When did used cars get so expensive? (1 Viewer)

[The Ref]

A year ago I bought a new car off a lease. The dealer (A good pal of mine) ended up giving me an extra $1,500 for the leased car because the buy out value was $1,700 less then what the current wholesale price was. Everyone wants a used car at 40% off so the prices are up.

 

[St. Louis Bob]

Right after Cash For Clunkers.

Cash for clunkers drives up used car prices.

That was short-lived and never had an impact on the type of car the OP is interested in.

Wrong x 2

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

No, it only ruined some peoples lives. Like my GB who had a used car lot for 23 years. He is very fiscally responsible, so much so he put 3 kids through college without taking out a loan. Then when his business tanked because he couldn't get any decent used cars to sell thanks to CfC. He took a home equity loan out on his paid for, middle class house, and still went out of business!! He lost his house two months ago and now has to live with one of his kids! #### off

 

[Andy Dufresne]

No, it only ruined some peoples lives. Like my GB who had a used car lot for 23 years. He is very fiscally responsible, so much so he put 3 kids through college without taking out a loan. Then when his business tanked because he couldn't get any decent used cars to sell thanks to CfC. He took a home equity loan out on his paid for, middle class house, and still went out of business!! He lost his house two months ago and now has to live with one of his kids! #### off

And boom goes the dynamite.

 

[Major]

Right after Cash For Clunkers.

Cash for clunkers drives up used car prices.

That was short-lived and never had an impact on the type of car the OP is interested in.

Wrong x 2

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

The C4C hate is comical. It was probably one of the best govt run programs in recent memory and people find ways to throw stones. Helped a fledgling car industry and enabled the consumer buy a better fuel efficient vehicle. Not sure what the problem is here. Sure it took a few used cars off the market (POS cars valued at less than $3500-4500) but that doesn't have much of an impact on the used cars the OP is looking for. Quit your whining.

 

[Walton Goggins]

Recently took in my Honda to get a routine inspection. Walked next door to used car lot and talked to the salesman and told him I wasn't in the market for another Honda (one month left til paid off) but asked him about slightly used Civics or any cars that got great mileage. He said they are rare when someone trades them in cause most owners know they can get hundreds or thousands of miles on them but when they do, just about all of them are sold the same day they are put out on the lot and at a premium. He said they never have to attempt to sell them to people who are looking for a used car and sell itself. Easy money is how he put it.

I ended up buying my Honda new because the used ones (that were under 60k miles) were only around 5k at most less than a brand new one.

 

[Andy Dufresne]

The C4C hate is comical. It was probably one of the best govt run programs in recent memory and people find ways to throw stones. Helped a fledgling car industry and enabled the consumer buy a better fuel efficient vehicle. Not sure what the problem is here. Sure it took a few used cars off the market (POS cars valued at less than $3500-4500) but that doesn't have much of an impact on the used cars the OP is looking for. Quit your whining.

Oh boy.

 

[Sinn Fein]

The C4C hate is comical. It was probably one of the best govt run programs in recent memory and people find ways to throw stones. Helped a fledgling car industry and enabled the consumer buy a better fuel efficient vehicle. Not sure what the problem is here. Sure it took a few used cars off the market (POS cars valued at less than $3500-4500) but that doesn't have much of an impact on the used cars the OP is looking for. Quit your whining.

Oh boy.

The impact was a little more subtle - Cash 4 Clunkers really removed an entire sub-set of used vehicles from the market. As a result it pushed all dealers up a level in the vehicles they stocked - creating more demand at auctions for the $10-15,000 car - which raised the whole sale prices, which raised the retail prices. As a program C4C really did not help much, since it did not generate much in the way of new sales - really just pulled sales forward.Again, the bigger issue has to do with the drop in supply of 2008 vehicles as a result of the drop in new vehicle sales in 2008/2009. In particular the huge drop in fleet sales, which turnover into used vehicle sales faster.For the next 12 months or so - you will get better comparative value buying a new vehicle than you will a used vehicle - the price difference will be so compressed that even with the initial depreciation hit - buyers will move towards new car sales.Then, the pendulum will swing back to better value in used cars. Its the cyclical nature of the business.

 

[St. Louis Bob]

Right after Cash For Clunkers.

Cash for clunkers drives up used car prices.

That was short-lived and never had an impact on the type of car the OP is interested in.

Wrong x 2

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

The C4C hate is comical. It was probably one of the best govt run programs in recent memory and people find ways to throw stones. Helped a fledgling car industry and enabled the consumer buy a better fuel efficient vehicle. Not sure what the problem is here. Sure it took a few used cars off the market (POS cars valued at less than $3500-4500) but that doesn't have much of an impact on the used cars the OP is looking for. Quit your whining.

You have no idea what you are talking about. I hope the next awesome program they come out with causes you to lose everything you own. screw you too

 

[radballs]

Right after Cash For Clunkers.

/thread

 

[The Commish]

Right after Cash For Clunkers.

Cash for clunkers drives up used car prices.

That was short-lived and never had an impact on the type of car the OP is interested in.

Not until they used it as an excuse to jack up the price on ALL used cars.

 

[Sinn Fein]

Right after Cash For Clunkers.

Cash for clunkers drives up used car prices.

That was short-lived and never had an impact on the type of car the OP is interested in.

Not until they used it as an excuse to jack up the price on ALL used cars.

Its not an excuse - it does have an impact on all cars. The cost to acquire acquire used vehicle inventory is rising across all price points.This is what I do for a living - I have laid out a couple of reason why used car prices are rising, and unlikely to go down soon. It has nothing to do with price gouging. It all really boils down to good ol' supply/demand.

 

[Juxtatarot]

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

The C4C hate is comical. It was probably one of the best govt run programs in recent memory and people find ways to throw stones. Helped a fledgling car industry and enabled the consumer buy a better fuel efficient vehicle. Not sure what the problem is here. Sure it took a few used cars off the market (POS cars valued at less than $3500-4500) but that doesn't have much of an impact on the used cars the OP is looking for. Quit your whining.

I wasn't in favor of Cash for Clunkers. I think it was a waste of taxpayer money and often just made people buy cars earlier -- they would have bought them eventually regardless. Certainly, at the time, it caused there to be a shortage of "clunkers" on the market. It also temporarily had other impacts on the market. However, to say that it is still having significant impact today is crazy.

 

[Sarnoff]

Right after Cash For Clunkers.

Yep

“This is not the best time in the world to buy a new car.” Or a used one. “I have been to three auctions this week. Bought zero cars. That has never happened to me in 10+ years in the auto auction business. Of course this is tax season. But the supply and quality of vehicles are simply atrocious at the moment and the prices are sky high.”

 

[Juxtatarot]

Right after Cash For Clunkers.

Cash for clunkers drives up used car prices.

That was short-lived and never had an impact on the type of car the OP is interested in.

Not until they used it as an excuse to jack up the price on ALL used cars.

Its not an excuse - it does have an impact on all cars. The cost to acquire acquire used vehicle inventory is rising across all price points.This is what I do for a living - I have laid out a couple of reason why used car prices are rising, and unlikely to go down soon. It has nothing to do with price gouging. It all really boils down to good ol' supply/demand.

But there are so many reasons for all this besides Cash for Clunkers. The economy has many people and businesses being careful with their money and hanging onto cars longer.

 

[Insein]

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

The C4C hate is comical. It was probably one of the best govt run programs in recent memory and people find ways to throw stones. Helped a fledgling car industry and enabled the consumer buy a better fuel efficient vehicle. Not sure what the problem is here. Sure it took a few used cars off the market (POS cars valued at less than $3500-4500) but that doesn't have much of an impact on the used cars the OP is looking for. Quit your whining.

I wasn't in favor of Cash for Clunkers. I think it was a waste of taxpayer money and often just made people buy cars earlier -- they would have bought them eventually regardless. Certainly, at the time, it caused there to be a shortage of "clunkers" on the market. It also temporarily had other impacts on the market. However, to say that it is still having significant impact today is crazy.

Two things it did that negatively impacted the car industry. One it artificially got people to buy a vehcile earlier than they were ready too. Thus it inflated the numbers for that year and the subsequent dead period afterwards showed that. Two instead of dealers keeping those trade-ins and selling them to earna profit, they gave them to the government for destruction and received a credit that was not always on par with what they would have received in the open market. So the result was people trading in perfectly usable cars for new ones and removing them from the market instead of having them go to other buyers who don't buy new. So yea, it had a pretty significant impact. Ask any local car dealer used or otherwise how it worked out for them if they're still around.

 

[Sinn Fein]

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

The C4C hate is comical. It was probably one of the best govt run programs in recent memory and people find ways to throw stones. Helped a fledgling car industry and enabled the consumer buy a better fuel efficient vehicle. Not sure what the problem is here. Sure it took a few used cars off the market (POS cars valued at less than $3500-4500) but that doesn't have much of an impact on the used cars the OP is looking for. Quit your whining.

I wasn't in favor of Cash for Clunkers. I think it was a waste of taxpayer money and often just made people buy cars earlier -- they would have bought them eventually regardless. Certainly, at the time, it caused there to be a shortage of "clunkers" on the market. It also temporarily had other impacts on the market. However, to say that it is still having significant impact today is crazy.

I'll try this one more time. Within the auto industry, you have several levels of used cars ~ <$5000, <$10,000, <$20,000, $20,000+

The cash for clunkers program took a lot of <$5,000 inventory out of circulation - that was the part that the dealers did not like - had to scrap the cars.

So, dealers who traditionally may have had a segment of their vehicles in the <$5,000 bucket, now have much fewer cars available in that range. So they are moving up to the $5,000-$10,000 range cars. That creates increased demand and upward price pressure on those vehicles as you have more dealers looking in that range. These mid-range dealers are then looking to bump up to the next level - creating the same problems up each level.

The problem is compounded because of the downturn in the new car sales beginning in the Fall of 2008. About a 50% reduction in new car sales, which leads to a reduction in the available supply of used vehicles. The most popular selling used vehicles are traditionally 3 models years from the present year - lots of reasons, none particularly relevant to this discussion. So, for the late model cars, we have a tremendous reduction in supply, and an increase in demand from dealers moving up the food chain, which leads to shortages of popular vehicles, and a bidding war by the dealers to acquire those cars, which leads to increased prices.

This will last for about another 9-12 months, at which point consumer demand will have shifted to new car sales (because the difference in price will push consumers to new rather than used vehicles), reducing the consumer demand for these used vehicles, and supply will begin to rise again, and the pricing value of used cars will be greater.

SO, lots of valid reasons for the increase in cost. Cash for clunkers is playing a significant role in this price increase across all levels of cars. The reduced new car sales in late 2008/early 2009 is the other big factor. (The current new car supply problem is not a big factor in the used car prices today - it may be in about 2 or so years, depending on how big a reduction in new car sales. Right now I am not anticipating a hige dip in sales - mostly because consumers will switch from used to new, artificially driving up new vehicle sales)

 

[Sarnoff]

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

The C4C hate is comical. It was probably one of the best govt run programs in recent memory and people find ways to throw stones. Helped a fledgling car industry and enabled the consumer buy a better fuel efficient vehicle. Not sure what the problem is here. Sure it took a few used cars off the market (POS cars valued at less than $3500-4500) but that doesn't have much of an impact on the used cars the OP is looking for. Quit your whining.

I wasn't in favor of Cash for Clunkers. I think it was a waste of taxpayer money and often just made people buy cars earlier -- they would have bought them eventually regardless. Certainly, at the time, it caused there to be a shortage of "clunkers" on the market. It also temporarily had other impacts on the market. However, to say that it is still having significant impact today is crazy.

Supply and Demand

 

[Wingnut]

I havent had a car payment in over 5 years, but now my car is nearing 150k miles, and its a Pontiac, which means Ill be lucky if it lasts another 10k miles.

Looking around lately, Ive found that good deals can be found on cars with 40-60 thousand miles, but rarely will you find a good deal on something with less than 40k unless its being sold by a private seller.

 

[Juxtatarot]

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

The C4C hate is comical. It was probably one of the best govt run programs in recent memory and people find ways to throw stones. Helped a fledgling car industry and enabled the consumer buy a better fuel efficient vehicle. Not sure what the problem is here. Sure it took a few used cars off the market (POS cars valued at less than $3500-4500) but that doesn't have much of an impact on the used cars the OP is looking for. Quit your whining.

I wasn't in favor of Cash for Clunkers. I think it was a waste of taxpayer money and often just made people buy cars earlier -- they would have bought them eventually regardless. Certainly, at the time, it caused there to be a shortage of "clunkers" on the market. It also temporarily had other impacts on the market. However, to say that it is still having significant impact today is crazy.

I'll try this one more time. Within the auto industry, you have several levels of used cars ~ <$5000, <$10,000, <$20,000, $20,000+

The cash for clunkers program took a lot of <$5,000 inventory out of circulation - that was the part that the dealers did not like - had to scrap the cars.

So, dealers who traditionally may have had a segment of their vehicles in the <$5,000 bucket, now have much fewer cars available in that range. So they are moving up to the $5,000-$10,000 range cars. That creates increased demand and upward price pressure on those vehicles as you have more dealers looking in that range. These mid-range dealers are then looking to bump up to the next level - creating the same problems up each level.

The problem is compounded because of the downturn in the new car sales beginning in the Fall of 2008. About a 50% reduction in new car sales, which leads to a reduction in the available supply of used vehicles. The most popular selling used vehicles are traditionally 3 models years from the present year - lots of reasons, none particularly relevant to this discussion. So, for the late model cars, we have a tremendous reduction in supply, and an increase in demand from dealers moving up the food chain, which leads to shortages of popular vehicles, and a bidding war by the dealers to acquire those cars, which leads to increased prices.

This will last for about another 9-12 months, at which point consumer demand will have shifted to new car sales (because the difference in price will push consumers to new rather than used vehicles), reducing the consumer demand for these used vehicles, and supply will begin to rise again, and the pricing value of used cars will be greater.

SO, lots of valid reasons for the increase in cost. Cash for clunkers is playing a significant role in this price increase across all levels of cars. The reduced new car sales in late 2008/early 2009 is the other big factor. (The current new car supply problem is not a big factor in the used car prices today - it may be in about 2 or so years, depending on how big a reduction in new car sales. Right now I am not anticipating a hige dip in sales - mostly because consumers will switch from used to new, artificially driving up new vehicle sales)

Numbers according to an Edmunds.com article.

Nearly 690,000 vehicles were sold during the Cash for Clunkers program, officially known as CARS, but Edmunds.com analysts calculated that only 125,000 of the sales were incremental. The rest of the sales would have happened anyway, regardless of the existence of the program.

In 2010, there were apparently 36 million used cars sold.I understand and appeciate your points and your knowledge of the market. However, for the market these days, I think you are overestimating the impact of Cash for Clunkers while underestimating general economic factors.

 

[Sinn Fein]

Numbers according to an Edmunds.com article.

Nearly 690,000 vehicles were sold during the Cash for Clunkers program, officially known as CARS, but Edmunds.com analysts calculated that only 125,000 of the sales were incremental. The rest of the sales would have happened anyway, regardless of the existence of the program.

In 2010, there were apparently 36 million used cars sold.I understand and appeciate your points and your knowledge of the market. However, for the market these days, I think you are overestimating the impact of Cash for Clunkers while underestimating general economic factors.

A couple of points - there were 12 million used car sales by franchised dealers in 2010. These are the dealers directly impacted by cash for clunkers. I deal with dealers every day, and I have yet to run into one who thinks cash for clunkers helped their business.

If you read my posts you will see that this combined with supply and demand factors for late-model cars is the reason for the price increase.

My point is that the price increase is a rational response to these fundamental economic factors - low supply, high demand. Cash for clunkers contributes to the low supply - though not as much as the Crash in new car sales in 2008. With low new vehicle sales in 2008/2009, there are fewer used units available today - by about 50%. You can't build a used car. This will continue for the next 9-12 months.

This is not all doom and gloom for the dealers though - it has, and will continue to, shift sales from used into new vehicle sales. A prolonged disruption in new vehicle supply may have an impact on new vehicle sales, but it has not manifested itself yet. A spike in gas will affect sales, but mostly shifting to smaller cars - and the OEMs are better equipped to handle this shift today than they were a few years ago. The only other cloud hanging out there is a potential downturn in the economy - or sudden interest rate increase in loans.

Two years ago, dealers, and many folks in the auto industry were scared. Today, those that survived, are comfortable, and cautiously optimistic. The rise in used vehicle prices is in in the ordinary course of business as we ride through the ebbs and flow of used vehicle inventory. In a year, you will see that used car prices will be more value-centric.

 

[loose circuits]

one other advantage to having a car that is paid for is that you don't have to carry full coverage insurance so it saves a lot of money on on that side of things as well

 

[Juxtatarot]

Numbers according to an Edmunds.com article.

Nearly 690,000 vehicles were sold during the Cash for Clunkers program, officially known as CARS, but Edmunds.com analysts calculated that only 125,000 of the sales were incremental. The rest of the sales would have happened anyway, regardless of the existence of the program.

In 2010, there were apparently 36 million used cars sold.I understand and appeciate your points and your knowledge of the market. However, for the market these days, I think you are overestimating the impact of Cash for Clunkers while underestimating general economic factors.

A couple of points - there were 12 million used car sales by franchised dealers in 2010. These are the dealers directly impacted by cash for clunkers. I deal with dealers every day, and I have yet to run into one who thinks cash for clunkers helped their business.

If you read my posts you will see that this combined with supply and demand factors for late-model cars is the reason for the price increase.

My point is that the price increase is a rational response to these fundamental economic factors - low supply, high demand. Cash for clunkers contributes to the low supply - though not as much as the Crash in new car sales in 2008. With low new vehicle sales in 2008/2009, there are fewer used units available today - by about 50%. You can't build a used car. This will continue for the next 9-12 months.

This is not all doom and gloom for the dealers though - it has, and will continue to, shift sales from used into new vehicle sales. A prolonged disruption in new vehicle supply may have an impact on new vehicle sales, but it has not manifested itself yet. A spike in gas will affect sales, but mostly shifting to smaller cars - and the OEMs are better equipped to handle this shift today than they were a few years ago. The only other cloud hanging out there is a potential downturn in the economy - or sudden interest rate increase in loans.

Two years ago, dealers, and many folks in the auto industry were scared. Today, those that survived, are comfortable, and cautiously optimistic. The rise in used vehicle prices is in in the ordinary course of business as we ride through the ebbs and flow of used vehicle inventory. In a year, you will see that used car prices will be more value-centric.

I agree with you on everything except the lingering impact of Cash for Clunkers. The OP is looking at something like an '09 Corolla. How much cheaper would he be able to buy one for if it weren't for Cash for Clunkers? 1%? 5%? 20%? I know it's a guess but it will give me an idea on how much of an impact you think it still has. Others (not you) have posted it as a primary reason. I think it's zero or, perhaps, less than 1%.

 

[FUBAR]

Always get new cars leased. I have a brand new car every three years and never worry about maintenance. Lease deals are great now, just got a new Lexus for what it would cost to own a lower tier model. Sure I'll never "own" it, but who wants to drive an old premium car when you can drive a brand new one?

LOOK AT ME, I'M MADE OF MONEY!!!11For those of us who don't like throwing money down the drain and don't feel the need to have a new car every few years, buying a new car makes a lot more sense.

I don't want to get into a huge lease vs. buy debate. But, the flip side here is your new car just lost a significant chunk of its value when you drove it off the lot. So you did throw money down the drain on the purchase, just in a different way.There are pros and cons to both, and it really depends on your situation.

I was always a buy a car guy, and I drove my last car for over 10 years and put 160,000 miles on it. But the lease deal I found was too good to pass up for me.

You got a good deal, but we've had the van for about 7 years this summer. Ends up being about the same as your $219 per month. Except that I have a car still and could sell it for $9k according to KBB. Granted, you've been able to move on to another car in this time. And as already mentioned, my insurance is cheaper because of it.

You also make the point as to why I went used for the next one.

 

[Drunken Cowboy]

I bought a civic a year and a half ago. It was only a couple of grand more to go new vs used with around 30k miles. New car loan 1.9%. Used car loan 7%. The new car ended up being cheaper.

 

[STEADYMOBBIN 22]

Owning a car beyond its payment years is a better decision if I only used to car for going to/from work, driving around etc. My car, however, is part of my job. I meet clients and often take them to lunch with my car. My car is part of my appearance.I purposely choose Lexus because it’s in the "nice car" range; it says that I'm not cheap but not throwing money away on a 80k+ car.

How do you get around the mileage thing? Don't most leases penalize you if you go over a predetermined amount of miles?

 

[firstseason1988]

Prices are up on small, gas-efficient vehicles right now. Conversely, if you are in the market for a used SUV, it's a good time to buy. Same thing happened in 2008 when gas prices were high. Supply and demand.

Yes, I got a sweet deal on a 2008 F-150 in 2008 when gas was $4 a gallon. I thought at the time there was no way our economy could sustain those gas prices and if they did I just wouldn't drive my truck so much. Now that gas is approaching that price again, my truck will be sitting more. On a side note, I also made adjustments to more conservative investments in 2008 which has paid off immensely. I just did the same thing again, maybe I will get lucky again.

 

[Sand]

I'm looking for a smaller, reliable car (think Honda Civic or Toyota Corolla) that's only a couple of years old and has less than 30,000 miles on it. What do I find? Well, most of these used cars are only a couple grand less than a brand spankin' new one! IMO, it really makes no sense to buy the used car unless you are extremely strapped for money. The new car is the better value. You will get more reliable miles out of it and have a later yeared car when you go to resale it at some point.

FWIW, this car isn't for me.

:rantover:

They up the prices for tax refund time. Best time to buy is at the end of the year.

Stories coming out are saying that tax refund money is well up this year. It should be no surprise that a lot of this money is going to cars and driving prices up.

 

[Mitch Robbins]

Right after Cash For Clunkers.

Cash for clunkers drives up used car prices.

That was short-lived and never had an impact on the type of car the OP is interested in.

Wrong x 2

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

No, it only ruined some peoples lives. Like my GB who had a used car lot for 23 years. He is very fiscally responsible, so much so he put 3 kids through college without taking out a loan. Then when his business tanked because he couldn't get any decent used cars to sell thanks to CfC. He took a home equity loan out on his paid for, middle class house, and still went out of business!! He lost his house two months ago and now has to live with one of his kids! #### off

Whole lot of ignorance in juxtatarot's post. Obviously he's clueless.

A lot of used car lots here went under after that program.

 

[Mitch Robbins]

Right after Cash For Clunkers.

Cash for clunkers drives up used car prices.

That was short-lived and never had an impact on the type of car the OP is interested in.

Wrong x 2

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

The C4C hate is comical. It was probably one of the best govt run programs in recent memory and people find ways to throw stones. Helped a fledgling car industry and enabled the consumer buy a better fuel efficient vehicle. Not sure what the problem is here. Sure it took a few used cars off the market (POS cars valued at less than $3500-4500) but that doesn't have much of an impact on the used cars the OP is looking for. Quit your whining.

Another ignorant post.

 

[Juxtatarot]

Right after Cash For Clunkers.

Cash for clunkers drives up used car prices.

That was short-lived and never had an impact on the type of car the OP is interested in.

Wrong x 2

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

No, it only ruined some peoples lives. Like my GB who had a used car lot for 23 years. He is very fiscally responsible, so much so he put 3 kids through college without taking out a loan. Then when his business tanked because he couldn't get any decent used cars to sell thanks to CfC. He took a home equity loan out on his paid for, middle class house, and still went out of business!! He lost his house two months ago and now has to live with one of his kids! #### off

Whole lot of ignorance in juxtatarot's post. Obviously he's clueless.

A lot of used car lots here went under after that program.

It was also during the worst economic slump since the Great Depression. We're talking about 690,000 cars which is about 2% of annual used car sales. People are using this as a scapegoat.

 

[Doctor Detroit]

Back to the OP question...

I probably would buy new these days if I was looking for a low mileage vehicle. You can talk them down on financing and I got a 2% 48 month loan about ten months ago. I refuse to go over 48 months, that's just my rule because I do not like paying on a vehicle once the factory warranty runs out. I actually bought the extended warranty for the vehicle (yeah people have strong feelings on both sides but I thought it was a decent deal) because this makes me more likely to keep the vehicle longer, and it adds more to the resale because I can transfer it.

When I moved recently I needed a second vehicle and preferably one with good gas mileage. I got lucky and bought when the gas prices were still $2.50 or so because I think the vehicle I bought would be more expensive today based on it's 35-38 mpg return. It's a 2008 but had 80k miles on it, but the guy who had it was driving from Cape May NJ to Philadelphia every day (70 miles one way). So the dealership threw some new tires and brakes on it and it looked pretty good except the 1000 rock chips on the hood. It is very basic transportation with a stereo, AC, and power windows/locks.

I was doing research for a month with three or four models in mind, and got exactly what I wanted. I think being patient and doing research will always pay off with used car purchasing and there are deals to be had. Great deals like the 1980s? No. Haggling and negotiating like a market in the Middle East? No. But if you have a price threshold, know what you want and are willing to look a round for a few weeks you'll get what you want and get it for what you want to pay.

 

[Fennis]

Right after Cash For Clunkers.

Cash for clunkers drives up used car prices.

That was short-lived and never had an impact on the type of car the OP is interested in.

Wrong x 2

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

No, it only ruined some peoples lives. Like my GB who had a used car lot for 23 years. He is very fiscally responsible, so much so he put 3 kids through college without taking out a loan. Then when his business tanked because he couldn't get any decent used cars to sell thanks to CfC. He took a home equity loan out on his paid for, middle class house, and still went out of business!! He lost his house two months ago and now has to live with one of his kids! #### off

 

[Fennis]

Right after Cash For Clunkers.

Cash for clunkers drives up used car prices.

That was short-lived and never had an impact on the type of car the OP is interested in.

Wrong x 2

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

No, it only ruined some peoples lives. Like my GB who had a used car lot for 23 years. He is very fiscally responsible, so much so he put 3 kids through college without taking out a loan. Then when his business tanked because he couldn't get any decent used cars to sell thanks to CfC. He took a home equity loan out on his paid for, middle class house, and still went out of business!! He lost his house two months ago and now has to live with one of his kids! #### off

wait, that wasn't very funny.

 

[Fennis]

The car market had dried up due to the financial crisis and recession so a lot of people who wanted to buy cars waited. Those people are now purchasing, causing the inventory to be lower.

 

[No. 16]

Always get new cars leased. I have a brand new car every three years and never worry about maintenance. Lease deals are great now, just got a new Lexus for what it would cost to own a lower tier model. Sure I’ll never “own” it, but who wants to drive an old premium car when you can drive a brand new one?

When you want to have money for retirement.

 

[Courtjester]

I think it depends on what you are looking for.

Hondas are always up there as far as used. You can get a new Kia for next to nothing, but I bet after 100,000 miles that vehicle will have zero trade in value.

I just bought a loaded 2009 Mitsubishi Lancer GTS with 18K miles on it. The dealer was trying to steer me to the new ones, but the problem was getting the car with all the add ons and the color that the 09 had, it was going to run me $6,000 more for the 2011. My wife and I have excellent credit, so the rate we were getting used vs the rate on the new one didn't justify the $6,000 more. Plus with the 09 we still have 3-4 years remaining on the warranty, so it just didn't make sense for us, but I can see where some of you are coming from.

 

[St. Louis Bob]

Right after Cash For Clunkers.

Cash for clunkers drives up used car prices.

That was short-lived and never had an impact on the type of car the OP is interested in.

Wrong x 2

Right! We're doomed from Cash for Clunkers forever!!! Damn that government!!

No, it only ruined some peoples lives. Like my GB who had a used car lot for 23 years. He is very fiscally responsible, so much so he put 3 kids through college without taking out a loan. Then when his business tanked because he couldn't get any decent used cars to sell thanks to CfC. He took a home equity loan out on his paid for, middle class house, and still went out of business!! He lost his house two months ago and now has to live with one of his kids! #### off

Whole lot of ignorance in juxtatarot's post. Obviously he's clueless.

A lot of used car lots here went under after that program.

It was also during the worst economic slump since the Great Depression. We're talking about 690,000 cars which is about 2% of annual used car sales. People are using this as a scapegoat.

Right. Plus you are getting rid of inventory. PLUS you get people to buy new cars instead of used cars. During that time my GB was selling new cars for a local dealer. They were selling over 100 cars a day. They were selling so many cars that they rented the parking lot at Kmart to handle all of the volume. There are/were a lot of flaws with CfC but the biggest one is taking money from a taxpayer to put that same taxpayer out of business. Hell lets just nuke Detroit, think of all the construction business it will create!!!!

 

[fightingillini]

I guess it depends on what your buying. I can clearly see people wanting to buy used cars or certified preowned cars and not wanting to pay new car prices due to the recession....thus driving up the used car prices.

From what I have seen, this is true in the 15-20K price range for a used car. I just bought a certified preowned 2008 Acura RL for 32K all-in.....has only 23K miles on it and looked brand new......this car was about 52K new. I also looked at an Infiniti M35 and a Lexus GS350 certfied (all had mileage in the 35-40K range), and the prices were anywhere between 29-35K (before taxes and fees) for cars that were in the low 50s new.

So this doesn't exist IMO for the midsize luxury sedan segment.

 

[eoMMan]

FWIW, the person in question ending up buying a new 2011 Corrolla LE. They got a great deal on it ($17K before taxes, trade-in, etc. etc.) and they are very happy now.

 

[Insein]

FWIW, the person in question ending up buying a new 2011 Corrolla LE. They got a great deal on it ($17K before taxes, trade-in, etc. etc.) and they are very happy now.

Who cares about the OP. This is a political rant/#####fest now. Your OP is irrelevant.

 

[eoMMan]

FWIW, the person in question ending up buying a new 2011 Corrolla LE. They got a great deal on it ($17K before taxes, trade-in, etc. etc.) and they are very happy now.

Who cares about the OP. This is a political rant/#####fest now. Your OP is irrelevant.

My bad.

 

[flapgreen]

People on Craigslist crack me up listing cars for retail value and acting like it's a great deal.

 

[The Ref]

People on Craigslist crack me up listing cars for retail value and acting like it's a great deal.

I love the non dealer adds that you call and then they tell you to come down to a "car lot". Then they promise the price as advertised, but they have a 'car fee" a "dealer fee" and a "I think your stupid" fee.

 

[Riversco]

I'm looking for a smaller, reliable car (think Honda Civic or Toyota Corolla) that's only a couple of years old and has less than 30,000 miles on it. What do I find? Well, most of these used cars are only a couple grand less than a brand spankin' new one! IMO, it really makes no sense to buy the used car unless you are extremely strapped for money. The new car is the better value. You will get more reliable miles out of it and have a later yeared car when you go to resale it at some point.FWIW, this car isn't for me.:rantover:

Does it matter? If cars are very slow to depreciate, that means you can buy used, drive it for 2-3 years, then resell it. You get most of your money back and can upgrade to a newer used car much easier, right?

 

[flapgreen]

Thinking about getting a used midsized suv sometime next year. Any of you guys own one? Not really looking to pay over 15.

 

[flapgreen]

People on Craigslist crack me up listing cars for retail value and acting like it's a great deal.

I love the non dealer adds that you call and then they tell you to come down to a "car lot". Then they promise the price as advertised, but they have a 'car fee" a "dealer fee" and a "I think your stupid" fee.

 

[Dickies]

I know the thread has devolved to political #####ing and moaning, but if you're looking at Civics and Corollas, look at the 100k cars that have had the 90-100k major service already done. You will easily get another 100-150k out of the cars with just basic routine maintenance and 100k mileage scares a lot of people so I think the price takes a significant drop. I had a 96 Integra that I bought for $4000 that had 110k on it. Drove it up to 160k over 6 years and sold it for $3000 a year ago. I bought a '05 Accord with 120k on it at the same time I sold my Integra and paid $9000. It is fully loaded (leather, V6, navigation) and drives like a brand new car still at 130k. Cars are much more reliable than in the past, and just because a car has higher mileage doesn't mean that it is a bad car. Just be careful when you buy and I find buying from a private party WAY better than from a dealer since they know the car's history and should have the maintenance history of the car as well.

 

[flapgreen]

Yep. I'll take a single owner private party car with higher miles any day over one from a dealer with lower miles.

 

[Nugget]

Yep. I'll take a single owner private party car with higher miles any day over one from a dealer with lower miles.

I disagree.How many financing options does a private party offer? Who looked over the car and is providing the warranty? Why is the private party selling it? What is he required by law to disclose?

 

[Dickies]

Yep. I'll take a single owner private party car with higher miles any day over one from a dealer with lower miles.

I disagree.How many financing options does a private party offer? Who looked over the car and is providing the warranty? Why is the private party selling it? What is he required by law to disclose?

You can get financing on a private party sale, and you can buy a warranty just like the dealerships do. The warranty will actually be cheaper since the dealer marks it up. As for the reason the private party is selling, the same question applies to the dealer. Why did someone trade the car in? Dealerships know nothing about used cars beyond trying to sell you into them. I find private parties will actually tell you about anything that may need attention.