09-14-2020, 10:14 PM | #221 | |
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One point is the Michigan leasing phenomenon, it seems real. I have relatives in Michigan and there is a strong leasing culture there. I prefer to pay cash in full and to operate the vehicle to 200k miles, so I don't fit the program there. |
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09-15-2020, 12:53 AM | #222 |
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I'll throw in my .02 cents. There are a few reasons I see as to why used car prices are high:
Unemployment money: I have heard of quite a few people putting $1200- $2400 as down payment. The same amount that people got from the government. A lot of people did not even need the extra money, so it was like a bonus. An extra $300-600 every week on top of unemployment for what 4 months. Thats $4,800-9,600 for each person. What if you and your spouse where unemployed? double it. Now that money is suposeto to to rent, morgage etc. but if your not paying your your rent and morgage etc. extra money!! Low intrest rates: alot of car com. have them, more car for less money. People are refi. their home loans and pulling money out or just saving the money from the low rates. Covid 19: People don't want to use Uber/Lyft anymore. They dont want to use public transportation. They would rather have their own car now. Low supply:With a lot of parts made in China and others new cars/ trucks are out of stock. you go to the dealer for a new car/truck and theirs only a few left. The dealer will want top dollar for them. When the new are gone, then they sell used. Which raises the price on used cars/trucks. Looking back it seems people miscalculated the goverment injection, lower supply, higher demand. I also thought the supply would be the same and the demand would fall off the clif. I also thought people would be selling what ever they could stay-a-float. I just think its going to happen much latter now. Maybe 2nd quarter of 2021. Thank you looking back it seems |
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09-15-2020, 04:43 PM | #223 |
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Depends on the type and brand. High ends have a high depreciation rate and used ones aren't selling well because people want the next new model and not a used one. Underwriters are also throwing a huge wrench into things by not financing anything over 5 yrs. old.
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09-15-2020, 05:46 PM | #224 | |
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Annnd. You have to remember that there is pent up demand from all of the uncertainty back in March which scared dealers from buying inventory at auction to remarket. I took advantage of this and sold my Used car for what I could have gotten two years ago and leased a BMW at an employee rate. By that, I mean Honda Accord money. If their will be a collapse, it will be in the new car market. Used cars are always seen as a better value in uncertain times, unless you are certain your getting a better deal on new(usually only happens in the compact market). |
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09-15-2020, 08:31 PM | #225 |
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It's also interesting to me to have learned the used market is nearly 3x the size of the new market, in terms of units sold per year. It's more liquid market based on number of transactions per year.
Supply and demand, as has been mentioned several times on this thread, is the leading cause for firm to higher used vehicle prices throughout 2020. Demand must have been firm, based on the price and supply data. Consumers demanding a new or nearly new vehicles bought what was available. For a period of time, used vehicles were more prevalent than new vehicles, because of factory shutdowns. This is still the case, to a lesser extent than earlier in the year. My local MB dealer is getting spotty new vehicle deliveries and says the Vance, AL facility continues to have C19-related component supplier shortages. |
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09-23-2020, 08:11 AM | #226 |
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More economic strength suggesting a collapse in used car prices is less likely than before.
https://www.fhfa.gov/AboutUs/Reports...July-2020.aspx Home price appreciation gives some people the feeling of wealth, increasing confidence to borrow and/or spend. It also allows people to sell their home for a fair, in the eyes of the seller, price so that people can move on to the next chapter of their lives. |
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09-24-2020, 12:23 PM | #227 |
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I just walked out of my local VW/Audi dealer and they said they are not receiving any new Audis until December at the earliest. The Atlas is made in Chattanooga and the Tiguan is made in Mexico, and these are coming into the dealer.
So for people that must have an Audi, the options in my area are a recent model used vehicle (upward pressure on price) or search far and wide for a new model (upward pressure on price). Supply of new Audis in my area is reduced at the present time. Last edited by chassis; 09-24-2020 at 12:36 PM.. |
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10-12-2020, 04:22 PM | #228 |
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Comment from Econoday on August's CPI number, provided via Fidelity:
"If not for a price surge in used cars, improvement in consumer inflation would have been marginal in August." Is it time to stick a fork in the hope of a price crash of our wish list cars? Last edited by chassis; 10-12-2020 at 08:22 PM.. |
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10-23-2020, 11:25 PM | #229 | |
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12-03-2020, 11:43 AM | #230 |
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Latest government data shows a small decline in vehicle sales. While one data point does not make a trend, it’s something to note. My local MB dealer said things were slow in October.
Maybe some deals will materialize for our low mileage, gently used preowned target vehicles? |
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12-20-2020, 08:33 PM | #233 |
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I still can't believe this market. My 3-door GTI MK7 has gone up since the beginning of the year. Yet unemployment is still high and the small businesses that fuel the country are suffering because of an almost year long shut down.
How has this market not collapsed with auto debt being at an all time high?! Edit: I have no interest in selling my cars and buying another car. My cars are all paid off and driving them for as long as feasibly possible.
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12-20-2020, 08:53 PM | #234 | |
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12-20-2020, 10:25 PM | #235 | ||
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I just hope I can pay off my house as fast as possible to not have to rely on the government or bankers in the future!
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12-21-2020, 03:00 AM | #236 | |
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On the other hand, people in mid-ladder and high-bracket jobs have a lot more 'available' disposable income because they stopped blowing money on restaurants and gym clubs. Now they blow that same money on cars and 'entertainement' goods, like bicycles and camping gear, which are sold out pretty much everywhere. |
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12-21-2020, 02:07 PM | #237 | |
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Better in my pocket (eventually) than the bank's. |
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12-21-2020, 02:29 PM | #238 | |
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12-21-2020, 03:31 PM | #239 |
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Right but NONE of you are addressing what I keep saying. With this many people out of work, even if they are all entry level people, it SHOUD have an impact on demand for goods and services which in turn sees companies cut back on better paying jobs to cover the shortfall in revenues. I mean, this is exactly why we have ebbs and flows in our economy.
So somehow, that is not happening and it HAS to be the money bring poured in by governments to keep both people and businesses afloat. |
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12-21-2020, 04:05 PM | #240 | |
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https://www.thebalance.com/current-u...d-news-3305733 For a lot of the population they kept their normal pay and their expenses have dropped significantly (gas, car maintenance/repair, restaurants, bars, vacations, sporting events, movies, clothes, general shopping)
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12-22-2020, 09:23 AM | #242 |
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It seems like retail and restaurants - the service industry doesn't account for a large part of the population.
Even under this so called recent lockdown, businesses and manufacturing are mostly open and have been all year under more lax regulations (speaking of Canada). We can criticize the governments' choices all we want but it is what it is. The mods aren't looking to have people argue about politics and it's for the best. I agree tho, there should have been a shock to the economy in general given all of this uncertainty but the truth is that nothing major really changed. Looking at the housing market for instance, it's hotter than ever. |
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