Used vehicle prices

Discussion in 'Sound Off' started by NbyNW, Aug 7, 2020.

  1. NbyNW

    NbyNW

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    Purchased my last truck in 2010. A 2006 Ford F-150 XLT with topper at 55k miles for 18.5k.
    Currently looking at used trucks and prices are significantly higher. I understand inflation, supply and demand, etc. I hear that there is strong demand for used vehicles currently and prices are up.
    If I kbb a similar 2016 truck it comes in at 27k. That’s a 45% increase in 10 years, does this sound about right?
    Anyone here sell used cars or have insight if we are in a small bubble or have prices been around this level for a period of time?
     
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  2. ESOX

    ESOX Staff Member Super Mod Mods

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    The guys I know in the car businesses say that the prices of new vehicles have driven many to the used market the past 5-10 yrs, inflating the price of good used vehicles, probably permanently.

    But right now we are in a bubble, due to the lack of supply of new vehicles due to lost production, which has squeezed the used market. Leases are getting extended because the companies have no new vehicles to lease out, so there are fewer lease turn ins. Fewer trade ins for the same reason, nothing to trade in for. It should be back to the new "normal" mid summer next year.

    They offered my wife and my sister in law a lease extension. My wife is picking up a 2020 demo as a new lease in Sept. Dirt cheap lease, 200 bucks a month 0 down 12K mi per anum 2 yr lease on a very well equipped Equinox.
     
    Last edited: Aug 7, 2020
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  3. Lumberman

    Lumberman

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    The rental car industry is dumping 500,000 1-2 year old cars into the market right now. They are purposely trying not to flood the market and destroy the values so they selling slow. Every auction lot is packed to the gills.

    If you could hold out a little longer when new car production starts back up the used car market will tank.

    That all being said trucks can sometimes be the outlier. Trucks in the Midwest seem to stay flat no matter what the used car market is doing.

    Your smaller SUVs that the rental companies prefer will be for sale dirt cheap in the next 6 months.
     
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  4. brushbuster

    brushbuster Premium Member

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    It's crazy what they want for late model trucks.
     
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  5. brushbuster

    brushbuster Premium Member

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    The more time I save for a newer truck the more them bastards go up.
     
  6. Woodstock

    Woodstock

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    There is virtually no stock at this time. We drove by dealers and there is less than half of what they usually have.
     
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  7. WALLEYE MIKE

    WALLEYE MIKE Staff Member Mods

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    Supposedly my dealer wants my truck. Recently said I could get $33,750 on a trade in. 2017 Ram 2500 with diesel. Problem is they don't have the same truck in a 2020 to purchase.
     
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  8. jatc

    jatc

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    Even pre-pandemic the prices on newer used trucks and four wheel drive SUV’s were high.

    I’d been looking for a low mileage crew cab for about a year and I didn’t see much for under $26,000.

    In early June I ended up buying a fully loaded out Ford Flex with 50,000 miles for $15,000 out the door instead. Amazing what I can fit in that thing and I can still pull a utility trailer if I need plywood (or put it on the roof rack). It’ll tow 4500 lbs.

    A really nice vehicle for half the cost of an equivalent shape truck and I saved about $15,000. I’ll find an older truck eventually (which I might put 5,000 miles a year on as the Flex is my daily driver now) and be money ahead.
     
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  9. Nostromo

    Nostromo Premium Member

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    It sounds about right. I bought a 2016 GMC last July. It was $28,000 out the door. 4x4, 39,000 miles. The last piece of literature I got from carfax said it was worth 20,000 trade in.
     
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  10. jatc

    jatc

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    The only value calculator that matters is NADA. That’s what the banks use. Problem is for those financing is that NADA is always about six months behind the curve of actual selling prices, and the dealers do their best to work together to drive up the actual selling prices of used vehicles.
     
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  11. Luv2hunteup

    Luv2hunteup

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    Our little town of 5,000 has a full compliment of dealers but not many new trucks or even used ones on the lot for that matter. I was looking to buy a new truck early in the year but there is nothing to be had. Chevy, GMC, Ford, Ram and Toyota just don’t have inventory so I’ll wait until the supply chain fills back up with 2021s.
     
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  12. brushbuster

    brushbuster Premium Member

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    Hell, Id be happy for a 2 yr old truck at 26,000. I haven't had a car payment in a few years and I want to keep it that way, but damn 30k for a used truck makes it rough.
     
  13. tincanary

    tincanary

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    This is exactly what we use. Furthermore, we just use it to get an idea and don't to go by the retail price to determine valuation, we use an average of the trade-in value and retail price which can come in as much as 20% lower than retail in some instances, but typically goes about 5% to 10% below retail. If the vehicle valuation comes out less than the selling price, we ask for money down to meet the deficiency.
     
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  14. Ranger Ray

    Ranger Ray Smells like, Victory! Premium Member

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    I bought new a couple years ago. I have a friend that buys and sells cars. He looked for a used truck for me. After 6 months, we came to the conclusion the used were so jacked up, and the new were discounted enough in pricing, the loss in buying new, was almost negated. So I bought new.
     
  15. Shoeman

    Shoeman Mods

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    And at 0% a no-brainer
     
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