Used Car Prices and COVID-19

[PimTac]

Originally Posted by Imp4
Originally Posted by atikovi
Originally Posted by Imp4
Originally Posted by atikovi
Paid $1,350 for a 2003 E150 wagon with 144K two weeks ago at Copart. Clean undamaged donation car. $1718 OTD. Nobody is giving anything away.

Your anecdote is not data.


Then tell us of YOUR recent Copart experience. Year make model etc. that you bought.

I don't have to have had a Copart experience to state that your experience is not data.




It just shows that buying used cars sight unseen is a gamble. For some, everything is a gamble.

 

[diyjake]

Originally Posted by atikovi
Well, I was going to take a bus to pick it up and drive it back, it looked so good. Glad I didn't. Thing is missing like a you know what. Either it has the original plugs in the infamous 5.4L and the owner got a quote for replacing them and decided no, or they already tried and broke a plug or two and decided to get rid of it. People rarely get rid of a good running vehicle.


That is kind of what I excepted from these donated cars.

 

[DaRider34]

Yeah most of the trade in companies like Carvana, Vroom are not taking anything in unless you buy something from them. Not sure about carmax. Trade in values have dropped about 10% when i was checkin vins from early march till now. When driving by dealerships lots they all look completely full of mostly new vehicles.

 

[JTK]

I would think COVID or not, anything that's easy to flip is going to sell. Trucks and SUVs are probably hot given low fuel costs lately.

 

[Lolvoguy]

Originally Posted by TCU_Adam
VW has 0% for 72 months and the dealerships in and around Austin/San Antonio are discounting anywhere from $1,500 to $7,000 depending on the model. It says the 0% will only last until end of April but I'd imagine that will be extended too.

Up here in Canada, we also have the 0% financing for up to 72 months.
Usually only the big 3 offered deals like that.
Interesting times

Originally Posted by JTK
I would think COVID or not, anything that's easy to flip is going to sell. Trucks and SUVs are probably hot given low fuel costs lately.

I've been eying up a Viper GTS lately.
Would make our weekly grocery trips a little more enjoyable!

 

[ryster]

Sure 0% is free money, but even then financing a car for 72 or 84 months is crazy [unless you know in your heart of hearts that you plan to drive it in to the ground.] I saw a Hyundai commercial this morning promoting 0% for 84 months plus deferred payments for 4 months. So essentially 88 months to pay it off. I guess it is great for people that want a new car and need those extended terms to afford it, but wow. Busy families doing this will still be paying off that car after it has well over 100K-120K miles on it.

 

[02SE]

Originally Posted by Lolvoguy

I've been eying up a Viper GTS lately.
Would make our weekly grocery trips a little more enjoyable!

The 5th gen is a great car.

 

[Lolvoguy]

Originally Posted by 02SE
Originally Posted by Lolvoguy

I've been eying up a Viper GTS lately.
Would make our weekly grocery trips a little more enjoyable!

The 5th gen is a great car.

That's what I've been hearing and has me seriously tempted.

 

[Jimzz]

Originally Posted by ryster
Sure 0% is free money, but even then financing a car for 72 or 84 months is crazy [unless you know in your heart of hearts that you plan to drive it in to the ground.] I saw a Hyundai commercial this morning promoting 0% for 84 months plus deferred payments for 4 months. So essentially 88 months to pay it off. I guess it is great for people that want a new car and need those extended terms to afford it, but wow. Busy families doing this will still be paying off that car after it has well over 100K-120K miles on it.



The other thing people forget is you will most likely be upside down on the loan in short time. So now you need to carry gap insurance and also full coverage for 80+ months as well. So maybe 0% on the loan but extra cost else where.



Originally Posted by DaRider34
Yeah most of the trade in companies like Carvana, Vroom are not taking anything in unless you buy something from them. Not sure about carmax. Trade in values have dropped about 10% when i was checkin vins from early march till now. When driving by dealerships lots they all look completely full of mostly new vehicles.


Carmax furloughed 15,000 employees and has been slowly closing some stores. So they are not doing well either as common sense dictates.

 

[KrisZ]

Originally Posted by ryster
Sure 0% is free money, but even then financing a car for 72 or 84 months is crazy [unless you know in your heart of hearts that you plan to drive it in to the ground.] I saw a Hyundai commercial this morning promoting 0% for 84 months plus deferred payments for 4 months. So essentially 88 months to pay it off. I guess it is great for people that want a new car and need those extended terms to afford it, but wow. Busy families doing this will still be paying off that car after it has well over 100K-120K miles on it.


If one knows how compounded interest works, which sadly many do not, and don't over buy because you only look at the monthly payment, one can still take full advantage of 0% interest and pay off the vehicle early.

 

[fdcg27]

In the last serious recession, prices of all vehicles new and used cratered along with sales.
New car sales declined to some absurdly low level which in turn meant that fewer used cars were available.
Used values thereafter increased as new car sales plummeted bringing fewer used units to market.
Cash for Clunkers had little effect since it was mainly the decline in new sales that brought a decline in used car availability and most of the clunkered vehicles really were on their last legs anyway.
In the next six months, there will be real good deals on new vehicles, especially sedans since the lemmings will flock to pickups and SUVs based upon current low fuel prices.
As manufacturers adjust output to meet demand, pricing will firm and deals will evaporate.
We've seen all of this within recent memory.

 

[macarose]

It has already happened. A lot of the vehicles I have purchased over the past month have only been 80% to 90% of wholesale. Even the low mileage popular models in excellent condition are having trouble getting anywhere near the wholesale values of early March.

If you want to see some of my recent buys feel free to click here. I pretty much buy everything but I tend to focus on compacts at 48 Hours And A Used Car because of the overwhelming majority of my business is with rideshare companies. Thanks to all the delivery services, those operations are still performing fairly well.

https://www.facebook.com/48-Hours-And-A-Used-Car-327864380887174

 

[diyjake]

^^ That is some nice deals there.

 

[atikovi]

Originally Posted by macarose
If you want to see some of my recent buys feel free to click here. I pretty much buy everything but I tend to focus on compacts at 48 Hours And A Used Car because of the overwhelming majority of my business is with rideshare companies. Thanks to all the delivery services, those operations are still performing fairly well.

https://www.facebook.com/48-Hours-And-A-Used-Car-327864380887174


HAHA, clever way of sneaking in an ad for your service. BTW, what happens if you buy something and find out it needs a bunch of work? Do you still make them buy it or forfeit the deposit?

 

[dohnuts]

In a separate thread I asked for suggestions since we are buying a new group of cars for our family this year. We targeted this year since I believed the economy was going to contract greatly. Still targeting end of this summer to start buying. Given what is happening, Unless there is direct stimulus for automakers and dealers it looks like prices will be down big this year.

 

[macarose]

Neither.

All of the vehicles go through a post-sale inspection at the wholesale auction that also guarantees the vehicle for 14 days and over 200 miles. I only buy vehicles that are 2016 and newer. As a long-time auto auctioneer, remarketing manager and part-owner of an auto auction here in Atlanta, I have pretty much spent my career developing auditing practices that eliminates those vehicles that aren't worth your money.

The majority of my business is actually fleet lease and commercial customers, and the mechanical inspections I perform are far more rigorous than the industry standards. Condition reports, vehicle histories, post-sale inspections. I also regularly inspected and appraised over 200 vehicles a week when I worked at Capital One Auto Finance. What some consider a job, I see as my life's work.

I focus on those customers who value condition and are willing to invest in it. Businesses do because they are interested in a workhorse. Those three vehicles I bought Tuesday and highlighted went to a rideshare business here in Atlanta that has bought nearly 30 vehicles from me this year.

Individuals usually want 'showhorses' and are unrealistic about the car market. The ones who only want a deal are usually put off by the fact that all the auditing requires a return that isn't free.

If you want to learn more about my strategies for car buying feel free to read this.

https://www.thetruthaboutcars.com/author/steven-lang/

http://www.dashboard-light.com/buy-great-used-car/

https://www.google.com/search?sxsrf=ALeKk00dQQKT5HGwhSYW6lZUSEuiLsGdCA%3A1587007782381&ei=JtGXXtXlFsiyggfE2IagBQ&q=steven+lang+yahoo+car+buying&oq=steven+lang+yahoo+car+buying&gs_lcp=CgZwc3ktYWIQAzoECCMQJ0oKCBcSBjEyLTMxM0oICBgSBDEyLTNQn1JY61dgj1poAHAAeACAAfECiAGOEZIBBTItNi4ymAEAoAEBqgEHZ3dzLXdpeg&sclient=psy-ab&ved=0ahUKEwjVkP_YgOzoAhVImeAKHUSsAVQQ4dUDCAw&uact=5

 

[NO2]

It's pretty amazing how inexpensive nice sedans are, especially used. For example, 2019 Ford Fusion Energy Titanium (25 mi range electric) + gas for around $20-21K asking price. Loaded up with heated/cooled leather seats, fancy Sony infotainment system, all of the safety gear, They were close to 36K new. 44% depreciation in 1 year at asking price. Probably closer to 50% when sold. 103 mpg electric, 42 gas.

The only problem with this model is the tiny trunk, but it makes a great commuter car.

 

[DaRider34]

Originally Posted by NO2
It's pretty amazing how inexpensive nice sedans are, especially used. For example, 2019 Ford Fusion Energy Titanium (25 mi range electric) + gas for around $20-21K asking price. Loaded up with heated/cooled leather seats, fancy Sony infotainment system, all of the safety gear, They were close to 36K new. 44% depreciation in 1 year at asking price. Probably closer to 50% when sold. 103 mpg electric, 42 gas.

The only problem with this model is the tiny trunk, but it makes a great commuter car.


More likely due to ford moving away from cars towards cuvs, isnt the whole fusion lineup on the chopping block . It would be nice to find a 1 year old honda accord or toyota camry at those prices.

 

[Saabist]

Originally Posted by Snagglefoot
19 year old car with busted motor = worthless. Can't do much.

Actually aside from the blown motor that's the kind of car that I look for, something at the bottom of the depreciation curve. I purchased my current daily driver in 2011 ago for $1500. It's needed repairs over the years of course but I've saved huge $$$, and of course no car payments. (I generally buy old, high-mileage vehicles for cheap that are basically solid but need some TLC. When I was younger a blown engine wouldn't faze me on an otherwise good car but I don't swap out engines any more.)