If You Are Looking For A Used Car You Might Want To Wait

[2012Bearcat]

Elon Musk: Auto Loans Could Be Source of ‘Biggest Financial Crisis Ever’

The automotive market may be under stress as several experts call for a massive wave of repossessions in ...

www.theepochtimes.com

Used car market has been ridiculously high over the last few years. Obama screwed up the market with his "Cash For Clunkers" program and it has been a mess since. The Pandemic created the perfect storm, banks and the feds, as usual, further exasperated the problem with their lending practice and easy money policies. Now some of these banks are ignoring the "Golden Rule" of auto financing by allowing people multiple loans on multiple cars, that never works out well. When things get tight people tend to become very selfish, ignore their obligations and ignore the future consequences of their decisons. WIth all of that said, if things go as many think used car prices are about to drop like a rock.

 

[2012Bearcat]

Another sign

Rising car repossessions trend warning sign for economy, report says

The number of car repossessions across the United States is on the rise and expected to continue into the new year. Some industry experts say it is a sign of the economy.

www.foxbusiness.com

 

[22LR]

Not an Obama fan, but how did Cash for Clunkers screw things up?

I still have my Cash for Clunkers Toyota 12 years later. Got it new for $7500. Just sits there when it isn't loaned out to a friend. I drive it once in awhile to keep it lubed. Less than 11K miles on the thing.

The Asians I work with called it "Cash fol Crunkels".

 

[2012Bearcat]

Not an Obama fan, but how did Cash for Clunkers screw things up?

I still have my Cash for Clunkers Toyota 12 years later. Got it new for $7500. Just sits there when it isn't loaned out to a friend. I drive it once in awhile to keep it lubed. Less than 11K miles on the thing.

The Asians I work with called it "Cash fol Crunkels".

Removed 677K used cars from the market, you think that might of had an effect on the supply in the used car market?

 

[aix_xpert]

Sorry, but the current state of the used car market has nothing to do with the Cash 4 Clunkers program. This is a byproduct of the shift to vehicle electrification which has made "new" cars absurdly priced thus driving the middle class into the used car market.

 

[OUSOONER67]

Cars are going to stay expensive for one simple reason: Dealers and automakers are loving it​

• Car companies and dealers are enjoying fat profits and want to keep the supply of cars low.

https://news.yahoo.com/cars-going-stay-expensive-one-111500729.html

 

[JimmyBob]

Been drivin' the same "used" car for 37 yrs., no reason to change now.

 

[windriverrange]

Been drivin' the same "used" car for 37 yrs., no reason to change now.

Is that you Jed Clampett?

 

[purkey]

don't think they are going to drop anytime soon, but I do see dealers making deals on new ones where they didn't have to a few months ago. When the new market slows down, then prices on used will probably drop as well. Hard to predict supply and demand right now. These dealers are nothing but prostitutes and will sell their soul when they have to. Prices on used cars, especially exotics, are up about 20% before the pandemic. Haven 't seen any of that dropping.

 

[2012Bearcat]

Cars are going to stay expensive for one simple reason: Dealers and automakers are loving it​

• Car companies and dealers are enjoying fat profits and want to keep the supply of cars low.

https://news.yahoo.com/cars-going-stay-expensive-one-111500729.html

I don't think people understand how used car supplies effect the new car market. Currently it's cheaper to buy a new car than it is a used car on a monthly basis. When the banks start releasing repossessions to auctions, used car pries will drop, making used cars cheaper to own for consumers. That in turn will cause the new car market to change. It will be interesting to see how the banks handle the rise in repossessions.

 

[Sunburnt Indian]

My local Kia dealer just offered just over $17,000 for wife's 2017 Jeep Renegade with 43,000 miles trade for new Kia. End of 2017 we paid just over $18,000 for the Renegade. We'll keep the like new Renegade.

 

[2012Bearcat]

My local Kia dealer just offered just over $17,000 for wife's 2017 Jeep Renegade with 43,000 miles trade for new Kia. End of 2017 we paid just over $18,000 for the Renegade. We'll keep the like new Renegade.

My daughter in law, this weekend, traded her 2015 Toyota Rav 4 her parents bought new in 2015 for around 20K. She just traded it in with 99K miles and got 15K for it. To say the price of used cars is screwed up is an understatement.

 

[aix_xpert]

Car prices will go down when next year's recession hits. The individual saving rate is as low as its been since 2005 completely eliminating the savings spike generated by the pandemic. This rate of spend can't keep up and thus the demand will fall and prices will along with it.

Personal Saving Rate

Graph and download economic data for Personal Saving Rate (PSAVERT) from Jan 1959 to Mar 2024 about savings, personal, rate, and USA.

fred.stlouisfed.org

United States Personal Savings Rate

Household Saving Rate in the United States decreased to 3.60 percent in February from 4.10 percent in January of 2024. This page provides - United States Personal Savings Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

tradingeconomics.com

 

[MadelynnPerez]

Hey everyone, I'm new to the forum and just wanted to chime in on the used car market. It's been a real mess lately, and I totally get what you're saying about the lending practices and easy money policies of the banks and feds. It's like they never learn from their mistakes. And don't even get me started on the "Cash for Clunkers" program, that was a disaster. But let's not lose hope, there are still ways to score a good deal on a used car. Have you guys looked into the cheapest states to buy cars? It might be worth doing some research on. Sometimes you can find great deals in places like Texas, Florida, or Arizona. And with the market predicted to drop soon, it could be the perfect time to snag a steal. So let's keep the conversation going and share our tips and tricks for navigating the crazy world of used car buying.

 

[Sunburnt Indian]

Car prices will go down when next year's recession hits. The individual saving rate is as low as its been since 2005 completely eliminating the savings spike generated by the pandemic. This rate of spend can't keep up and thus the demand will fall and prices will along with it.

Personal Saving Rate

Graph and download economic data for Personal Saving Rate (PSAVERT) from Jan 1959 to Mar 2024 about savings, personal, rate, and USA.

fred.stlouisfed.org

United States Personal Savings Rate

Household Saving Rate in the United States decreased to 3.60 percent in February from 4.10 percent in January of 2024. This page provides - United States Personal Savings Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

tradingeconomics.com

I'm about to hit my Barclay Bank Saving as I did last year so I can eat. Prior to last year, last time I hit Barclay Saving was 2016 so I could upgrade a master bath shower. Wife's 2017 Jeep Renegade is scheduled for payoff in June. I hope to slow down on hitting my savings while saddled with Joe's inflationary tidal wave.

We got a bang-up deal on the left over Jeep purchesed in March, 2018.

 

[Tulsaaggieson]

Sorry, but the current state of the used car market has nothing to do with the Cash 4 Clunkers program. This is a byproduct of the shift to vehicle electrification which has made "new" cars absurdly priced thus driving the middle class into the used car market.

^^^^^^
This.

As more electronic vehicles come on the market, (that no one wants) it reduces the amount of gas vehicles on the market (that everyone wants). This means less supply of the gas vehicles, and we know less supply with high demand will inflate the cost. The middle class cannot afford to buy an electric vehicle at 50-100K. This means the used car market is the hot market as buying new vehicle prices have also gone up because of less supply. Problem is used vehicles are always someone else's problem and that is what you are buying. However, the price of the used vehicle is still cost affordable to the middle class, but getting loans on a used vehicle is not great for the banks.

Me I keep driving the same car I have had since 2009. Found a great mechanic, that prices me fair, and I keep my car on the road for less than what I would have to pay to buy a new or used car.

Moral of the story, always find a good mechanic, they will do more to save your pocketbook than anyone else.

 

[LAY THE WOODY]

A good friend of mine has worked for ancira/Winton down here in San Antone for 30 years. The used car market has been on fire for that long. Independent lots are making a killing also. Auctions down here are fed by Mexican nationals.

 

[JimmyBob]

Me I keep driving the same car I have had since 2009. Found a great mechanic, that prices me fair, and I keep my car on the road for less than what I would have to pay to buy a new or used car.

Moral of the story, always find a good mechanic, they will do more to save your pocketbook than anyone else.

Bingo!! I'm into year 37 for my '86 (oil boom) 944. It's all about a good mechanic and regular maintenance.