Skip to comments.Used Vehicle Prices Plunge Signaling End Of Auto Party
Posted on 08/08/2012 7:00:38 PM PDT by nascarnation
However, there is one index that tends to see through all the unreality much more clearly than our analysis above, that is the Used Vehicle Price index. Each time this index has dropped and broken below its two-year average, the auto industry has tended to fade rapidly.
(Excerpt) Read more at zerohedge.com ...
Guess we’ll need another “Cash For Clunkers” to bring the prices back up again. /s
Quick! We need another cash for clunkers program to send the prices through the roof again.
Only the wealthiest people I know were able to take advantage and those who couldn’t afford new cars had to pay top dollar for used.
Should be a couple of good games this weekend at the ballpark. Tigers seem to be getting into a good groove finally.
My 2009 Camry is going to be all mine in November. And I intend to ride it until the wheels fall off. There is no f-ing way that I want to buy a new or even slightly used car when I am supporting family members in Obama’s economy.
didn’t know there was a party.
Good. This means the supply has finally caught up with the vast gaping hole left by C4C.
Also, the creeping gas prices and ongoing recession are driving prices for all but the smallest, most fuel efficient cars way, way down.
But hey! It's another sign of a bad economy... Only we've had a bad economy for all of Obama’s term, and it shows little sign of getting any better. QUICK: Let's keep federal spending at 25% of the GROSS NATIONAL PRODUCT!
Some days, I really wish there was an electro-shock on the voting button in Congress... Every time a congressman votes to spend us more in debt, they get a shock - the voltage set by the amount of dollars in debt the bill they are voting on sends us, in milivolts. Figure after the third ten billion dollar budget buster, they might even hesitate a moment or three before pressing the button for a trillion dollar debt package...
Of course there has been, the stock market (especially autos) will rise tomorrow to new heights. Such is the glory of Obamaloney.
I have a 1998 Lexus LS400 with 168,000 miles. 3 months ago I replaced the starter. It was the first repair since I’ve had it. 10 years ago I bought it with 44k. The rest was just maintenance.
” didnt know there was a party. “
Guess your invitation got lost in the mail..
But it is good news or people like me who desperately needs a “new” (to me) car.........
Finally had to get rid of my ‘97 Escort - it was starting to nickel and dime us to death.
And there are still no “clunkers” around for my 19 and 17 year olds to pick up for theiir first car. Used to be an easy find.
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That’s what Escorts do. They weren’t very good to start and they didn’t get better as they aged. :P
Yes there is... There is a 1000 dollar one sitting in my driveway. Runs/Drives hell the a/c blows cold.
15 people have come and looked at it, drove it. Then offered me 3-400 for it.
Good looking truck. Has 1000 bucks worth of new tires on it.
Prices are dropping because people are demanding low prices because they have no more money to pay for them.
I’ll keep it as a spare before I sell it for scrap prices. (or I’ll just scrap it to save the title headache)
Had it not been for the “cash for clunkers” program, this index might mean something this time around, but I believe the prices are dropping below their 2 year avg. because supply and demand in the used car market is starting to recover after the government program wreaked its havoc.
Same thing here...
Got an older car I’ve pretty much restored, but with plunging used car prices, it’s easier to keep it as a spare, than sell it right now.
I spoke with several used car dealers afterwards and they said they almost didn't survive that period.
They all went to Mexico! Steady stream from Houston for the last 30 years!
The Saga of Mexico’s Used Car Dilemma Caused By NAFTA
Murry Page - Mazatlan Messenger
March 16, 2012
Like anything else the government experts touch...
There is more genius in the market than there ever was in government!
Mythbusters tested this with several bulls in a china shop they set up.
Not a single piece of china was broken despite the bulls running in and around the shelving full of breakable china.
10 y/o car here. Will drive it til the wheels fall off.
I’m in the market for a “new” car and used prices are clearly inflated.
Right now, I can buy a new car with a full warranty for a few hundred dollars more than a 2-year-old car.
In 2008, when I bought my last car, I got a 3 year-old SUV for about 40% of new($25k new for $11k), currently the discount is about 25%. I have seen ads for my current SUV with the same mileage (120k+) going for what I paid in 2008 — total insanity.
I’ve been buying used cars for 20+ years and can’t remember when it was a better value to buy new.
That's because bulls aren't stupid enough to run into the shelves. Congress, on the other hand... :)
The illegals keep the used car market thriving in Houston, that’s for sure. Just another reason why both parties tolerate them.
Sounds like you need to upgrade to a 2013 Lexus LFA.
[...cant remember when it was a better value to buy new.”
Never! I have a 2000 BMW, and a 2008 Hummer, both are awesome, too awesome to sell right now anyway! Both were purchased used.
If only gas prices weren’t artificially inflated!
Not only just car dealers, smog shops were hit hard too.
Have a 99 jeep Cherokee with 137,000 mi. Bought it as a dealer used car only 4000 mi for $17,000. Usual maintenance and it runs great. This might be a good time to do some car shopping.
“Every time a congressman votes to spend us more in debt, they get a shock - the voltage set by the amount of dollars in debt the bill they are voting on sends us, in milivolts. Figure after the third ten billion dollar budget buster, they might even hesitate a moment or three before pressing the button for a trillion dollar debt package...”
I have thought a variation of this would be a good way to hold down spending. The people whose senators voted for more spending would pay more in taxes, and those in states whose senators were frugal, would pay less. Put a formula in place to accomplish that, and see how the spendthrifts change their tune.
>> Quick! We need another cash for clunkers program to send the prices through the roof again.
What an outrageous waste that was.
The only other vehicle purchase I plan to make during that time is going to be a pickup...but that won't be until after I buy my farm, so that's still 3-4 years down the road.
I scrapped an 86 chevy 3/4 ton last fall for 600.00. My advice put 1500.00 on the sign.
Used parts for late models are expensive.
Same here. Doing just fine with 109k on it. Very popular model so I can get parts.
I started off at 2200 3 or 4 weeks ago. I got it sold last night though. I added “trade” to the title of my listing. Got 80 yards of carpet installed in my new house for it.
It’s a win/win for both parties. I am sure the 1700 retail the carpet would have cost me is not what he is going to have in it. Keeps him busy, and saves me 1700 on carpet.
I think 15 years and 275,000 miles was an excellent running record!
“didnt know there was a party.”
I didn’t get an invite either.
My 87 Jaguar XJ6, never a paragon of reliability, was able to do that. :P
Same here. We have to Japanese rides and we’re riding them until they crumble 20 years from now. lol