Used Cars- Prices To Tank

[pj8708]

A prediction just out says the prices for used cars will fall to there lowest point in history. The current sales of new cars over these last few years will be the driver behind this history making event.

After you've read the prediction, post your response to this doom and gloom. Should this happening be good for we buyers, or will it drive the new car prices wild.

What do you think?

Paul

http://autos.aol.com/article/used-car-prices-expected-to-drop-in-next-few-years/?ncid

[LEX-SV]

Not worried about it is my opinion. The cars most impacted by it will be the usual suspects (domestic brands, models with heavy sales into rental car fleets, etc.) where resale value is already below average.

Desirable vehicles will always maintain decent resale value. Resale value is an important consideration when looking at total cost of ownership.

[pj8708]

Not worried about it is my opinion. The cars most impacted by it will be the usual suspects (domestic brands, models with heavy sales into rental car fleets, etc.) where resale value is already below average.

Desirable vehicles will always maintain decent resale value. Resale value is an important consideration when looking at total cost of ownership.

You make some good points St. Besides quality never goes out of style. But within this predicted market change can lye some other important factors. Future interest rates will have a marked influence not just in car sales, but in all sectors as we experienced over the last several years. My guess is when the Fed. makes a move on the prime rate, it would likely be upwards.

Another consideration is what will happen if the economy turns downward as some conservatives are predicting.

When it comes to used car value, that has always been a hot spot for me. I keep my 2013 ES350 in "Like New" condition at all times. I wash it once a week and do all of the interior things at the same time. I have it detailed at least twice a year and I trade every 3 years. What trips my trigger is when you go to the dealer to negotiate your new Lexus, they look mine over and always say, "wow! that is a beautiful car. Everything is like new." But when you start talking price, the dealer comes in at under book for my trade. That's to be expected. However, after you've played "Tag, your it" they bump up the trade in value to book level. My point is that it seems to do little good to keep a car in spotless condition when it won't make a difference at sales time.

Paul

[LEX-SV]

Yes, I tend to sell my best cars and trade my crappier cars because of the exact reason you mentioned including "My point is that it seems to do little good to keep a car in spotless condition when it won't make a difference at sales time".

I have access here to a very good boutique high end used car dealership for selling, they will do it for $2000+ commission (pre-negotiated) and display car indoors (properly insured too). The goal here is to sell for private seller retail price (not bloated dealership retail price) and still clear considerably more than trade-in offered by dealerships even after paying the pre-negotiated commission. This is a great way to sell only cars with moderate mileage in very good to excellent condition, preferably premium cars (other non-premium brands can be sold that way if they are nice). I sold my last Porsche Boxster that way with good results and no hassle.

[lenore]

Hey the lower the better, since that is what I will buy for now on. Too much depreciation for cars, I have learned the hard way. However my present RX was around half price after only 3 years. CarMax gave me a better deal than the Lexus Stealership, ($7k cheaper) for same model, with slightly higher mileage. That was after trying to get a trade in value or my old RX and get their price down to a reasonable price. I ended up selling the RX300 for $2.5 k more than what CarMax offered and $4k more than what Lexus offered. The Car was spotless, but high mileage with no issues. So yea, drop your prices, especially when I am ready again.

[LEX-SV]

Agreed, the lower the better for used cars. I bought my Lexus IS350 as 1.5 year old CPO car, like new. I'm also ready for the opportunities that come with lower used car prices.

[pj8708]

For probably 70% of the past decades I have enjoyed the use of good used cars. However, in these retired years, and when the payout of those past years has allowed it, I really enjoy the opportunity to buy a brand new car, ordered just the way I want it. To me, it's just something I enjoy. Also in those past years I leased off and on because I covered a large area and expense reimbursement was not terribly generous. The write-off opportunities were better than owning.

I mentioned "ordering" a new Lexus earlier. When I bought my 2013 ES350, I discovered that if I insisted on leather inside, the car would have to be ordered from Japan. (I assume this will change when the Kentucky plant goes on line.) A question for you guys and other readers, have all of the interior coverings been switched to Nu-Lux? I don't know if you can still get leather or not.

Paul