Used cars are still expensive

[ua_guy]

Nissan Rogue SUV approx $24k. To the extent there are deals in the current market I think it's for used cars (vs. SUVs or Trucks).

Lucky kid! Super low miles for being a few years old.

[srblanco7]

Lucky kid! Super low miles for being a few years old.

Picking it up this Thursday and he's pretty excited - though he's a bit concerned with his finances, since our deal with our kids requires them to contribute to the purchase (he's kicking in $8k from his savings toward the purchase). Besides his college choice, this is the biggest financial commitment he's made. In both cases I think his decision making and rationale has been solid.

I will note there were plenty of Kias and Hyundais available as used cars but we're steering away from them given their history of engine issues and that they seem rather easy to steal.

https://www.thetruthaboutcars.com/ca...inues-44497118

[kork13]

Picking it up this Thursday and he's pretty excited - though he's a bit concerned with his finances, since our deal with our kids requires them to contribute to the purchase (he's kicking in $8k from his savings toward the purchase). Besides his college choice, this is the biggest financial commitment he's made. In both cases I think his decision making and rationale has been solid.

That's awesome. I love the idea of making kids have literal buy-in. And it's great that he's taking the cost seriously, it'll likely mean he's more responsible for it & takes better care of the car. Of course, the fact that he has $8k to cough up for a car speaks volumes itself for your son's level of responsibility. I hope he enjoys the car!

[srblanco7]

That's awesome. I love the idea of making kids have literal buy-in. And it's great that he's taking the cost seriously, it'll likely mean he's more responsible for it & takes better care of the car. Of course, the fact that he has $8k to cough up for a car speaks volumes itself for your son's level of responsibility. I hope he enjoys the car!

Thanks Kork!

[QuarterMillionMan]

West Covina Jeep (just 10 miles east of Los Angeles) has plenty of 2023 Compasses 4WDs for $23,400 brand new. If I were in the market I will go there.

[ua_guy]

West Covina Jeep (just 10 miles east of Los Angeles) has plenty of 2023 Compasses 4WDs for $23,400 brand new. If I were in the market I will go there.

In the last two months, a lot of automotive journalism spin has been focusing on Jeep's inventory glut. Specifically, they had a 753-day supply of Jeep Renegades on dealer lots here in the US, more than 350 days inventory of Compass models, and more than 280 days inventory of their Gladiator pickup model. Tagline: With increasing incentives across the industry in general, and inventory piled high, you should be able to get a smokin' deal on any of those - maybe even better than the evidence you already posted above!

In my opinion, they're not bad little cars at all, and the Gladiator is quite a lot of hardware if you're offroad-inclined but also need the utility of a pickup. I would, however, hate to be someone who might have paid close to MSRP for one two years ago when inventory was constrained! The only way to get value out of those situations is to keep the car forever and drive it everywhere.

[QuarterMillionMan]

Carvana's estimate for my 2018 Dodge Journey is $4400 but I'm not ready to sell. The monthly payment on an above 2023 Jeep Compass looks about $450 with 5.2% interest which I can handle but don't want it.

[ua_guy]

I saw Vroom (Online used car retailer, nationwide delivery) just went under. I believe Carvana was having similar trouble but is managing to stay afloat. They all bid up the price of used cars and overpaid as a soft automotive market approaches.

[srblanco7]

An update on used car prices:

Used vehicle prices at auctions dipped another 0.2% in January 2024 from December 2023, not seasonally adjusted, to $18,074, the lowest since March 2021, and are down $4,828, or 21.1% from the peak in May 2022, according to the Manheim Used Vehicle Value Index (red line in the chart).

The plunge has now worked off over half (55%) of the historic and ridiculous 63% spike from February 2020 through March 2022, according to data from Manheim, the largest auto auction house in the US and a unit of Cox Automotive.

Retail prices have dropped 11% seasonally adjusted and 13% not seasonally adjusted from their respective peaks, as of December, according to the CPI for used vehicles.

If I'm reading this correctly, wholesale prices have dropped a fair amount more than retail. I believe this is what put pressure on Vroom and Carvana - much of their inventory was purchased near the peak and the downward pressure on retail prices (with presumably more to come) was resulting in operating losses. 2024 new car inventory levels are also expected to reach pre-pandemic levels, which will likely result in pricing pressure there as well.

Generally speaking I'd take this as good news for consumers.

[ua_guy]

I watch car listings a lot, and seat-of-the-pants feel is that prices are really starting to soften, both private and dealer used car listings. The "I know what I have! No lowballs!" -people are having to simmer down in this market. You see it with classics and hard to find stuff.

[QuarterMillionMan]

In 2 years when I plan to buy another new ICE vehicle I hope the prices come down. I live in an apartment so an EV is impossible for me unless my apartment installs chargers but I doubt it.

[FrostedMoose]

I buy a new tundra every year. 3 more months.

[LivingAlmostLarge]

We in such a terrible place. Potentially needing a new car

[ua_guy]

We in such a terrible place. Potentially needing a new car

Uh-oh. What happened?

You might not be in as bad of a spot as you think if you need to purchase a new or used car...dealers HAVE to move inventory, and high prices and interest rates mean a lot of stuff is not moving. Calling their bluff on something they'd be eager to unload might get you a good deal.

[myrdale]

I buy a new tundra every year. 3 more months.

After trade in, on average what is the out of pocket expense for doing this? $5k per year?