Posted on 11/07/2022 9:29:05 AM PST by ChicagoConservative27
The wholesale price of used cars is falling off a cliff while the prices that car shoppers are paying is way up, suggesting dealers are making a killing while consumers are taking a bath.
Wholesale used car prices declined 2 percent from September in the first half of October and are down 10.3 percent from a year ago, according to The Manheim Used Vehicle Index published on Monday.
Wholesale used luxury car prices are down 13.5 percent while used sport utility vehicles are down 12.3 percent and pickup trucks are down 8.4 percent.
Meanwhile, the retail price that car shoppers are paying for used cars has increased 7.2 percent since last year, according to the Department of Labor’s latest consumer price index.
(Excerpt) Read more at thehill.com ...
Several reasons for these numbers.
Retail price lags wholesale price by at least 3 mo’s. Retail used car pricing was ridiculous for several years with car values actually going up. As was wholesale. The wholesale market is somewhat correcting, but as dealers bought their current inventory at previously inflated wholesale that means to make any kind of profit they have to sell them based on their current cost.
Our best lender went from using NADA values to, well I don’t know what values, but they use “Carbly”. Scan vin and it give value which is thousands less than NADA. Which puts dealers in a bind because it’s less than wholesale paid last month.
I pinged a potential buyer
I bought a 2003 Lexus SC430 convertible, 300+ hp and fully decked out for $10,500, with 113,000 very well maintained miles, local condo car, spent it’s whole life in FL, clean Carfax.
65k when new, lol, I love it
I'm always getting offers to sell my 22-year-old pickup truck. Runs great, not ready to let it go. People leave notes on the windshield, even the garbage-man keeps asking.
Thanks. I haven’t officially listed it yet, but wanted any interested freepers to get first crack at it.
I did buy two brand new motorcycles twice. A 250 Yamaha Enduro...and late a KZ 650 Kawaski. Wish I never sold them...
I think it may happen by next summer.
Out of necessity I managed to replace my worn out car with a nice certified 2 year old one last year at blue book and 1.9%
Taking extra care of wife’s car now so it will last until prices drop and we replace
Um...did you catch the name?
=o)
Yeah, very clever.
Thanks for the post.
We are going to wait a couple of years to replace my wife’s car—hopefully the prices will calm down by then.
Yes my pick up I bought two years ago is worth more now than what I paid for then.
took a chance on the fr name and SURE ENOUGH someone created the account, but never posted to it.
...thank you for your sense of humor =o)
A former co-worker sold his Toyota with nearly 200k miles, no blemishes, instead of trading it in because they wouldn’t give him squat for it at the dealer.
He sold it to a ‘auto broker’ that takes the cars and exports them to Latin American countries and sells them there at a premium.
My friend got a whole lot more, like 5x what the dealer was offering................
Good for him he’s a thinker
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