Vehicle resale values declining

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Originally Posted By: SeaJay
I may not know the market very well, but by me there seem to be a ton of low mile late model cars on the lower to mide end of the spectrum for sale that seem to be to be very inexpensive.
While that is not the case with PU's w/4 doors here in W. KY but it is for cars even as new as 2014. Zero/near zero easy car loans makes buying new very attractive. Last year at age 17 both kids were asking for college vehicles and they picked out their own. The daughter went for a Dodge 2007 Dakota Club cab and the son a 2002 Dodge Ram 1500 four door Plus (leather and all) and the prices were higher than I expected. Jan of this year I picked up a 2006 Ford Five Hundred SEL with 110K miles for $5K. 6K miles later it seems to be as functional as new so far. I love it because it is Volvo 1998-2006 unmodified chassis with Ford skin/engine with a 6 speed Aisin transmission. As an old man this is as nice of a car to drive as I have owned but I expect most young people are going to be best served by gone new entry/mid price. Most car loans are in the sub price rating I read so I guess that is a bubble to burst which if it does then there should be a ton of cheaper cars and pick up trucks. Hopefully we are set for five years at the house (we do have three drivable spares) and will look at where the market and our needs are then. It would be nice to get wife something smaller for retirement. As long as I can find mint like 50/100K vehicles at a fraction of new selling price I do not plan to ever buy new again. Between the ages of 650-95 I see a lot of fender benders. Deers around here is the best reason to not drive new vehicles around here. I brake like once a day or more for deer. Not sure why but having $$$ in a vehicle has lost it fun to me now.
 
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Originally Posted By: zzyzzx
Originally Posted By: surfstar
Originally Posted By: The Critic
I am still surprised by how strong resale values are today. My 2011 Prius has 130,000 miles and is a fairly "stripped" model (three). CarMax gave me an offer of $7,000 for the car, which is quite surprising given the mileage.
What? If I was a used car shopper looking for a commuter, $7k for a 2011 Prius III with only 130k miles sounds like a great deal, actually!
It sounds like a pretty bad deal to me.
+1 $7k for a Prius with 130k miles?
 

Kestas

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Originally Posted By: Kestas
Around here, where car prices are generally below average, I've heard stories where dealers are not dropping their prices on off-lease vehicles. I wouldn't be surprised if they are doing what the banks did when homes were foreclosed upon in the depths of the housing crisis. They are holding on to their stock until the market is more favorable to them. What's another year for the dealers to hold on to their stock?
Originally Posted By: crazyoildude
i dont think holding onto cars is ever a good idea for a used car dealer.. They will finance someone and when they ask how much for the car the stealer says only 300 a month never even saying what it will actually cost..They sneak the price into the deal. And after say 8 years they are finally paid off.
I think there's some truth to what I said about putting off selling cars that are coming off lease. From Wards Auto World received today: "At some auctions, there’s just so many cars parked out there; they just don’t have capacity. And the supply is not just from leases; it’s rental cars as well. There’s more de-fleeting of rental cars as that volume picked up. There’s more subprime (loans), which means on a volume basis there will be more repos as well. So it’s just supplies overall increasing. With leasing, the good thing is you can tell when the supply is coming back. On the others, it’s harder to tell. You have this issue where you have a lot of supply coming into the auction. You don’t want all those cars to come through the lane at one time, because that’s going to depress the values. The remarketer is making sure they are going to ease that volume through. So the auctions have to park those cars, and in some cases they have to turn that new business away."
 
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