Used car prices

[SteveH]

Which car is this, data?

[datachicane]

Which car is this, data?

Sorry, my image host decided to mess with me, it's the '58 Ford wagon I picked up a year or so back, sat in a field in Eastern Oregon since sometime in the late '90s.

https://lh3.googleusercontent.com/pw/AIL4fc9d_TDBvDBc2Pzs39ciCzp6C58Wj6y622bEWi9s2Npc_I QNMfwv4geuysiYsdTPyUBBT2CabTapZG7ajjB6eXmQn8uqtNp_ bF0diOwXA-w1DAUGr8czMvmBSW4jOU2Cv_uclBkKehKHIawSITgmffhQPw=w 1284-h963-s-no?authuser=0

[SteveH]

That is very cool:thumbup:

[nrc]

It's those metal dashboards with no restraints but dad's arm the taught us respect for physics as a kid. :D

But wait. Do I see a padded dash? How posh.

You're lucky there aren't many drive-ins these days because I suspect that this would automatically pull in every time.

[datachicane]

No padded dash here- I've managed to carefully sand through some obscuring primer shot on the front fenders and uncovered U.S. Gov't lettering shadows, which explains the sanded-off logos on the doors. The Oregon license plate is an April 1965 issue, which would be perfect for a 7-yr old fleet car to go to auction. I've got a bit more sanding to do, but it was likely either Forestry or an AEC fleet car out of the nearby Hanford reservation.

[nrc]

https://site.manheim.com/wp-content/uploads/sites/2/2023/11/ManheimUsedVehicleValueIndex-Line-Graph-Nov-2023-2.jpg

A lot of the car market sources I follow say that the dominoes are about to fall in the car market. Dealers are trying desperately to cling to their inflated prices and inventory is stacking up.

[G.]

Sorry, not USED car prices, but I have a rather urgent question for y'all.

My son wants a very specific hybrid SUV -specific to the color and options. No compromise on his Kia Sportage.

Go god! My entire family is becoming Hyundai/Kia! No Theya II engines, but I still don't trust them...

Anyway, the 2024 is in extreme demand, and most folks are just ordering it from the plant. He is doing just about everything wrong with this purchase despite what I've tried to teach him over the years. He gave the dealer a $500.00 deposit, they looked for about 2 weeks, then told him they neded to order one. Fine. He'll get what he wants.

He never discussed price. In general, the style that he wants is still going for about $1300-$2300 UNDER MSRP.

What can he expect to get robbed, I mean, pay for the car? When a dealer orders a bespoke car, do they get the normal holdback? Is it possible to get a good deal, or is he going to get reamed?

Should he go negotiate the price NOW? (yes.)
Does he have any leverage? They know that he wants it badly, and they know that if he walks away they can sell it immediately to someone else. And probably keep his $500.

What would you do?

Thanks in advance. This is what I get for working in a dungeon without cell service. He was making decisions and listening to the sales people far too much. (I don't know how many times I've told him that once they start asking "how much per month are you able to pay?" that ONLY reply is to tell them "18 bajillion dollars, now lets get back to out-the-door price.")

[SteveH]

What has he signed? That might determine what's in store. Assuming he hasn't committed to anything, he should have the price discussion now. And base it on the 'out the door' price. That would take in consideration all added fees and taxes. Assuming he hasn't signed anything he can walk away with his $500 if the price doesn't meet his expectations. Which means he needs to determine what that expectation is long before he enters the dealership.

[nrc]

He may be able to negotiate now but the dealer has no motivation to do that before they have the car on hand. Obviously he has given away all his leverage other than sticking them with another car in their inventory and $500. He should find one of the spreadsheets online that has all the factors for an "out the door" price and calculate himself what he's willing to pay.

Get pre-approved for the financing through a credit union but don't let them distract from the OTD pricing by talking about monthly payments. Just be able to calculate the payment from the OTD price so you can make sure the payment matches if you go with their financing.

If he's planning a trade-in, get a price in advance from Carmax and Carvana. Understand the tax implications of a sale vs a trade-in and be ready to sell separately if they don't make it worthwhile.

Finally, when they call to tell him the vehicle has arrived he should tell them to kick rocks and go buy a Mazda CX-5.

[SteveH]

A Third Of All Drivers Are Underwater On Their Cars (https://jalopnik.com/a-third-of-all-drivers-are-underwater-on-their-cars-1851660628)


Americans have a huge automotive debt problem right now. A new survey shows that 31 percent of American drivers who financed their car are underwater on their loans. The problem is even worse for EV owners – 46 percent of those folks have negative equity in their electric cars. Furthering the issue is the fact that over half of the drivers surveyed overestimated their vehicle’s value. Rough.

[nrc]

A Third Of All Drivers Are Underwater On Their Cars (https://jalopnik.com/a-third-of-all-drivers-are-underwater-on-their-cars-1851660628)

Make sense. Anyone who financed a car between '20 and '23 lost a big chunk in value in the past year. Unless they paid a big down payment they're underwater.