Will Vehicle Prices Ever Decrease?

[Baddog]

I just sold my 2020 superduty with 26k miles for more than I paid and bought a new one that’s spec’d slightly nicer for a difference of 9k. I feel like that was a decent deal, but still a luxury in life.

 

[Maverick1]

I am glad to view vehicles as little more than a functional means to get from point A to point B. To each their own!

 

[treillw]

The shit I buy for vehicles isn’t going up. I keep it in the 10 year old at least category. There’s some good ones out there, although they usually aren’t advertised. Plus I can kinda work on them still.

The Jeep I have now is 18 years old. Paid $2800 and only had to replace a drive shaft u joint and water pump. Can beat it like it owes me money too!

I could keep driving it, but one day it's going to let me sit in the snow in the dark way back into a ranchers field where I shouldn't be and I'm going to have a LONG walk out of there.

 

[trazerr]

It seems like the current market is never going to end/change. The chip shortage and new vehicle demand has created an insane market for vehicles. Crazy times!

Pre covid my 2018 Tacoma was worth $31.5k high end. When I checked a few months ago it was worth $41.5k high end. I paid $32.4K OTD for it in 2017… I was offered 37k sight unseen by a dealer in July even when I was testing the waters.

Im looking to get the new generation Tundra and fortunately for me my two local dealers are both below MSRP with no ADM, extra fees, tint, etc. Yes, pretty damn rare by today standards especially for a brand spanking new model/generation.

So It would be smarter for me to sell my Tacoma and buy a new Tundra right now rather than wait for the market to go back to normal. Pre-covid times a brand new (old gen) tundra was about 2-4K off msrp around here. Assuming the same thing happens to this new model and I’d have less money in my pocket if were to wait for the market to return to “normal” as my Tacoma would probably drop to $30k or below by then.

I know my situation is pretty unique/specific and not the norm for most people. I know a lot of dealers are adding 5-15k to new rigs. I’m just in the right place and the right time right now to do pretty well with the given situation.

 

[Super tag]

I ordered an F250 platinum last May, truck came in early December. Now the same truck can’t be configured the way I ordered mine, chip shortage. When I ordered it there were 53 truck orders in front of me, when I picked it up there were over 100 on order and the price is 8-12k more depending on the package. I don’t see this changing anytime soon, the supply chain will take longer to recover than was estimated and now the shortages affect everything not just electronics.

 

[SGW]

To much money chasing to few goods. That is what happens when you give to much money away. During the pandemic we where suppose to have some good deals on everything, but for some reason everything went up in price. Crazy times I swear. I never needed a stimulus check but got one anyways. I will never understand that.

 

[Fatcamp]

If I needed a new vehicle I’d try to buy it now. Expect to pay MSRP plus some sort of addendum pricing. If you have a trade it will never be worth more than it is right now, and that will help offset the higher price on the new vehicle. Interest rates are still low, but that can’t last indefinitely. My 17 Tacoma is worth more now than when I purchased it…but there is no 60 months @ 0% on a new one available so I’ll be driving my 17 for a long time, God willing and the River don’t rise.

So what is your dealership planning on doing for trading. The post above yours sys they wanted him to surrender his truck and wait indefinitely for his ordered vehicle.

How will that work in the scenario you predict?

 

[Vandal 44]

After talking with multiple dealers, I don’t think car and truck prices are going to go down. The old supply and demand.

I was with one of my clients doing some training with the finance/business managers yesterday. I was helping with a car deal trying to get a person financing on his new truck. Customer wanted a lower payment, like everyone does. I gave him two payment options 84 or 96 months.

The customer chose 96 months. I asked the finance manager is that the only bank that will go 96 months, his response “hell no we have five credit unions that will go 96 months”

As long as people are wanting and asking for all these new features and advancements in safety and technology the auto manufacturers will keep building them and the prices will keep going higher.

If banks keep offering 96 plus month financing people will keep buying them


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[Graybush]

So what is your dealership planning on doing for trading. The post above yours sys they wanted him to surrender his truck and wait indefinitely for his ordered vehicle.

How will that work in the scenario you predict?

In our case we would take you out of your trade and provide a loaner vehicle for your use until the new vehicle arrived. That being said, we only offer this for inbound units that are expected within the next 45 days. It’s not an ideal situation for either party, but we are making it work whenever we can.

 

[Lawnboi]

If you need a vehicle…. You need a vehicle.

Same can be said for housing. I put my life on hold lo my enough waiting for the market, and look now, worse than it was!

If you can afford it and need a vehicle I wouldn’t hesitate. Same could be said for a home. Life needs to go on. Bunch of bulls it if you ask me in regards to realty and vehicles right now.

 

[hawkman71]

I have worked hard to not borrow when buying cars (although I have taken some loans at times). I've always bought older vehicles with close to 100k on them and rode them out for quite a while. It's harder to find good deals like that now. I'm amazed at how people can afford payments on such nice rides. I used to figure it was roughly $100/mo for every $5k borrowed (5 or 6 yr loan). That's getting to be a $1200 payment on a $60k vehicle! (and Expeds are pushing 85k now).

 

[NDGuy]

Well they can offer 120 month loans and make that the new normal. People would take the bait.

We are so screwed.

 

[NDGuy]

I think the answer is different for used or new.

Makes me want to puke, all the used trucks on the lot in ND are 30k plus with a lot having over or near 100k miles.

 

[Trial153]

1.9% on 60 months is like free money. If you have the cash flow put the minimum down and invest all the rest.

 

[fatlander]

The prices aren’t coming down. If you don’t need a vehicle, don’t buy one. If you do, buy one that you can afford.

Inflation sucks. It’s a great time to be leveraged in hard assets that appreciate. It’s a terrible time to get leveraged in depreciating liabilities.


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[QuackAttack]

When inflation is addressed, everything will go down.

sad thing is, only real way to fix it is to jack up interest rates…which will badly hurt other secto of the economy as people owe money big time.

it’s coming…

 

[MallardSX2]

I dont think prices on anything will come back down. I think companies are going to leave them right where they are at. I also believe that there will be a lot of job changing over the next 5 years because people dont get sizable raises anymore, you about have to leave to get more money.

Its a sad state of affairs. My company was ahead of this curve thank god but inflation basically made everything a wash on my end.

 

[Dust Rider]

IIRC, OP you can also buy a vehicle in Idaho and Washington and not pay sales tax on the vehicle if you can prove it will be registered in MT. DMV has info on that.
It seems we always pay more for vehicles being in the middle of the interior west. Kind of the how bad do you need it play. Pre pandemic it was always cheaper to go to Dave Smith in ID or down to SLC to save several thousand.

 

[justin davis]

The prices are crazy. I want a newer truck someday. I’m ok with used. But right now the used trucks are more than a new one. What the heck

 

[Winnie]

I don't think manufacturers will come down in price. They may slap on an incentive/rebate from time to time, but I think the price will remain the same or increase annually. There may be some price decreases on the dealer side.