Don't cha think used car prices should come down...

stef · #1 12/25/08, 10:59 PM

even more by spring?
One winter goal is to put aside several hundred for a down payment on a better used car.I've noticed a significant difference in one local used car lot re. price reductions.
I'm hoping that trend will continue for the next 4 to 6 months.

Stef

**ladycat** · #2 12/25/08, 11:06 PM

Some types may go down in price (gas guzzlers), but economy used cars *may* go up.

I'm just guessing. It will depend on the economy and on gas prices.

seedspreader · #3 12/25/08, 11:29 PM

Hard to tell, but I imagine that if the credit market stays locked up, that the lower priced (normally) cars will go a little higher due to demand and more people needing cars and not being able to buy them without the available credit.

Cash will talk though.

Right now, dealers are desperate to make ANY kind of sales.

**clovis** · #4 12/25/08, 11:35 PM

Dealerships may heavily discount used cars to create sales.

On the other hand, buyers may gobble up used cars because they are strapped for cash, or want to spend less instead of buying new.

In other words, it would be hard to tell. Fuel prices could impact car prices too.

At the rate that the manufacturers are slashing prices, new might be the way to go.

GM, last I heard, offered 100,000 mile waranty, which must be honored for up to 5 years, even if they went completely out of business, which is unlikely.

With new, you will get a lower interest rate than on a used car.

I would rather have a new base model car without the frills than a used car with heated seats and sun roof, especially if the price difference isn't too great.

You have to look at the entire package, Stef. Figure out what your interest rate would be on used, and see if GM is offering 0% financing. Figure out what the difference in price is going to be, and figure out the value to you.

Now if you are looking at a car that is sigificantly lower than a new one, you can throw my advice out the window.

But I see lots of people buy a loaded truck for $15,500, even though it has lots and lots of miles, and finance it at 9% interest, when they could have had a low option, brand spanking new F-150 without any miles and a great waranty for about $12,000, out the door, and financing between 0 and 6%.

I am taking the new F-150 any day of the week. Leather seats and fancy stereos don't get you to work.

Clove

Hoop · #5 12/26/08, 06:33 AM

Used car prices WILL certainly come down. Here's why. Detroit has sales promotions on most of their vehicles. Some have rebates of $6000 on $20,000 vehicles. When new vehicles sell this cheap, used car prices take the same proportionate price reduction.

No fool is going to pay $14,000 for a year old vehicle with 15,000 miles on it when a new one can be purchased for the same price.

Spinner · #6 12/26/08, 07:20 AM

Yesterday I read a post about a dealer offering a free used car with the purchase of a new car. Used car price was limited to $10,000. That set off alarm bells in my head. We know the dealer isn't going to loose money on the deal. That tells me that their profit margin is WAY high if they can give incentives like that.

Why not just discount the price of the new car by $10,000 and get it sold?

FL.Boy · #7 12/26/08, 07:25 AM

Quote:

Originally Posted by ladycat

Some types may go down in price (gas guzzlers), but economy used cars *may* go up.

I'm just guessing. It will depend on the economy and on gas prices.

You would think that would be true but the F-150 and Chevy Silverado were the 2 best selling vehicle this year so people are still buying them. All these adds on TV about new trucks for $12,000 is BS when you get there you can't get approved or its been sold out.

FL.Boy · #8 12/26/08, 07:31 AM

Quote:

Originally Posted by Spinner

Yesterday I read a post about a dealer offering a free used car with the purchase of a new car. Used car price was limited to $10,000. That set off alarm bells in my head. We know the dealer isn't going to loose money on the deal. That tells me that their profit margin is WAY high if they can give incentives like that.

Why not just discount the price of the new car by $10,000 and get it sold?

The dealer have next to nothing in there used trade in cars. If they tell you there giving you $3,000 for your trade in it's really more in the $500-$1,000 range they just mix the numbers up. It's best just to sell your old car.

ThreeRivers · #9 12/26/08, 07:36 AM

I have some friends who own three "we finance" car lots. There cars have gone up. because so many people that used to get financing with lesser credit are now being turned away. They have a higher demand because they will finance anyone with a down payment.

seedspreader · #10 12/26/08, 07:37 AM

Quote:

Originally Posted by Hoop

Used car prices WILL certainly come down. Here's why. Detroit has sales promotions on most of their vehicles. Some have rebates of $6000 on $20,000 vehicles. When new vehicles sell this cheap, used car prices take the same proportionate price reduction.

No fool is going to pay $14,000 for a year old vehicle with 15,000 miles on it when a new one can be purchased for the same price.

Well, since I buy only used vehicles I hope you're right.

But this fool has neither 12K, 15K or 25K in cash lying around and I think THAT is the issue. It's much easier for people to come up with 5K and below and I believe that there will be more pressure on that market. Add in the fact that Car dealers aren't selling and thus are not taking trade-ins and I just don't know what will happen.

DAVID In Wisconsin · #11 12/26/08, 07:42 AM

Used prices are already creeping down. I'm searching vans right now. I'll pay several thousand less for a van this year than I did in '06.

J-jay · #12 12/26/08, 08:12 AM

All the car lots and the dealer lots are full and they are still sitting on the high prices. I went to a rental agency to buy a used car and they wanted a new price for cars with 30 k miles on them. On top of that they would not even negotiate. On my 99 Tarus I will reline the brakes and have the fluid changed in the transmission and bands adjusted, and drive it another 100k miles. Sooner or later the prices will have to come down.

Clove, what state are you in? I guess I need to shop around more.

THANKS FOR THIS THREAD.

Beeman · #13 12/26/08, 09:00 AM

Check your local banks and credit unions and other lenders. They have lists of repos they need to sell. You have to know what you're doing because they are as is and people having a car repo'd might not take the best care of it.

Gas is down and Americans like trucks so truck prices aren't dropping.

fantasymaker · #14 12/26/08, 09:01 AM

EVERYTHING is going down for a while but if a reccsion settles in and it looks like it will older used cars will go up.
Unless the government fouls up the economy with some sorta deal.
In short, sorta .....maybe.

ldc · #15 12/26/08, 10:39 AM

I've noticed in the ads for used cars in the paper that for Hondas and Toyotas, the prices are up. The thinking may be that they get better gas mileage, even tho' of late that price has come down. ldc

DaleK · #16 12/26/08, 10:56 AM

They SHOULD go down, but people's psychology will be what ends up deciding if they do or not. People do odd things.

You look at two identically-equipped vehicles here, one brand new and one 2 years old, and for the last several months the financing on the new ones has been so good that if you finance them both over the same term the new one will end up costing quite a bit less. Still people are passing up the new ones to buy used 2 and 3 year old cars on 5, 6, even 7 year loans because "everyone knows" used cars are always cheaper.

scorpian5 · #17 12/26/08, 11:16 AM

Do not buy from GM it only rewards them for making a crappy product that they cannot sell. Look at Ford they where smart and saved some money to keep going for now. I have only had two cars one used and one new. The used one i had a loan from a bank and the payments where close to the payments on my new one with the loan from Honda.

travlnusa · #18 12/26/08, 02:28 PM

In 2003 we bought a '01 Chrysler minivan with 30K for $11,500.

Yesterday we bought an '08 with 13K for $13,200.

seedspreader · #19 12/26/08, 03:11 PM

One thing about spring also is that the prices tend to go up when the tax refund checks start coming in.

Yvonne's hubby · #20 12/26/08, 04:05 PM

During the last serious economic depression, (the 30s) a lot of good vehicles wound up being parked in fence rows, never to be driven again simply coz folks couldnt afford to put the gas in them. Back in 68 a freind of mine and myself went together and bought a 31 international pickup that had suffered such a demise. We pulled it out of the fencerow, paid the owner our 10 bucks and drug it home. It took a bit of time for us to get it running again but basically all that was wrong with that truck was it was out of gas! Once we put all the needed hoses and rubber lines on it, cleaned up the carb, cleaned and set the points it fired up and ran perfect. The odometer showed less than 5000 miles. Used cars sure nuff were cheap in the thiries, I see no reason for them not to become cheap again once the new depression actually gets here.