Used cars got expensive!

Gmachine

Well-Known Member
Joined
Apr 26, 2005
Has anyone else noticed the used car market has gone crazy? I know cars are running much longer, but a car that's 8 years old with 140K miles should not be worth $10k. I used to pick these up for $4-5K all the time, but not anymore!
 
Depends on the cars, prices are high even at the dealer auctions these days.
 
Some have said it's due to the cash for clunkers program, but I think it's more of a problem of people borrowing $$ at high interest rates for long periods of time.

My wife needs a new car, but finding something reliable has been tough.
 
ONe of my boss's at work also deal in cars, D hunsucker, quality auto or used cars or something like that. He is right off exit 128 fairgrove in that area, check him out, he drives a different car to work everyday, and from what I have seen seem to be some low mileage nice looking cars
 
What are you in the market for? I search craigslist for a few minutes every morning, tend to find alot of deals. Cash for clunkers had alot to do with it, but the 26% interest rates alot of shithole dealers (Buy Here, Pay here) dealerships are robbing people blind.
 
I agree, most respectable dealers will not selling anything on their lot with more than 75K miles on it, nor would a bank give a loan on a car with more miles. So yes, these small lots are kicking up prices.

I'd like find a 2000 or newer Honda or Toyota.
 
Gmachine said:
I agree, most respectable dealers will not selling anything on their lot with more than 75K miles on it, nor would a bank give a loan on a car with more miles. So yes, these small lots are kicking up prices.
I'd like find a 2000 or newer Honda or Toyota.
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What are you looking for?
Any particular options?
Car or truck? 2wd/4wd
Mileage?
Price range?

Lot of dealers on this site, aswell as alot of folks selling cars.

You've got something in your mind, share it and we can probably help you.
 
XJfreakHO said:
What are you in the market for? I search craigslist for a few minutes every morning, tend to find alot of deals. Cash for clunkers had alot to do with it, but the 26% interest rates alot of shithole dealers (Buy Here, Pay here) dealerships are robbing people blind.
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Pay your shit on time,establish credit and you won't pay 26% interest. Buy here pay here lots take care of people who a bank won't touch. It's not the car dealers fault that a customer has crappy credit. Big risk , big reward.
 
yep.........or save your money for 7 years and pay cash money.
 
Yep. I did a used car search last year and everyone was asking about $1500 over blue book (assuming car was perfect) for a car that had the piss beaten out of it.

Couple years ago, seemed like $500 cars were left and right. Loved em.

I ditched my new car, high insurance and car payment for a $2k car. More than I wanted to pay but its a damn nice car.
 
I blame Barret Jackson...everyone thinks their vehicles are collectibles. But honestly, I think a couple things are happening...due to the economy, I think folks need more money so they're not willing to take less because they'll still be in the hole unless the get what they're asking. So what's the point in selling the car if it doesn't solve your problems? even thought they're not in a position to turn anything down. Or you have the other side of the spectrum where you do see some folks starting to recover, therefore the money isn't needed and they're willing to sit on what they have until it sells or rots away.
 
you also have new car manufacturers, who no longer have to be profitable, they can hold out for a stupid ass price because if they don't get it they will get bailed out.

New car prices on American vehicles increased 19% last year...as new cars become less affordablee demand for quality used cars is increased, supply of quality used cars was drastically cut by the stupid ass C4C program...my 9 year old can takee it from here

More demand plus less supply = higher prices
 
BIGWOODY said:
Pay your shit on time,establish credit and you won't pay 26% interest. Buy here pay here lots take care of people who a bank won't touch. It's not the car dealers fault that a customer has crappy credit. Big risk , big reward.
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I pay all my my bills and have great credit for my age, so that doesn't apply to me, but in my experience a person with shitty credit is less likely to be able to afford it with the massive interest rates, thus the system is inevitable to fail, dealer repos the car, and the cycle continues again.

Just the way it seems to me. I am still young, a bit green behind the ears lol, I have never owned a car worth more than 8k, and I sold it for 6k. I much rather pay cash for a $1500 dollar car that is reliable than 300 a month for 3 years for a piece of shit that probably will break down in that time.
 
SkyHiK5 said:
New car prices on American vehicles increased 19% last year...
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That's an interesting stat right there. Figure in the 4% annual inflation rate, they still increased 15%. Then factor in the fact that average annual pay raises are +/-1% of the inflation rate, somewhere between 3 and 5%. And we wonder why so many car loans are defaulted on.
 
XJfreakHO said:
I pay all my my bills and have great credit for my age, so that doesn't apply to me, but in my experience a person with shitty credit is less likely to be able to afford it with the massive interest rates, thus the system is inevitable to fail, dealer repos the car, and the cycle continues again.
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An interesting side bar, on credit and something that dramatically changed my view point.

people like to brag about credit scores like it is some estimate of wealth, people in the credit business know better. In a previous job we were 100% dependent on credit scores (home alarm business) and I was having a conversation with a senior accounting type who was pretty smart and had my respect. I mentioned a particular decision and why a customer in a 1MM plus home with 300k in cars was turned down foe a 30/month alarm system.
They obviously have the means, I reasoned.
His reply is the lesson here, "A credit score is not a measure of ones ability to re pay a debt it is a better estimator of ones willingness to default on it."
 
I made an offer on pristine 1 owner clean title XJ that had been in NC its whole life. It was supposedly at the Toyota dealership according the autotrader ad so I called to set up an appt. and then was told they let it go to a local used car dealership they work closely with. I say whatever - call the used lot and go see it. Nice guy but this was a buy here pay here place. I drove it, and checked it over good. I knew what common problems to look for and this showed none and had recent maintenance records. Long story short the guy wouldnt sell even though I was willing to pay above KBB retail because I had already wasted hundreds in gas looking at others that were pieces of crap and this was exactly what I wanted. Through conversation I figured out was he didnt want my offer because I didnt need his financing. Why sell to me even at a nice profit when he could sell it to a deadbeat at a ridiculous interest rate - repo it later - and sell it all over again and double his profit. When I called him out on this he somehow blamed it on cash for clunkers. I not a fan of CFC but wasnt really sure how it factored in so I took my money and walked. Found another great one weeks later at a Jeep dealership that gave me better deal and was more than happy to sell to me but DAMN I was in awe how screwed up the used car market is now.
 
Ron, Thats a great way to think about the credit score...

Cars - I said this 2-3 year back when the cash for clunkers thing started... It will completely disrupt the entire used car market and trickle down, that affects used car owners at all levels. Basically the supply chain was disrupted. All these cars that would have been traded in, resold to the next person, who then sold their car, was hugely disrupted.

All the cars that ultimately ended up as $500 cars are still being held on to because that persons $1000 market is disrupted. The same as the $1000 car person can't find a $2k car they would normally by.

Then factor in people being upside down with a 200k car and unable to sell it, and only able to 'ask' for a high price.
 
CJ2YJ2TJ said:
I made an offer on pristine 1 owner clean title XJ that had been in NC its whole life. It was supposedly at the Toyota dealership according the autotrader ad so I called to set up an appt. and then was told they let it go to a local used car dealership they work closely with. I say whatever - call the used lot and go see it. Nice guy but this was a buy here pay here place. I drove it, and checked it over good. I knew what common problems to look for and this showed none and had recent maintenance records. Long story short the guy wouldnt sell even though I was willing to pay above KBB retail because I had already wasted hundreds in gas looking at others that were pieces of crap and this was exactly what I wanted. Through conversation I figured out was he didnt want my offer because I didnt need his financing. Why sell to me even at a nice profit when he could sell it to a deadbeat at a ridiculous interest rate - repo it later - and sell it all over again and double his profit. When I called him out on this he somehow blamed it on cash for clunkers. I not a fan of CFC but wasnt really sure how it factored in so I took my money and walked. Found another great one weeks later at a Jeep dealership that gave me better deal and was more than happy to sell to me but DAMN I was in awe how screwed up the used car market is now.
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Thats exactly what I am talking about, shit pisses me off to no end. I agree though, bad credit score doesn't mean they dont have money, just means they don't like paying the bills, just like having a good credit score doesnt mean you have money, just means you budget well with what you have.
 
I also look at it from the perspective of the previous owner of my Acura. He bought the car new in 2002, paid $38k for it. Drove it for 6 years and the dealership was only going to give him $2500 for it. I offered him a bit more and he was happy. It was his business car, so at least it was a right off, but still a bad investment. I believe we have less people doing this and trying to get more for them.

I just saw an add for a local lot here in Hickory on TV for a 07 4dr wrangler with 110K miles for $17K! Three years ago I would have laughed, now I just shake my head.

I haven't had a car payment for years. It's the best feeling ever. Cash only from here on out. Dealerships will give you a pretty good deal on a new car if you push them to do this too!
 
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