Must have been priced right, gone now.
Not sure I could go Misu, not sure about long term parts availability.
Used prices to rise again?
- Thread starter supton
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Not sure I could go Misu, not sure about long term parts availability.
GON
$100 Site Donor 2024
Recently, I did some work in Sri Lanka. Last year, their currency was devalued overnight....... overnight their money was worth half it was the day prior, and everything cost double, in just 24 hours. The theme among the Sri Lanka people was all the same- if they knew the inflation was coming, they would have bought items the day prior.
The way to hedge against inflation is have an income producing hard asset, like farmland. Not buying a needed product because of inflation may not work out- typically products do not get cheaper during inflationary times.
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The cheaper beaters are still out there, they are just older, with higher miles, in worse condition, and higher priced than what we are used-to. The average age of a registered vehicle in the US is now up to >12.2 years, a new record.
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Last July my '02 ford Explorer's trans bit the dust. I figured it was too old to bother fixing, so I junked it and began shopping for a replacement. The prices I saw were insane for 10-12 year old vehicles with 200k mile on them. If I had known what things were selling for, I would have fixed the trans and been ahead of the game.,,
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I simply miss the old days. I get it, people today who love the way things are, think the old days are fake somehow. They were real. I just saw a post, $95,000 median income with this masters degree! Well, I calculated what an engineer got when I entered the work force, and converted to 2023 dollars, and it came out $86k, but that's a 22 y.o. with a bachelors. Same degree today, pay is less than 86k.
So back to the trend. Pay going down over time, and car prices going up. Yep, I miss the days of cheap beaters too, like getting a car for $700 and driving it 8 years lol
I don't disagree with the logic but the idea of producing a hard asset isn't feasible for many people. Also the idea of buying products ahead of some big bad event requires a crystal ball. I unfortunately don't have one.
My point is buy what you need and hold on things you don't. It's not a perfect system just a cautious approach that has worked for me so far. I also live a simple life well within my means which helps hedge inflation also.
I think this was a fluke-- fuel injection and galvanized panels came out in the late 80s, early 90s and these cars didn't die at 100k miles like the previous generations. So people dumped them at that odometer reading, creating a glut that noone would touch, so they were cheap as dirt. Now people expect 250k and used cars are priced to match.
I rocked an $800 Saturn SW1 for eleven years and 98k miles, then sold it for $500.
And the AC was still cold!
twouvakind
Site Donor 2024
They went down? What did I miss?
Incorrekt. Any time you lessen supply when there's demand, there's going to be increases.
Also: https://www.motorbiscuit.com/governments-cash-for-clunkers-event-cause-used-car-price-spike/
It may not have been a huge reason but it was still a reason why.
See that massive drop in new car sales? That's the reason for the spike in used car pricing. When you go from 16 million new cars sales in the US annually to not even 11 million, there will be a lot less used cars on the market. C4C took less than 700k vehicles off the road, we've had storms that have done that.
*part of the reason
Agreed, C4C did also have a part in it....glad you finally agree.
*part of the reason
Agreed, C4C did also have a part in it....glad you finally agree.
Yes, I agree that you don't know what you're talking about.
I mean, I wouldn't if I didn't but I do so that doesn't work. But thank you again for agreeing that C4C did have some impact on things. That's all we needed.Yes, I agree that you don't know what you're talking about.
All the beaters get shipped overseas, if you’ve ever tried to outbid a foreign buyer on copart you will understand the futility.
Maybe that will change since we have the starts of a new form of global trade imbalance leading to a worldwide recession but all the normal market behaviors seem to have ended.
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Someone in my office said a used car like a Infiniti 8 cyl SUV can fetch 200k USD in his country. Mostly taxes to discourage the importation...
GON
$100 Site Donor 2024
This article states used car prices at Mannheim auto auction are up four percent so far for the month if February. This is one indicator that suggests used car prices will be rising, not falling.
"The Manheim used car data showed that used car prices rose by 4.1% through the first half of February. That is the most significant increase in used cars since October 2021."
seekingalpha.com
"The Manheim used car data showed that used car prices rose by 4.1% through the first half of February. That is the most significant increase in used cars since October 2021."
Another Massive Inflation Shock Is About To Hit The Market
The market can't catch a break; even when the equity market is closed, more inflation data is announced. Click here for a detailed analysis.
seekingalpha.com
^ This. I've been in this mode for 15 years now. But your signature indicates two MY 2022 cars. Preaching water and drinking wine?
Econ 101. Financing (=loan) increases demand. Consumers who otherwise would not be able to afford a vehicle become buyers, competing for the supply of cars with cash buyers. This drives the price upwards. The incompetent FED kept rates near zero for way too long which compounded the effect and drove prices to the stratosphere. Stimmy checks added to the craziness.
In theory, prices can come down when interest rates rise. However, in reality, this is not likely to happen until rates get ahead of inflation. Today, that would mean 12%-15% Fed funds rate in order to meaningfully fight high inflation. The Fed doesn't have to cojones to do that, so we're stuck in perpetual high inflation environment.
Yes, some borrowers will struggle to make payments when their rate adjusts higher and will default. However, in reality, many of those cars will not be repossessed. Those that are repossessed are typically in sorry shape (poor maintenance or sabotage) and end up as scrap. So, no real help on the supply side. Prices keep climbing.
To some extent I suppose. But we were able to sell my wife's car for a $4k profit and get her into a new upgraded car for around $1k cost. Similar story for me, I was able to upgrade from a "lesser" car for about $1500.
