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Used Vehicle Prices Plunge Signaling End Of Auto Party
Zero Hedge ^ | 8/8/12 | Tyler Durden

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 ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: automakers; bhoeconomy; clunkers; economy; sales; used; vehicle
Predicting more economic trouble ahead.
1 posted on 08/08/2012 7:00:55 PM PDT by nascarnation
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To: nascarnation

Guess we’ll need another “Cash For Clunkers” to bring the prices back up again. /s


2 posted on 08/08/2012 7:01:52 PM PDT by dfwgator (FUJR (not you, Jim))
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To: nascarnation

Quick! We need another cash for clunkers program to send the prices through the roof again.


3 posted on 08/08/2012 7:02:12 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: dfwgator

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.


4 posted on 08/08/2012 7:03:51 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: cripplecreek

GMTA!

Should be a couple of good games this weekend at the ballpark. Tigers seem to be getting into a good groove finally.


5 posted on 08/08/2012 7:07:58 PM PDT by dfwgator (FUJR (not you, Jim))
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To: nascarnation

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.


6 posted on 08/08/2012 7:08:21 PM PDT by Lysandru
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To: nascarnation

didn’t know there was a party.


7 posted on 08/08/2012 7:09:21 PM PDT by the invisib1e hand (At what point does an escalated effort to remove this traitor commence, and what form does it take?)
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To: nascarnation

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.


8 posted on 08/08/2012 7:13:42 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: nascarnation
Used car prices are still inflated, and will continue to be inflated for a couple more years to come. That some index is finally dropping is just it measuring the increase in availability of used cars, now that the market is finally stabilizing after Obama’s Cash for Destroying Perfectly Good Cars program.

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...

9 posted on 08/08/2012 7:13:48 PM PDT by kingu (Everything starts with slashing the size and scope of the federal government.)
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To: the invisib1e hand
didn’t know there was a party.

Of course there has been, the stock market (especially autos) will rise tomorrow to new heights. Such is the glory of Obamaloney.

10 posted on 08/08/2012 7:14:07 PM PDT by ProudFossil (" I never did give anyone hell. I just told the truth and they thought it was hell." Harry Truman)
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To: Lysandru

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.


11 posted on 08/08/2012 7:15:16 PM PDT by BreezyDog (PLAN A: A Peaceful Restoration of the Republic.....PLAN B: A Restoration of the Republic)
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To: the invisib1e hand

” didn’t know there was a party. “

Guess your invitation got lost in the mail..

Or something...


12 posted on 08/08/2012 7:17:00 PM PDT by Uncle Ike (Rope is cheap, and there are lots of trees...)
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To: nascarnation

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.


13 posted on 08/08/2012 7:18:10 PM PDT by Gabz (Democrats for Voldemort.)
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To: ProudFossil

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.


14 posted on 08/08/2012 7:18:22 PM PDT by cumbo78
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To: All


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15 posted on 08/08/2012 7:19:06 PM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: Gabz

That’s what Escorts do. They weren’t very good to start and they didn’t get better as they aged. :P


16 posted on 08/08/2012 7:23:02 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: cumbo78

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)


17 posted on 08/08/2012 7:26:59 PM PDT by cableguymn (For the first time in my life. I fear my country's government.)
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To: nascarnation

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.


18 posted on 08/08/2012 7:45:33 PM PDT by spodefly (This is my tag line. There are many like it, but this one is mine.)
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To: cableguymn

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.


19 posted on 08/08/2012 7:48:38 PM PDT by tcrlaf (Election 2012: THE RAPTURE OF THE DEMOCRATS)
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To: nascarnation
The Federal Government is like a bull in a china shop. While the "cash for clunkers" program may have helped new car dealers it almost killed used car dealerships.

I spoke with several used car dealers afterwards and they said they almost didn't survive that period.

20 posted on 08/08/2012 7:57:39 PM PDT by FReepaholic (Stupidity is not a crime, so you're free to go.)
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To: cumbo78

They all went to Mexico! Steady stream from Houston for the last 30 years!

see:
The Saga of Mexico’s Used Car Dilemma Caused By NAFTA
Murry Page - Mazatlan Messenger
March 16, 2012

http://www.banderasnews.com/1203/nb-sagaofusedcarsinmexico.htm


21 posted on 08/08/2012 8:15:25 PM PDT by foldspace (Barak Obama is still not a >convicted< criminal...)
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To: FReepaholic

Like anything else the government experts touch...

There is more genius in the market than there ever was in government!


22 posted on 08/08/2012 8:19:15 PM PDT by himno hero (hadnuff)
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To: FReepaholic
The Federal Government is like a bull in a china shop.

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.

Mythbusters - Bull in a China Shop

23 posted on 08/08/2012 8:28:47 PM PDT by Ol' Dan Tucker (People should not be afraid of the government. Government should be afraid of the people)
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To: himno hero

10 y/o car here. Will drive it til the wheels fall off.


24 posted on 08/08/2012 8:31:27 PM PDT by bicyclerepair ( REPLACE D-W-S ! http://www.karenforcongress.com)
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To: kingu

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.


25 posted on 08/08/2012 8:43:21 PM PDT by MediaMole
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To: Ol' Dan Tucker
Not a single piece of china was broken despite the bulls running in and around the shelving full of breakable china.

That's because bulls aren't stupid enough to run into the shelves. Congress, on the other hand... :)

26 posted on 08/08/2012 8:49:21 PM PDT by Mr. Jeeves (CTRL-GALT-DELETE)
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To: foldspace

The illegals keep the used car market thriving in Houston, that’s for sure. Just another reason why both parties tolerate them.


27 posted on 08/08/2012 8:50:29 PM PDT by 38special (Vote for Mitt Romney, he sucks less!)
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To: BreezyDog
I have a 1998 Lexus LS400 with 168,000 miles.

Sounds like you need to upgrade to a 2013 Lexus LFA.

28 posted on 08/08/2012 8:50:36 PM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: MediaMole

[...can’t 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!


29 posted on 08/08/2012 9:10:19 PM PDT by Bshaw (A nefarious deceit is upon us all!)
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To: FReepaholic

Not only just car dealers, smog shops were hit hard too.


30 posted on 08/08/2012 9:32:08 PM PDT by Conservative4Ever (The Obamas = rude, crude and socially unacceptable)
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To: BreezyDog

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.


31 posted on 08/08/2012 9:36:50 PM PDT by Conservative4Ever (The Obamas = rude, crude and socially unacceptable)
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To: kingu

“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.


32 posted on 08/08/2012 9:41:04 PM PDT by Pining_4_TX ( The state is the great fiction by which everybody seeks to live at the expense of everybody else. ~)
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To: cripplecreek

>> Quick! We need another cash for clunkers program to send the prices through the roof again.

What an outrageous waste that was.


33 posted on 08/08/2012 9:44:19 PM PDT by Gene Eric (Demoralization is a weapon of the enemy. Don't get it, don't spread it!)
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To: Lysandru
I make my last payment on my 2003 Highlander in October. At the rate I'm putting miles on it, I figure she'll last me for another 12-15 years.

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.

34 posted on 08/08/2012 9:48:19 PM PDT by Stonewall Jackson ("I must study politics and war that my sons may have liberty to study mathematics and philosophy.")
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To: cableguymn

I scrapped an 86 chevy 3/4 ton last fall for 600.00. My advice put 1500.00 on the sign.


35 posted on 08/08/2012 10:15:29 PM PDT by enduserindy (Conservative Dead Head)
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To: Gabz

Used parts for late models are expensive.


36 posted on 08/08/2012 10:42:15 PM PDT by Secret Agent Man (I can neither confirm or deny that; even if I could, I couldn't - it's classified.)
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To: bicyclerepair

Same here. Doing just fine with 109k on it. Very popular model so I can get parts.


37 posted on 08/08/2012 10:43:45 PM PDT by Secret Agent Man (I can neither confirm or deny that; even if I could, I couldn't - it's classified.)
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To: cumbo78
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.

I was looking to buy one, but the car I gave to my second daughter was being stored at my house since she had blown the engine a SECOND time - she didn't want it anymore. It is a 1996 Pontiac Sunfire. I just rebuilt it (a SECOND time) and I am about to give it to my third daughter for her 19th birthday! It ain't pretty, but it runs, it is GREAT on gas and the A/C works! What else do you really need at 19?

As far as my family's primary vehicle: 2001 Ford Excursion with the 7.3L PowerStroke Diesel engine. It has 252K miles (it is a baby), I have only had to replace the starter and the water pump, we get about 20MPG in that big boy. It takes about $150.00 to fill it up (from empty), but we will go also 900 miles on that tank!
38 posted on 08/08/2012 11:42:49 PM PDT by ExTxMarine (PRAYER: It's the only HOPE for real CHANGE in America!)
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To: enduserindy

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.


39 posted on 08/09/2012 3:40:46 AM PDT by cableguymn (For the first time in my life. I fear my country's government.)
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To: Spktyr

I think 15 years and 275,000 miles was an excellent running record!


40 posted on 08/09/2012 5:34:31 AM PDT by Gabz (Democrats for Voldemort.)
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To: the invisib1e hand

“didn’t know there was a party.”

I didn’t get an invite either.


41 posted on 08/09/2012 5:37:43 AM PDT by listenhillary (Courts, law enforcement, roads and national defense should be the extent of government)
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To: Gabz

My 87 Jaguar XJ6, never a paragon of reliability, was able to do that. :P


42 posted on 08/09/2012 9:15:47 AM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Lysandru

Same here. We have to Japanese rides and we’re riding them until they crumble 20 years from now. lol


43 posted on 08/09/2012 6:35:52 PM PDT by CommieCutter
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To: CommieCutter

*two


44 posted on 08/09/2012 6:38:48 PM PDT by CommieCutter
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