Car Buying--What in the world has happened

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  #1  
Old 05-31-11, 07:43 AM
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Question Car Buying--What in the world has happened

I have bought a lot of vehicles in my 65 years. I have never bought new and I am a mechanic.
I have always thought that I got a better deal with a NEW Car Dealer then an individual, and I have checked with as many as 25 different dealers in my surrounding area.
I am shocked at the prices Individuals and Dealers are asking. I always consult NADA--Kellys--and Ecmunds to determine price and I have never paid Dealer Retail for a vehicle:NO NO NO:
In todays market, EVERY vehicle I have checked, is priced 1K to as much as 6K ABOVE any RETAIL appraisal I have checked.
Most of these prices are obtained from the internet sites and Negotiating starts from this price. Some are advertised a "No Haggle".
One dealer told me that most people don't care what the automobile price is--as long as they can make the monthly payment
 
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  #2  
Old 05-31-11, 08:02 AM
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It looks like the various valuation sources have not been keeping up to where the retail used car market has gone in recent weeks. High demand with low supply always means one thing and that is what you are seeing on the lots. Inflated used car pricing especially if the vehicle is relatively fuel efficient. Seller's market verses buyer's market.
 
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Old 05-31-11, 08:16 AM
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Originally Posted by equinox View Post
It looks like the various valuation sources have not been keeping up to where the retail used car market has gone in recent weeks. High demand with low supply always means one thing and that is what you are seeing on the lots. Inflated used car pricing especially if the vehicle is relatively fuel efficient. Seller's market verses buyer's market.

I feel the same way--The cars I desire are all Luxury or near luxury---BMW---Lexus---Mercedes---Infinity, and I do not Buy a 4 cylinder car--so I don't feel demand or fuel efficiency is the issue. I have also checked Toyota-- Ford--Nissan--Honda--Subaru and they are probably in greater demand.
 
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Old 05-31-11, 08:44 AM
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Yep...supply and demand. More people are probably holding cars longer (except those so well off that it makes no difference) so the vehicles traded in are either in very good condition...or poor condition. The bad ones are wholesaled out and the good ones are prob very low mileage and well maintained and thus command a premium.

Seems like I just saw an article that pretty much said the same thing. I think we're past the time in the economy where people are selling just to get out from under the payments, those have already been taken. Unless you find a gem thats 4 or 5 years old and owned by someone that just wants to get rid of it, the deals seem to be much less prevalent.
 
  #5  
Old 05-31-11, 09:08 AM
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The life of newer cars is much longer, so there is an increasing demand for the good used ones and higher prices.

The U.S. dollar is weak, so that makes imports, especially BMW, Audi, Mecedes and Infinity more costly and this also affects the limited availability of the used models of the same makes.

In a couple of years, the KIA Optima (Mercedes competitor) and the better Hundais will be a good value. Currently a 2 year old V6 Nissan Maxima (very slighly less than an Infinity) could also be a fit, but they are rare because of the performance of the 2.5l models.You can also go to Buick dealer and buy a one year old Opel that is a sold as a "new" Buick Century/Regal(?).

You could have bought a Volkwagen powered Bugatti Veyron (268 mph) in pure luxury a couple of years ago, because the U.S. cost has gone up $300,000 to $2,430,000 and you still have to wait for 2-3 year delivery after a 10% cash downpayment. - LOL

Dick
 
  #6  
Old 05-31-11, 09:20 AM
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Last week I read that there is a real shortage of used vehicles and many blame it on the "Cash for Clunkers" program. Shortages usually mean higher prices for what is available. Many who would not have thought about buying a new vehicle are now finding the cost of new to be only slightly higher than used.

I'm driving a 1997 Toyota Camry with a bit over 150,000 miles on it. I bought it new in January of '97 and since then I have put maybe $5,000 into it. While I might like a new car there is no way I can economically justify it, especially since I now drive less than 5,000 miles a year.
 
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Old 05-31-11, 10:46 AM
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I thought it was on 60 Minutes, maybe not. Here is an article that explains a bit:

Used car prices at 16-year highs: Time to sell? - The Early Show - CBS News
 
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Old 05-31-11, 04:33 PM
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Wifey can't buy cars, OK? She buys the first car she sees, seriously! Went to a Dodge dealership, she saw a Caliber. Small car, well made, but not my cup of tea. She bought it!! $12K. I knew it would be an albatross to get rid of when the time came. Well she got a hankering for another car. I put it in the Advertiser well above what I thought I would get (you can bargain down, not up). BAM sold the first day for $9500 and she had driven it for 3 years!
Wonder what my 2001 Ram Cummins with 392K miles would bring? Just kidding!! I've already amortized it out.
 
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Old 06-01-11, 08:13 AM
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Several dealers in my area have commercials that are not aimed at selling but instead they are focused on buying. "Got a good used car? We'll buy it".

We traded in a Honda Pilot a couple of months ago and the dealers we visited were all very generous - well above Blue Book - in their trade in offers. The car was cherry and had meticulous maintenance records. After we made the deal I actually had sellers remorse instead of the more common buyers remorse.

BTW - Don't believe the "no haggle" BS.
 
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Old 06-01-11, 09:47 AM
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BTW - Don't believe the "no haggle" BS.

Checked with THREE dealers and None would budge on their "no haggle" price.
Just yesterday I finally went to a local dealer and drove a 2010 Nissan Maxima. I made him a sensable offer to buy the car straight out with cash, a little above Edmunds Private Party Price.
He refused and dropped his price a $300 !!
I also realize that many dealers make money off financing so the best price is not allways given for cash payment
I then offered to trade my SPOTLESS 2005 Ford Freestyle Limited with 62K miles. He offered me Less then 9K
He stated he could not sell the Freestyle for more then 12 or 13K:NO NO NO:
IN THE PAST--I have traded many cars and always got close to Private Party Price for my trade and bought a different car for 1/2 between PP and Retal. NO MORE:NO NO NO:
I guess I'll just keep my two present cars
 

Last edited by Giles; 06-01-11 at 10:17 AM.
  #11  
Old 06-01-11, 01:24 PM
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Your last post touched on the place to look, those looking to trade. Even though the dealers play the "inflated trade against list price" game, they still offer poor trade deals. If you can find a private sale, those people have probably already run into a low trade offer and might have a bit more room. And in the class car you are looking at, often they have been treated rather well.

Bud
 
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Old 06-01-11, 01:33 PM
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Sometimes its all about timing...
When we bought our SUV 10 yrs back, we were trading in a '94 SE-R (the last year of the old style...I know, I know...I hated selling that little screamer, but my wife wanted some mass and height for her commute) and it was parked in a special trade in spot to be checked out. By the time we had finished our test drive and such, they had already sold it for just a couple of hundred more than they gave us for trade. I got the guys number and address and sent him the repair manual, oil and air filters.
 
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Old 06-01-11, 02:54 PM
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Talk about timing--Yes that is true--A few years ago, I found a Jeep Cherokee and she had to have it. I went to the dealer and made an offer, they refused and made a counteroffer.
We walked out and I told my wife to watch--they will stop us before we leave. We dragged around and she said he had walked into another room.
I go out and went in and told him I would give RETAIL DIFFERENCE between my Ford Thunderbird and the Jeep. He went out, looked at the car and left in it. He was gone about 45 minutes and we were concerned. He Took my offer.
Later that evening we got a phone call frome a person wanting information about the T-bird. TRUE STORY that will never happen again!!
Originally Posted by Gunguy45 View Post
Sometimes its all about timing...
When we bought our SUV 10 yrs back, we were trading in a '94 SE-R (the last year of the old style...I know, I know...I hated selling that little screamer, but my wife wanted some mass and height for her commute) and it was parked in a special trade in spot to be checked out. By the time we had finished our test drive and such, they had already sold it for just a couple of hundred more than they gave us for trade. I got the guys number and address and sent him the repair manual, oil and air filters.
 
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Old 06-02-11, 04:27 AM
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Happened to be chatting with one of my used car clients yesterday and he echoed the sentiment that used prices are up. His take was that if you loooked up the values in a 2 year old NADA guide that's about what cars are going for now. He also said he wasn't able to buy a single car at last week's auction in the city one county over; there was a buyer there from Alabama who outbid him on everything he was interested in and bought 85 cars. Lot of destroyed cars in that neck of the woods.
 
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Old 06-04-11, 07:56 PM
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These used car prices are going out of this world. This spring I 2002 chev, it was suppose to be in good shape. I knew it needed tires, but two months later it needed brakes. And now it needs a tranny, it keeps jumping out of over drive and some times third. The blue book on this car was higher, then I have paid in the pass for a new car, and I ordered it I didn't buy it off the lot. I would like to see what they get for a 70 340 duster with a 4 speed and headers now. If you could find I beat it is a lot more then the $3,500.00 I paid.
 
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Old 06-04-11, 08:08 PM
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"if you loooked up the values in a 2 year old NADA guide that's about what cars are going for now" That is what it looks like----I just wish I had known that about 6 weeks ago when I sold a BMW Z3. I looked it up in Edmunds and priced it at just below dealer retail. Sold it in three days to the first person that drove it. I have seen less quality Z3 at dealers for 2 to3K more!!!!
Originally Posted by the_tow_guy View Post
Happened to be chatting with one of my used car clients yesterday and he echoed the sentiment that used prices are up. His take was that if you loooked up the values in a 2 year old NADA guide that's about what cars are going for now. He also said he wasn't able to buy a single car at last week's auction in the city one county over; there was a buyer there from Alabama who outbid him on everything he was interested in and bought 85 cars. Lot of destroyed cars in that neck of the woods.
 
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Old 06-05-11, 07:41 AM
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Now that you guys have been talking about it, I went by a local reputable used car lot yesterday. The prices he is asking for used Jeep Cherokees is at least $2-3K higher than he was asking only a few months ago for the same amenities!! Guess I'll hold onto my Ram a while longer. 392k miles on it now, may be worth more when it turns over 400k. But at the same time, I can't justify trading it in on a newer one when the newer ones cost more than my first house!!!
 
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Old 06-05-11, 10:17 AM
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Originally Posted by chandler View Post
Now that you guys have been talking about it, I went by a local reputable used car lot yesterday. The prices he is asking for used Jeep Cherokees is at least $2-3K higher than he was asking only a few months ago for the same amenities!! Guess I'll hold onto my Ram a while longer. 392k miles on it now, may be worth more when it turns over 400k. But at the same time, I can't justify trading it in on a newer one when the newer ones cost more than my first house!!!
If a person checks, they will find out that their TRADEIN value is BELOW book Wholesale. Make an unacceptable cash offer (Be Careful) to buy the vehicle straight out. Then offer your trade with a reasonable offer.
 
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Old 06-05-11, 02:20 PM
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I just find it funny that more than 60% of the cars being bought by the age groups 20-40 and 65-85 are from Japan or Korea. I look at all my neighbors that just got laid off and ask them "is your unemployment check cover that car payment" And of course "not a clue" i know most of you think they are built here and they put people to work here. Truth is the profits go back to Japan and Korea. And I mean Billions of dollars. Taking more US money out of the country.
 

Last edited by Gunguy45; 06-05-11 at 02:47 PM. Reason: Removed unnecessary comment
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Old 06-05-11, 02:54 PM
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No one will get political with you, but we, as a nation, have been learning some hard lessons in the past few years. One is we have to start building our own quality items at an affordable price. We have had too much overhead to allow that to happen. Get the overhead in check and the prices will become more affordable, and we can keep that money where it belongs. Welcome to the forums!
I found it odd that the local GM plant would not allow foreign made cars in their employee parking lot, yet a large percentage of the materials in GM cars is made off shore. Only assembled here. That is why they call it an "assembly plant". Odd, because the Nissan hardbody pickup I was driving was 100% American made, including parts. Even the bolts were SAE instead of metric. So go figure.
 
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