Complete collapse of the used car market?

chassis · 06-27-2020, 04:08 PM

No used cars on the local BMW dealer lot, where there are usually 5-10 parked. I’m not seeing a collapse of prices. With the temporary auto plant shutdowns, there are arguably not enough vehicles to satisfy demand. I am seeing new temporary license tags around my area on a regular basis. Transactions are happening hence demand is far above zero.

Dealers will be making hay as usual.

RobC2 · 06-27-2020, 09:19 PM

If anything, the lack of new inventory helps at least the desirable used cars. I got a great price on my Hellcat I recently sold to the dealer. No, that does not mean that the average Dodge Neon or whatever people are trying to trade in is going to be worth anything. There are just too many of them and too many owners of them that are going to want to sell.

chassis · 06-27-2020, 10:10 PM

RobC2 makes sense. Lack of supply for vehicles like a Hellcat means sellers, whether private or a dealer, are seeing a favorable market.

Some of us are hoping for prices to sink, for quality pre-owned performance vehicles. I am not seeing this yet, so far, online or in my local area.

davidr3 · 06-27-2020, 10:22 PM

Quote:

Originally Posted by chassis

RobC2 makes sense. Lack of supply for vehicles like a Hellcat means sellers, whether private or a dealer, are seeing a favorable market.

Some of us are hoping for prices to sink, for quality pre-owned performance vehicles. I am not seeing this yet, so far, online or in my local area.

If it hasn't happened yet I really don't think it'll happen. Sounds like things are steadying out again.

dmk08 · 06-30-2020, 08:47 AM

Quote:

Originally Posted by chassis

Good news for sellers, not so much for bargain hunters such as myself.

Wholesale Prices Continue Strong Performance First Half of June
https://publish.manheim.com/en/servi...lue-index.html

The market sucks for buyers right now as Im finding out.

I sold my 08 4runner last month as it was time for a new car with more space. I was able to sell it for a ridiculously high price IMO in 6 hours on the market. Guess I could have gotten more.

Since that time I have been trying to negotiate a deal on a replacement vehicle and the dealers just are not budging much on used luxury SUV prices. Seems like they would rather just sit on the inventory.

The banks are part of the problem as they are essentially blocking any rational person from financing a used car from a private party by inflating interest rates. I can go to BMW and secure .9 on a used car but the lowest private party purchase rates out there are around 5% (lightstream min rate).

Alfisti · 06-30-2020, 10:59 AM

It astonishes me how hard ball dealers are here especially. They prefer to sit on a car for months. I offered a dealer an admittedly low ball price about a year ago, he sold the car for about 6K more than i offered but it was 3 months later, was it worth it??

dmk08 · 06-30-2020, 11:52 AM

Quote:

Originally Posted by Alfisti

It astonishes me how hard ball dealers are here especially. They prefer to sit on a car for months. I offered a dealer an admittedly low ball price about a year ago, he sold the car for about 6K more than i offered but it was 3 months later, was it worth it??

I made an offer on an X5 35d about 3 weeks ago. They turned down my offer in a pretty rude manor. Wasn't even extreme about 10% off.

They have now lowered the same car naturally more than 10% off and it's still sitting on their lot.

Not sure the strategy....

chassis · 06-30-2020, 12:08 PM

Home prices in the US remain strong (data released today) so in my view this continues to point to strong vehicle pricing.

c0bra · 06-30-2020, 04:33 PM

Quote:

Originally Posted by dmk08

I made an offer on an X5 35d about 3 weeks ago. They turned down my offer in a pretty rude manor. Wasn't even extreme about 10% off.

They have now lowered the same car naturally more than 10% off and it's still sitting on their lot.

Not sure the strategy....

Now you can offer them 10% off the new lower price!!

JasonCSU · 06-30-2020, 04:59 PM

Quote:

Originally Posted by dmk08

I made an offer on an X5 35d about 3 weeks ago. They turned down my offer in a pretty rude manor. Wasn't even extreme about 10% off.

They have now lowered the same car naturally more than 10% off and it's still sitting on their lot.

Not sure the strategy....

Dealer behavior examples like this crack me up. Are you planning on making another offer? If it were me, I'd have a hard time not pointing out their ill fated strategy.

c0bra · 06-30-2020, 05:02 PM

^^^ This!

Just be sure to point it out AFTER the ink has dried!

9M71 · 06-30-2020, 09:28 PM

Quote:

Originally Posted by player1986

A lot of people lose the job,and sell their cars,so it is a good time to buy cheaper cars

I guess you havent read this thread at all, have you?

LOW4LYF · 07-01-2020, 03:23 AM

Quote:

Originally Posted by player1986

A lot of people lose the job,and sell their cars,so it is a good time to buy cheaper cars

With unemployment plus Corona money some people have more money than before. The crisis didn't happen yet.

As mentioned before, dealerships running out of cars.

dmk08 · 07-01-2020, 10:14 AM

Quote:

Originally Posted by JasonCSU

Dealer behavior examples like this crack me up. Are you planning on making another offer? If it were me, I'd have a hard time not pointing out their ill fated strategy.

I'm not. I have moved on from buying an X5 to a different vehicle type. Maybe they did me a favor so I could come to that conclusion before buying it...

TXSTYLE · 07-01-2020, 06:13 PM

To OP:

Where there's a will.
There's a way.

Jbrown7403 · 07-01-2020, 09:06 PM

Pretty interesting site to follow:

https://www.cargurus.com/Cars/price-trends/BMW-M4-d2258

Prices are definitely going up for used M4s (all years) over the past 30 days

chassis · 07-01-2020, 09:30 PM

Quote:

Originally Posted by Jbrown7403

Pretty interesting site to follow:

https://www.cargurus.com/Cars/price-trends/BMW-M4-d2258

Prices are definitely going up for used M4s (all years) over the past 30 days

Good stuff, thanks for posting. I use CarGurus to track prices but haven't used the trend data.

Jbrown7403 · 07-01-2020, 11:09 PM

Quote:

Originally Posted by chassis

Good stuff, thanks for posting. I use CarGurus to track prices but haven't used the trend data.

Really flexible site and worth bookmarking

Hegge · 07-02-2020, 12:05 PM

Quote:

Originally Posted by Jbrown7403

Pretty interesting site to follow:

https://www.cargurus.com/Cars/price-trends/BMW-M4-d2258

Prices are definitely going up for used M4s (all years) over the past 30 days

Maybe they saw what the G82 M4 looks like so they are anticipating an increase in value for the F82 M4.

Jbrown7403 · 07-02-2020, 04:16 PM

Quote:

Originally Posted by Hegge

Maybe they saw what the G82 M4 looks like so they are anticipating an increase in value for the F82 M4.

Good point!

chassis · 07-04-2020, 04:52 PM

Today I spoke with a marina/boat dealer when ordering a repair part for an outboard engine. The guy on the phone said they have never sold so many personal watercraft (waverunners/jetskis) as this year. Generally consistent with what I saw on waterways this weekend - loaded with people and boats, enjoying the great outdoors (and spending money).

This supports the notion that a collapse in prices is unlikely for discretionary vehicles, for example high horsepower German four door models.

NickyC · 07-04-2020, 06:20 PM

Quote:

Originally Posted by Jbrown7403

Pretty interesting site to follow:

https://www.cargurus.com/Cars/price-trends/BMW-M4-d2258

Prices are definitely going up for used M4s (all years) over the past 30 days

Yeah I noticed that just last night. Private party and trade in for my M4 went up around $3k since last time I checked (early last month or so).

Bizarro world. I'm out of the future guessing game.

06-27-2020, 04:08 PM	#111
chassis Colonel 8459 Rep 2,509 Posts Drives: 9Y0 Cayenne S Join Date: Mar 2019 Location: Einbahnstraße iTrader: (0) Garage List 2020 Porsche Cayenne S [7.69]	No used cars on the local BMW dealer lot, where there are usually 5-10 parked. I’m not seeing a collapse of prices. With the temporary auto plant shutdowns, there are arguably not enough vehicles to satisfy demand. I am seeing new temporary license tags around my area on a regular basis. Transactions are happening hence demand is far above zero. Dealers will be making hay as usual.
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06-27-2020, 09:19 PM	#112
RobC2 Lieutenant 316 Rep 520 Posts Drives: different makes and models. Join Date: Aug 2013 Location: NC iTrader: (0)	If anything, the lack of new inventory helps at least the desirable used cars. I got a great price on my Hellcat I recently sold to the dealer. No, that does not mean that the average Dodge Neon or whatever people are trying to trade in is going to be worth anything. There are just too many of them and too many owners of them that are going to want to sell.
	Appreciate 2 chassis8459.00 BigHunk274.50 Quote

06-27-2020, 10:10 PM	#113
chassis Colonel 8459 Rep 2,509 Posts Drives: 9Y0 Cayenne S Join Date: Mar 2019 Location: Einbahnstraße iTrader: (0) Garage List 2020 Porsche Cayenne S [7.69]	RobC2 makes sense. Lack of supply for vehicles like a Hellcat means sellers, whether private or a dealer, are seeing a favorable market. Some of us are hoping for prices to sink, for quality pre-owned performance vehicles. I am not seeing this yet, so far, online or in my local area.
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06-30-2020, 10:59 AM	#116
Alfisti Brigadier General 6986 Rep 3,283 Posts Drives: 2008 Saab 9-3 Combi Join Date: Nov 2014 Location: Toronto, Canada iTrader: (0)	It astonishes me how hard ball dealers are here especially. They prefer to sit on a car for months. I offered a dealer an admittedly low ball price about a year ago, he sold the car for about 6K more than i offered but it was 3 months later, was it worth it??
	Appreciate 0 Quote

06-30-2020, 12:08 PM	#118
chassis Colonel 8459 Rep 2,509 Posts Drives: 9Y0 Cayenne S Join Date: Mar 2019 Location: Einbahnstraße iTrader: (0) Garage List 2020 Porsche Cayenne S [7.69]	Home prices in the US remain strong (data released today) so in my view this continues to point to strong vehicle pricing.
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06-30-2020, 05:02 PM	#121
c0bra Commander ;) 188 Rep 115 Posts Drives: E88 N54 Join Date: Aug 2018 Location: Westchester, NY iTrader: (0)	^^^ This! Just be sure to point it out AFTER the ink has dried!
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07-01-2020, 06:13 PM	#125
TXSTYLE "Salud" 15557 Rep 5,074 Posts Drives: M8 Gran Coupe Comp & X5M Comp Join Date: May 2013 Location: The Burbs - N TX iTrader: (0)	To OP: Where there's a will. There's a way.
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07-01-2020, 09:06 PM	#126
Jbrown7403 Captain 2917 Rep 698 Posts Drives: 2016 BMW M4 Join Date: Aug 2019 Location: Austin Texas iTrader: (0)	Pretty interesting site to follow: https://www.cargurus.com/Cars/price-trends/BMW-M4-d2258 Prices are definitely going up for used M4s (all years) over the past 30 days
	Appreciate 3 chassis8459.00 Dog Face Pony Soldier9664.00 NickyC19595.50 Quote

07-04-2020, 04:52 PM	#131
chassis Colonel 8459 Rep 2,509 Posts Drives: 9Y0 Cayenne S Join Date: Mar 2019 Location: Einbahnstraße iTrader: (0) Garage List 2020 Porsche Cayenne S [7.69]	Today I spoke with a marina/boat dealer when ordering a repair part for an outboard engine. The guy on the phone said they have never sold so many personal watercraft (waverunners/jetskis) as this year. Generally consistent with what I saw on waterways this weekend - loaded with people and boats, enjoying the great outdoors (and spending money). This supports the notion that a collapse in prices is unlikely for discretionary vehicles, for example high horsepower German four door models.
	Appreciate 0 Quote