Will Vehicle Prices Ever Decrease?

[Blandry]

don't blame on your grandparents....just assuming you even HAD a grandpa...

 

[KoolBreeze]

Many of us need bigger trucks for interstate use. I always swore I would never buy new but the more I look at it the more sense it makes.

The improved reliability and increased safety combined with more power makes for a strong argument.

My point is that there isn’t a “need” to change vehicles very often. People buy them because they want them and don’t seem to care what it costs anymore.

My wife and I have 3 vehicles, the newest one being 7 years old. They are all plenty reliable, including the ‘95 pickup. I would not hesitate to strike out across the country in any of them.

 

[Fatcamp]

My point is that there isn’t a “need” to change vehicles very often. People buy them because they want them and don’t seem to care what it costs anymore.

My wife and I have 3 vehicles, the newest one being 7 years old. They are all plenty reliable, including the ‘95 pickup. I would not hesitate to strike out across the country in any of them.

Gotcha. I think it's about appetite for risk. I have a 2001 4runner I would take anywhere, but that vehicle can't tow a fifth wheel with a boat behind it.

For that type of activity an older vehicle can do it, but for me, newer vehicles have a lot going for them.

 

[bozeman]

I think you summed it up @Fatcamp - need a bigger truck to pull another 'toy'......I'm all for enjoying life, but only if its debt free.

I had a friend with over $125k in truck and boat griping about paying a $7 shipping fee on a $7 part.........SMH

 

[william schmaltz]

I had a friend with over $125k in truck and boat griping about paying a $7 shipping fee on a $7 part.........SMH

This reminds me of all the guys that complain when the "subsistence" caribou hunts get shut down early and start moaning how they need that 100lbs of smelly caribou meat to feed their family. There may be some truth to that I guess; can't be much money left over when they're all heading off to caribou camp with a brand new duramax, a toy hauler 5th wheel, and a couple ATVs.

 

[Fatcamp]

I think you summed it up @Fatcamp - need a bigger truck to pull another 'toy'......I'm all for enjoying life, but only if its debt free.

I had a friend with over $125k in truck and boat griping about paying a $7 shipping fee on a $7 part.........SMH

This is all an illusion and can be over in a instant. That truck payment means little but the memories we are making are something our kids will always remember.

 

[Coldtrail]

You might be assigning too much forethought to the dealers and the bankers. There is no master plan in this marketplace right now. I can tell you with great certainty that dealers are reacting to market conditions, not shaping them. If you don’t need a vehicle or want one then sit this dance out, but don’t kid yourself thinking that this will end in tears for the banks, and never forget that dealers make most of their money in the service drive.

The master plan is to take great advantage of the market, I get that, banks going 84mo on a car loan.....that's shaping the market and allowing a much easier path for a dealer to up sell. Giving me a ridiculous amount for trade so I buy a $70, 000 half ton pickup at 84mo rather than something used and priced $30, 000 less on a similar payment, that shapes the market. Pricing used vehicles the same as new so that the better option for the cutomer is to finance MORE money than they intended to keep a monthly payment down and a better deal to buy the new truck, shapes the market. A customer not having to leave padding for repairs because they can also finance repairs they may or may not have right into the price? Changes the market. Ultimately this falls on the customer to make the decision that suit their needs, but the goal of selling cars is to get as deep into the customer's wallet as you can, this extended financing really softens that in a way that makes them walk away happy to spend $60, 000 on a half ton pickup.

The thing that is still the mystery is what happens a few yrs from now when a big part of the population is sitting on junk vehicles and recreational vehicles and still making some pretty high monthly payments? not only will there be a surplus of junk for the bank to collect, but many of these people won't likely have the cash to spend on anything else. Add to that the unfortunate souls that just built and financed houses with $15 2x4's and $80 sheets of plywood last year and I only see a crash ahead. Hopefully i'm wrong,

 

[Graybush]

I’ll make no excuses for seeing a customer driving away in a $60k rig with a smile on his face knowing that my dealership made a healthy profit. We have 85 employees paying taxes, making mortgage payments and supporting their families. Our dealership supports multiple youth sports teams, 2 food banks, the high school football team and raises funds through golf tournaments for our police department. We also expect that $60k rig to be running fine long after it’s paid off. Our manufacturer builds amazing vehicles that are known for reliability and high resale value. Nobody walks in the door not knowing how much things cost, and banks don’t lend money for long terms unless the vehicle warrants it. Banks look at the 3 Cs - Colatteral, Capacity, and Character when they make the decision to lend.

 

[Coldtrail]

I get it, make money when there is money to be made that's business 101.

I guess in 6-10yrs when people see the numbers being offered by their dealers on a vehicle purchased in 2020/21/22 that they are looking to trade in we will know a little more about how this will all play out.

 

[11boo]

It hurt to let it go, but my 06 had near 300k miles. Needed tires and paint, trim parts were starting to fall apart. It was a duramax and was mostly trouble free.
I was too attached to it. A dumb truck. Then my friend with an 06 duramax called to gripe about having to pay 4800.00 for some repairs On his.

I was on the fence, I had a well used truck, paid off long ago. I figured on something breaking soon. I could afford to fix it when it broke, that was not the issue. The issue was this truck would be going far off pavement, often.
A breakdown 70 miles from town really brings everything to a full stop.

I had been looking at Tundras for a year. Called the sales guy, none in stock now but they had a mid trim one coming in nobody had a deposit on. He said he would hold it for me, 48k sticker. I ended up buying it. Sold my 3/4 T GMC for 10.5k.

Really like the Toyota.


dealer would not move on price, but I got a bed liner and 3 years of Toyota connected services thrown in.

 

[aftriathlete]

Well just sold my 2016 Ram 2500 for more than I paid for it 6 years ago. Crazy times. Unfortunately now I'm in the market for either a Tacoma, Frontier, or Silverado. I'm about to throw in the towel on even considering a Tacoma, the prices on those are especially insane.

 

[hawkman71]

don't blame on your grandparents....just assuming you even HAD a grandpa...

I don't know what this is about - I'm coming here on the last page but the few people I've heard about that didn't have a Grandpa (other than Jesus) include Cain, Abel, and Seth.

 

[Trial153]

I got a look a two different auction sale spread sheets from January, largest whole sale auctions in the northeast, both showed significant pull back on used price bids. I think you will see a trend towards more moderate used car/truck trade in prices shortly.

 

[Dackdack]

Not to get in your face but this is the exact mindset that the auto industry wants and the exact mindset that drives up pricing. Is a truck really worth $85k?? You thinking this is a good deal and doing it means that they just got another person to accept their price. Really screws the younger up and coming folks in the world man.

perhaps there's similiarities in this to the whole point game as well. Thanks boomers.

Well it’s 85k CAD. There’s a few reasons why it makes sense for me. I’m not saying it’s a good deal but for me I’d rather get something new over keeping something unreliable out of warranty. The reason for this is I charge mileage to the company I work for which brings in 600$ a month and I also have my own company that gives me some benefits as well whenever I use the truck for that business. So because of those reasons, and the fact I’m going to make money on my trade in after putting on 50000kms I think it makes sense . I’m 36, not a boomer yet pal.

 

[aftriathlete]

Well I spoke too soon. Literally left the house an hour after that post earlier about giving up on Tacomas to go look at a Tacoma that had just listed. Put a deposit on it and I'll pick it up next week after the bank opens up Monday. 2009 crew cab long-bed TRD Sport w/ 140K on it. Pretty well maintained from what I could tell, frame looked good. And I like the color. $16500, which I honestly feel was fair for the current market.

 

[tony]

Check that frame well, I had an 09 TRD 6spd, bought it used in '12. Drove it 4 years and rust starting to set in all over the frame. It was still sound but I have to wonder what it looks like now.

If the rear springs "squeak" there was was a recall on it to replace the pads in between the leafs. Again I had a TRD so I figure the leafs are different. Anyway I had the dealer give me the parts and I changed them out in about an hour. Couple of long crow bars and some brake cleaner in between each leaf.

Those 4.0s are great motors, easy to work on. Oil change is a snap as the filter sits on top of the motor. Get you a length of clear fuel line at least 3 feet long. You attach that right on the nipple that is on the bottom of the filter housing and run it to your drain pan.
I ran the mobil one synthetic oil and I think I changed the other fluids to synthetic as well

 

[aftriathlete]

I looked at a 2008 that only had 70K on it yesterday afternoon and the frame was toast. Also had the stock suspension still on it, which clearly was going to all need replaced very soon. So I passed on that one. This one looked really nice underneath though, and there's a good chance I'll wind up putting some kind of little 2-3" lift on it anyway so the suspension might not last long anyway. I don't have a handle yet on what recalls are still open on it, I'll have to figure that out in the next couple days.

 

[Forestryguy]

12-18 months and you will be able to pick new today vehicles up for pennies. The free money has run out, the little savings people had are depleted. People are playing the "I'll work a day" game to get back on unemployment. Wages are going to go back down. There will be a glut of products, and people that are sitting at home are going to want to get a job. But they are going to be unemployable for decent wages since they sat around and did nothing for the past 2-3 years. Banks are going to be repoing more than they ever have.

Save your pennies and be ready to buy things cheap in a few months.

 

[Junkball]

Well I spoke too soon. Literally left the house an hour after that post earlier about giving up on Tacomas to go look at a Tacoma that had just listed. Put a deposit on it and I'll pick it up next week after the bank opens up Monday. 2009 crew cab long-bed TRD Sport w/ 140K on it. Pretty well maintained from what I could tell, frame looked good. And I like the color. $16500, which I honestly feel was fair for the current market.

That seems to be a great deal in today's market. A buddy has had an 08 for a decade now and racked up 300k miles. He purchased it with 60k, so it's seen some driving, and is still in great shape. That vehicle should serve you for many years to come.

 

[Yoder]

I am considering a new vehicle myself right now. To me it seems to make sense. I paid 50k for my truck 18 months ago and I’ve had a few warranty issues so I’m wanting to unload before warranty runs out. I’ve been offered 60k on trade today and the new one is way more loaded and is 85k at 1.9%. So with some cash down and the tax benefits of trading, it seems reasonable to me.

Yes, $85k for a vehicle sounds totally reasonable.