Current Events > used cars seem overpriced

(+) Yeah! (+)

vehicles with over 100k miles selling for more than $10,000 seems crazy to me. Anything less than 100k miles shoots up to $15-20,000+

Might as well just buy a new car these days

It makes no sense. Dummmmb.

Obviously this is because of the chip shortage and stimulus checks from years ago.

weird. it's almost like there's a bunch of better options that never got funding due to capitalism.

solosnake posted...

vehicles with over 100k miles selling for more than $10,000 seems crazy to me. Anything less than 100k miles shoots up to $15-20,000+

Might as well just buy a new car these days

That's what I ended up doing a few months ago. With the dealer incentives for financing thru them, it basically comes out the same price.

Happened the last time I went shopping for a car a little over a decade ago, too. Fully intended to buy a (lightly) used car; found the prices fucking absurd and ended up paying around the same for a new car as the used would've cost. Back then, they were claiming some mix of "cash for clunkers" and one of the hurricanes (Irene?) removing tons of cars from inventory as the reason used cars cost so much.

Car shopping isn't something I look into very often, so I wonder, "is there always some excuse, or do all the times I need a car just happen to perfectly line up w/ used car prices spiking?"

High interest rates means people aren't buying new. New car inventory is starting to back up a bit.

They are

Fixing your old car might be a more feasible option than buying a used one these days.

I hate to sound like the old guy but I seriously remember when I started driving when kids in high school legitimately bought some used cars for a few hundred bucks. Sure they were usually flawed and on their last legs but they were still drivable and perfectly acceptable for a high school kid.

Hell there were some pretty nice used cars for a couple thousand. My first vehicle when I got home from the Navy was a used truck. it had 34,000 miles on it and was used by an old farmer. It was in great shape and I bought it for $5,000.

I only bought new vehicles after that but that used truck I bought treated me great for years and when I sold it to a family friend it treated them great for many years too. I sold it for $1,500.

It blows my mind what has happened to vehicle prices. Used and new.

archizzy posted...

It blows my mind what has happened to vehicle prices. Used and new.

Two things happened. First is that auto loans have been heavily relied upon to sell vehicles, a significant number of these are subprime loans with very long terms to get the monthly payment "affordable", and this has been happening since before the pandemic. The second is that the pandemic gave the auto companies record profits since they could sell fewer vehicles for much higher prices because of the "chip shortage" and general "supply issues" giving them an excuse. It was initially legitimate, but they've gotten so used to such high profit margins and are unwilling to drop prices.

There is now over $1.5 trillion in auto loans out there: https://fred.stlouisfed.org/series/MVLOAS
https://gamefaqs.gamespot.com/a/forum/4/497bd26a.png

Just another component of the everything bubble.

May as well buy new

I saw a fucking Jeep Wrangler for $100k lmao

It was brand new and had a winch and shit, but wtf ain't no Jeep worth that

1337toothbrush posted...

Obviously this is because of the chip shortage and stimulus checks from years ago.

No.

There are 1000s upon 1000s of used cars out there as well as new cars. They are all being held back otherwise the car industry (also all the secondhand dealers) would go down the proverbial shitter.

That's all it is.

Ever seen those vehicles sitting at the docks for a couple of years then sold as new? Madness.

Also, the best used cars are saved for franchises by the auto manufacturers. The manufacturers auction/sell to the franchises first.

The whole industry is proper shady. That new car you bought and was so proud of? That's been sitting in a yard for at least two years.

Everything is now. I am going to have to ride my car until the wheels fall of.

KawiKa posted...

No.

I was being sarcastic.