't expecting a sitting car in the new car lot for a year++.

 

[Donald]

Wife's daughter finally needs her own car. We decided the best way forward was for her to pay her Mom a nominal price for the 2016 Crosstrek and for my wife to get a new one. We paid less than MSRP for the new Crosstrek but not much.

I like it when the listing for a used car says something like "car has trouble starting and shifting, probably a simple fix".

 

[Danno]

I have seen used prices get a little softer this week.
And we're getting new Rams in - more than we've seen in a while.
Time will tell on if this is a trend or a just a blip.

 

[Crash Bandicoot]

I know, thinking of ditching our 2015 Rogue since it has a ton of lingering suspension issues and clunks that warranty has paid out something like 5k on at this point and getting a motorcycle for me to use (wife would use the truck) until prices get back to normal. I think I’d get back pretty much what I paid for it in 2017 and 45,000 miles ago. My truck is worth 4 grand more than what I paid for it in 2018 and I’ve puts 38,000 miles on it. I work from home and live in a mild climate. Of course the moment I do that I’ll end up needing to drive a bunch and will get annoyed with just using a motorcycle.

 

[andreigbs]

Gone are the days when you could find a pretty nice car in the "Autos $5000 and under" catalog, at your local gas stations. I think over the years half of my cars have come from that publication which became the AutoTrader empire it is now.