The people who are going to be significantly "upside down" in their loans are people who bought, and didn't trade. People who have been trading, are getting the same increase for their trades as they're paying on the new vehicles.
Used Vehicle Insights
- Thread starter 13COBRA
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If you do your due diligence on your trade value, you'll be all right.
If anything, in the last 6 months I have seen FAR more customers demanding more for their trades than I have in the first 10 years I was in the business. It's been so publicized on local news channels, social media, etc...that used vehicle prices are through the roof.
Loans, maybe, I pay up front and keep em a long time.
Cool?
Even paying cash today, and not trading, you're not beating the depreciation aspect of the purchase.
When you say trading do you mean trading into a dealer and private party sales?
Can you explain how paying cash is not the best option when purchasing a new vehicle? I picked up a new truck 4 months ago and managed to get a little over 7k off MSRP (dealer ordered). I ended up selling my old truck to Vroom for 2200 more than I paid for it 4 years ago. None of the local dealers could not match their offer and the state I regsiter in does not offer tax credits on trades. I did take out a loan for my new vehicle but it will be paid in full on March 1st.
When I said trading, I mean trading one vehicle for another. Not necessarily trading into a dealer, but capitalizing on the higher trade in/sales price of your current vehicle, while buying a new one. So whether you sold to your neighbor, Vroom, Carvana, or traded it in at the dealer you ordered a truck from, you took advantage of the higher value of your trade.
Interest rates are at an absolute all time low. There is no reason to pay cash for something right now, period. Let your money work for you in a positive way, rather than as a depreciating asset.
I 'was' shopping for gently-used, low-miles truck to replace my Silverado last year, but quickly got discouraged and gave up. Prices are insane.
Then my trusty old car ('03 Cadillac DeVille) finally shit the bed, just rusted itself out, and I needed a car. It turned out the market for a used DeVille was the antithesis of the truck market, likely because it's an 'old man' car, haha. Anyway, there were plenty of vehicles at reasonable prices. I shopped the Hell out of them nationwide and ended up buying a 2010 DeVille DTS with 48k miles, from Arizona, with zero rust.... runs and drives and smells like new... for $11k.
Then my trusty old car ('03 Cadillac DeVille) finally shit the bed, just rusted itself out, and I needed a car. It turned out the market for a used DeVille was the antithesis of the truck market, likely because it's an 'old man' car, haha. Anyway, there were plenty of vehicles at reasonable prices. I shopped the Hell out of them nationwide and ended up buying a 2010 DeVille DTS with 48k miles, from Arizona, with zero rust.... runs and drives and smells like new... for $11k.
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Northstar V8, Large Luxury Boat, etc - murder resale value.
| Rank (By Percentage) | Model | % Used Price More than New | $ Used Price More than New |
| 1 | Mercedes-Benz G-Class | 35.6% | $62,705 |
| 2 | Chevrolet Corvette | 20.2% | $16,645 |
| 3 | Tesla Model 3* | 17.8% | $8,300 |
| 4 | Ford Bronco Sport | 16.4% | $5,766 |
| 5 | Chevrolet Trailblazer | 15.6% | $4,270 |
| 6 | Toyota RAV4 Hybrid | 14.8% | $5,298 |
| 7 | Chevrolet Suburban | 12.9% | $9,106 |
| 8 | Toyota Tacoma | 12.2% | $4,530 |
| 9 | Toyota C-HR | 12.2% | $3,230 |
| 10 | Kia Telluride | 12.1% | $5,552 |
| 11 | Kia Rio | 11.7% | $2,090 |
| 12 | Subaru Crosstrek | 11.7% | $3,524 |
| 13 | GMC Yukon | 11.3% | $8,258 |
| 14 | Toyota Sienna | 11.2% | $5,074 |
| 15 | Hyundai Accent | 11.2% | $2,010 |
| Overall Average | 1.3% | $553 |
Serious question...why in the hell would someone pay more for a used car when they can get the same car brand new for less? I guess the reason is that new car inventory isn't available. Which begs the question: if you don't need the car, why would you buy it? Are there that many people out there who are in desperate need for a car? This chart is insane!
Many have trade ins that are up this much if not more.
I understand that...I have a paid off trade in that I could take to a dealer and get more money for it than I could two years ago. But...I sure do love not having the monthly payment for a car I only drive back and forth to work. Call me crazy, but if you have a trade and it is paid for or you already have equity in it (you're not underwater), I'm still not biting on a purchase. I'd rather be paid off or owe less on my current vehicle than it is worth than pay more for a used car than a brand new one that is the same.
I hear you. Just traded in an MDX for a new Volvo. MDX seemed to be hitting a point where dated/limited infotainment would cause the price to drop like a rock. Since Volvo was at msrp and I was getting 6k more than when I checked last year, seemed like an ok deal.
Now when we looked at a Palisade and they wanted 5k over msrp, my wife, who is a complete tight ass, said f-that.
Ok.
I bought my wife a new 2021 Expedition last June. She's put 10,500 miles on it. Her new 2022 Expedition will be here sometime next month, hopefully, (thanks Truckers in Canada)... we leased it. It's worth about $8k more than the lease residual is. She's driven it for 8 months and it's cost us $800 in insurance, and about $900 in taxes. The $8k equity means that it actually made us money in the 8 months she's owned it.
I can see that...a car that has outdated infotainment will at some point depreciate to the point where it trades for much less than it does now. You gotta take advantage of the moment, and the car you chose was at MSRP (not over MSRP).
I'm not completely following you. So you paid cash in 2021 for the Expedition and now you are going to get $8k more than you paid for it when you trade it for the 2022? Just trying to clarify. In other words, you bought it, will get $8k more for it than you paid for it, and in the past year you paid insurance and taxes to the tune of $1700 combined?
If this is the case, you should send some money to the chap from Scottsdale who opened a GoFundMe so he could keep his Cobra while riding out a rough patch.
Kinda.
I leased it for my wife. One payment lease all up front. Suppose to have it for 2 years and 24k miles.
I'm getting all of my upfront payment back, plus $8k. I paid the taxes and insurance on it for 8 months. So I cam about about $6k ahead after having her drive it little less than a year.
Do you wish you had 15 wives? Lmao.
Absolutely not. haha
Thanks for the laugh though. Reminds me of an article I read a week or two ago about Osama bin Laden's brother trying to sell his Bel Air house. Talks about how they have 50+ brothers and sisters, and their dad had 20+ wives.
Buddy, I think your logic is right on the money. I shifted my goals when searching for a used car (to something not many folks looking at), and bought a like-new luxury car for short money. The car (2010 DeVille DTS) might not be a Lexus or Mercedes, but it was a bargain, even in this stupidly over-heated market. And IMO it rides/drives pretty much as nice as a Lexus or Mercedes. I'm thrilled with the deal.
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