TheSamba.com :: View topic - Used car market still strong...I am surprised.

Mon May 11, 2020 6:02 am

So my sister-in-law moved from Mass to Florida and asked me if I could sell her WELL used Hyundai Santa Fe for her.

176k miles, bald tires, dirty as can be, but it ran well. In addition to the tires it needed a few things to pass Mass inspection and a few things corrected for overall drivability.

Posted it on Craigslist for basically KBB fair condition (it was really filthy and I wasn't gonna clean it) and got a kinda lowball offer in about 2 hours, then two people stopped by the next morning and 4 emails the day after I listed it. Ended up selling it in 1 day to a guy who said he would take it "as is" and I would "never see him again".

I was kinda surprised that given the current situation in the country there would be that much interest. It was priced well but I was still surprised.

Now I just need to move my sister's Harley..... that will be a challenge because she has it WAY overpriced and the weather sucks

Mon May 11, 2020 9:02 am

after tax season cheap cars are pretty hot here. I imagine it's the same with the stimulus checks. I see a shit ton of crappy cars with paper plates right now, so I'm guessing thats what it is. Lots of places doing service with a car and not taking walk ups...

Mon May 11, 2020 4:35 pm

I fix up old Volvo’s and give them away to charity cases. I usually end up with less than $2000 in them including acquisition price. It’s amazing the junk and the price of stuff they replace. The scum who prey on the people who can’t get loans should be thrown into,lakes attached to the crap they sell.

Tue May 12, 2020 2:40 am

I think it will continue as many can't afford to keep their new or leased cars now. As for the Harley I'm not surprised as they have a horrible resale value high or low mileage, just look at how many are on ebay and how much the dealer will give you for a trade in on a new one. I always though at least a low mileage Harley would be an easy sell/trade-in with some kind of value but oddly I'm mistaken.

jspbtown wrote: So my sister-in-law moved from Mass to Florida and asked me if I could sell her WELL used Hyundai Santa Fe for her.

176k miles, bald tires, dirty as can be, but it ran well. In addition to the tires it needed a few things to pass Mass inspection and a few things corrected for overall drivability.

Posted it on Craigslist for basically KBB fair condition (it was really filthy and I wasn't gonna clean it) and got a kinda lowball offer in about 2 hours, then two people stopped by the next morning and 4 emails the day after I listed it. Ended up selling it in 1 day to a guy who said he would take it "as is" and I would "never see him again".

I was kinda surprised that given the current situation in the country there would be that much interest. It was priced well but I was still surprised.

Now I just need to move my sister's Harley..... that will be a challenge because she has it WAY overpriced and the weather sucks

Tue May 12, 2020 6:27 pm

not sure about used cars but if things stay the way they are currently, here in NJ it will be a good time to buy a 2020 new car(maybe even a 2019)come Sept. Car dealers here are only open for service or for online sales only.

and to stay on topic i sold my 2014 Honda CRV with some dents and dings and scrapes and 180k plus miles for over 7k to a used car dealer in northern NJ. I was happy to get rid of it at that price. CRV have held there value. traded in my 2008 CRV with 259k for the 2014 for 5k and i was thrilled with that!

Tue May 12, 2020 9:55 pm

obus wrote: not sure about used cars but if things stay the way they are currently, here in NJ it will be a good time to buy a 2020 new car(maybe even a 2019)come Sept. Car dealers here are only open for service or for online sales only.

Absolutely. If you are in the market, and your job is not at risk, I think right now is a great time to buy a new car. We bought a new GTi a couple of weeks ago as we were kind of in the market recently anyway. 6 months no payments, 0% APR for the duration. No brainer if a new car is what you’re after. The dealer dropped the car off at the house on a Wednesday for the test drive. We negotiated on Thursday (about 8% off MSRP), and by Friday the car was paid for and dropped back off at the house.

Hopefully the car that got replaced will move that quickly in the used car market to support the OP’s theory!

Wed May 13, 2020 3:04 am

The way I see it the tougher times get the better the used car market will be. I have been just an average wage earner all my life and only bought one new car ever. The initial depreciation hit of a new one just does not pencil out in my view no matter how good the financing offers are. Let someone else take that big hit and then I am interested in it!

Wed May 13, 2020 5:04 am

VWsArent4Hippies wrote: obus wrote: not sure about used cars but if things stay the way they are currently, here in NJ it will be a good time to buy a 2020 new car(maybe even a 2019)come Sept. Car dealers here are only open for service or for online sales only.

Absolutely. If you are in the market, and your job is not at risk, I think right now is a great time to buy a new car. We bought a new GTi a couple of weeks ago as we were kind of in the market recently anyway. 6 months no payments, 0% APR for the duration. No brainer if a new car is what you’re after. The dealer dropped the car off at the house on a Wednesday for the test drive. We negotiated on Thursday (about 8% off MSRP), and by Friday the car was paid for and dropped back off at the house.

Hopefully the car that got replaced will move that quickly in the used car market to support the OP’s theory!

0% APR over a 60 month term is like buying the car at half price, great deal.

Wed May 13, 2020 5:51 am

Quote: 6 months no payments,

Never really understood the appeal of this. If I understand it correctly you are just pushing the payments to the end of the term. So essentially you will still owe money on a car that's worth less :?

Wed May 13, 2020 5:57 am

Quote: 0% APR over a 60 month term is like buying the car at half price,

Huh?

$25k loan for 60 months at 0% is $416.66 per month x 60m = $25,000

$25k loan for 60 months at 3.25% is $452.00 x 60m = $27,120

Interest cost...…$2,120 over the term (or $35 per month)

Wed May 13, 2020 8:14 am

I see classic projects getting dumped like moldy leftovers in the fridge. There is a strong market for beaters with heaters less than $2K ( or oddly I've seen plenty of cars for $1200). The new car market will promise everything plus a hand job very soon as %20 unemployment takes hold.

Wed May 13, 2020 9:59 am

jspbtown wrote: Quote: 6 months no payments,

Never really understood the appeal of this. If I understand it correctly you are just pushing the payments to the end of the term. So essentially you will still owe money on a car that's worth less :?

I don't know about cars but for other stuff:
You are supposed to pay it off in those 6 months so it's done.

The very first couch I bought new was a year "no interest, no payments"
We split the payments in 12 and paid it off so they basically gave us a free loan for 12 months.

Wed May 13, 2020 10:28 am

EverettB wrote: jspbtown wrote: Quote: 6 months no payments,

Never really understood the appeal of this. If I understand it correctly you are just pushing the payments to the end of the term. So essentially you will still owe money on a car that's worth less :?

I don't know about cars but for other stuff:
You are supposed to pay it off in those 6 months so it's done.

The very first couch I bought new was a year "no interest, no payments"
We split the payments in 12 and paid it off so they basically gave us a free loan for 12 months.

Yea, not necessarily a selling point for me, just mentioning it. I was more in for the 0% interest

Wed May 13, 2020 12:02 pm

Quote: I don't know about cars but for other stuff:
You are supposed to pay it off in those 6 months so it's done.

The very first couch I bought new was a year "no interest, no payments"
We split the payments in 12 and paid it off so they basically gave us a free loan for 12 months.

Yeah...those make sense but the car loans are different.

Lets say its a 60 month term and 0% on a $20k car and you buy it in Jan 2020. First 6 months you have "no payments". So in Jan 2025 (60 months) instead of owning the car you still have 6 months left to pay so you still owe money on a car that's even older.

And if you decide to trade it or sell it say 3 years into the term then you owe more on it because you deferred the payments.

I guess if your job is uncertain than its nice to not have to pay for a while....but if your job is that uncertain should you be buying a new car?

Wed May 13, 2020 1:19 pm

I'm tempted to buy a new car (not really) under these circumstances. I own 4 cars. The newest is 20 years old (wife's Toyota Avalon). Then there is my 1996 Toyota T100 4X4. Finally, my Porsche 356's (both well north of 50 YO). And they all run fine. So for those of you buying a car and worrying about its worth 5 years from now, unless it's a total POS, hang onto it. Eff the depreciation--that only kills you if you want to dump it in a few years. And, unless your company is paying for it, NEVER lease.

Wed May 13, 2020 4:18 pm

jspbtown wrote: Quote: I don't know about cars but for other stuff:
You are supposed to pay it off in those 6 months so it's done.

The very first couch I bought new was a year "no interest, no payments"
We split the payments in 12 and paid it off so they basically gave us a free loan for 12 months.

Yeah...those make sense but the car loans are different.

Lets say its a 60 month term and 0% on a $20k car and you buy it in Jan 2020. First 6 months you have "no payments". So in Jan 2025 (60 months) instead of owning the car you still have 6 months left to pay so you still owe money on a car that's even older.

And if you decide to trade it or sell it say 3 years into the term then you owe more on it because you deferred the payments.

True... My guess is you are still racking up interest costs in that case and "that's how they get ya" but obviously if it's 0% that doesn't apply.

jspbtown wrote: I guess if your job is uncertain than its nice to not have to pay for a while....but if your job is that uncertain should you be buying a new car?
Since when has that stopped someone? :D

Wed May 13, 2020 4:50 pm

I need to go by the local "we buy anything" lot and see how many jacked up pickups they have. Typically, as the economy shrinks, the inventory goes up. The oilfield folks here have been saying they will have to lay off at least half of their employees, but I haven't seen any big announcements in the news yet, but they could be waiting in hopes of getting more government bailout money.

Wed May 13, 2020 6:02 pm

The oil patch and related service industry here in this area have laid off closer to 90% of thier workers and some fields have shut down all of thier wells and facilities. Some are running about 5% of normal just to keep the equipment and pipelines from rotting with dead fluid. Our shop has given everyone a permanent lay-off and locked the doors until further notice.

All this by the way is because of people 1/2 way around the world having a price pissing match and has been complicated by the present stay at home policies.

Car and housing markets here in the immediate area are at a dead standstill. There is still some action in the cities though.

Wed May 13, 2020 9:24 pm

Is 567,000 cars dumped on the market a problem?
https://jalopnik.com/a-hertz-bankruptcy-could-sink-an-already-struggling-use-1843414354

Quote: Used car prices have been wonky through the current crisis, but it now seems they’ve decided on which direction to head: Down. Way down. And the eventual fate of car rental giant Hertz could flood an already underwater market.

Used car prices fell 34.4 percent in April, according to the Detroit Free Press, and used car dealers are cutting back on building up inventory. While the Freep says that used car prices could go up soon due to a shortage of new cars caused by plant closures, there is another factor to consider: The more than half a million cars currently sitting on beleaguered Hertz Car Rental’s books.

Hertz is currently considering its options for a possible bankruptcy, a move made necessary mainly due to a drastic slowdown in rentals thanks to covid-19 shutdowns, though it must be pointed out that Hertz hasn’t always made wise purchasing decisions when it comes to its fleet.

The two major banks holding Hertz’s debt, Deutsche Bank AG and Barclays Plc, need to decide in the next two weeks if it should allow Hertz to unload some of its fleet to pay the bills or simply slip into bankruptcy. But selling cars at the moment probably will not help much, considering tumbling used car demand. Hertz is currently on the hook for the leases on 567,000 vehicles, with another 200,000 internationally, spread out across its 12,400 locations. Here’s how Autoweek breaks down the options facing the company:

Even when the used car market begins to bounce back, the ability to sell all of these cars at their market value may be a question of years, not months.

Hertz’s future may depend on when airlines get flying again, as the company makes most of its cash through travelers. That is, in the increasingly unlikely event that the company can make it to the end of this crisis and start turning a profit again soon.

It’s a vicious cycle: used car prices are low, so Hertz has to sell more used cars to make enough to stay afloat, leading to even lower car values. A bankruptcy would also trigger a massive sell-off of the fleet, causing the same effect. Unfortunately, investors, shareholders, and banks dislike uncertainty and like money; Hertz simply has too much of the former and not enough of the latter.

Thu May 14, 2020 8:38 am

Jon Schmid wrote: I'm tempted to buy a new car (not really) under these circumstances. I own 4 cars. The newest is 20 years old (wife's Toyota Avalon). Then there is my 1996 Toyota T100 4X4. Finally, my Porsche 356's (both well north of 50 YO). And they all run fine. So for those of you buying a car and worrying about its worth 5 years from now, unless it's a total POS, hang onto it. Eff the depreciation--that only kills you if you want to dump it in a few years. And, unless your company is paying for it, NEVER lease.

I bought a then new 2012 GTi zero down sign & drive 60 months. Now has 170k and had been meticulously maintained with all of the known weak spots addressed (I'm not concerned about the engine "grenading").
Anyhow, I've pondered going back to VW and taking a look at the new stuff but have decided I'm gonna hang on to what I have. No payment vs. $450-500 mo. even with no interest is a no brainer... even if the engine grenades :shock: