Will Vehicle Prices Ever Decrease?

[go_deep]

I get a report every month that includes the estimated trade-in value for our nice truck. Price has dropped $20k in the last 6 months. It’s currently about $10k-15k higher than pre-covid prices (exactly what I paid for it). Hopefully we see those prices again, but who knows.

What has me curious is what happens when everyone goes to trade in their $80-$100k truck they bought at the peak, that’s now worth $10-20k on trade?

They'll roll the difference into a 84-96 month loan and not worry about it.

 

[maxx075]

I get a report every month that includes the estimated trade-in value for our nice truck. Price has dropped $20k in the last 6 months. It’s currently about $10k-15k higher than pre-covid prices (exactly what I paid for it). Hopefully we see those prices again, but who knows.

What has me curious is what happens when everyone goes to trade in their $80-$100k truck they bought at the peak, that’s now worth $10-20k on trade?

You're already seeing it. There are dealers that are having "upside down" sales that are reducing prices and then just rolling the negative equity value of the car into the new loans lol.

If you're stupid enough to pay above MSRP and especially stupid enough to pay a markup, well...ya kinda deserve it.

 

[MallardSX2]

Not vehicle related but I just picked up a brand new Homda Pioneer 700-4 for what they were selling for 8 years ago.

Same machine was selling for $4000 more 2 years ago....

So ya, it paid to wait it out.

 

[Ucsdryder]

Not my monkey OR circus but, thought I would share a snippet from an update by my fleet rep. He‘s a cocky little rascal but, I hope he is just half right!


“Makers are attempting to get their finances in order post covid with all that has occurred including chip crisis, multiple union strikes and ev debacle. EV= Executive Vacuum! They are bleeding, shareholders screaming and executives are extremely nervous! They now have the components and are doing what they know best (and what they must do)—turning up production! Unions are getting paid regardless… Used cars are starting to pile up as Dealers attempt to prolong the once in a lifetime profits! Most dealers actually faired well through this but, the makers have been taking it on the chin! They have a full production mindset and inventory will build through year end. Dealers will be forced to take new inventory or lose incentives! Consequently, dealers will be heavily burdened to liquidate used inventories (already experiencing dramatic cliff in wholesale market). Dealer attempts at holding SRP pricing along with current rate rash curbing demand, new inventory will stagnate after the “newness” of availability wears off into new year. Makers will not stop the train of new inventory but, they will have to protect the dealers! The games will likely begin Q2 25 ahead of several new model introductions with consumer discounts, rebates and financing offers. Declining consumer fitness will drive makers to lower risk assessments and stretch terms with house lending arms.“

He’s half right. Stellantis is in a tough spot. They just lowered msrp on most of their product and the new are stacking up. Subaru dealers are in a fight for market share and allocation right now and the gloves have come off. In general, new lots are filling up.

Used is stupid right now. You can buy a new Subaru for less than a used one in some cases. The wholesale market is going crazy, typical in spring. There just aren’t a lot of used cars right now because the 1-4 year old market that makes up the majority of the used was heavily impacted by Covid. All the buyers in that time frame paid STUPID money for new cars, MSRP, plus clear bra, plus paint treatment, plus, plus, plus and they’re upside down in their vehicles and unable to trade/sell them.

 

[Dos Perros]

Someone PM me when it's the best time to buy a 2019 Tundra with the 5.7 V8.

 

[CorbLand]

Someone PM me when it's the best time to buy a 2019 Tundra with the 5.7 V8.

If you read back through the thread. It was supposed to be the end of 2022, then it was 2023.

Also, get a 2018.

 

[Skerhunter]

Someone PM me when it's the best time to buy a 2019 Tundra with the 5.7 V8.

I have been eyeballing one that has sat on a dealer lot for over a year $52k still, no price drop.

 

[Dos Perros]

If you read back through the thread. It was supposed to be the end of 2022, then it was 2023.

Also, get a 2018.

Copy that on 2018.

I am convinced the future will be better than the recent past. That could be an emotional defense mechanism I suppose, but as I mentioned before I'm already seeing the FB market soften for stuff I follow.

 

[Dos Perros]

I have been eyeballing one that has sat on a dealer lot for over a year $52k still, no price drop.

That sad part about that is no one is driving it around putting miles on it, breaking it in for you. I want one with like 180k on it.

 

[thegrouse]

I still have not seen price drops on 2013-2020 Land Cruisers

 

[Ucsdryder]

That sad part about that is no one is driving it around putting miles on it, breaking it in for you. I want one with like 180k on it.

Should have bought the one I offered to sell on here a couple months back!

Dealership said it sold in 2 days. They’re quickly getting a cult following.

 

[SteveAndTheCrigBoys]

Should have bought the one I offered to sell on here a couple months back!

Dealership said it sold in 2 days. They’re quickly getting a cult following.

If only they had a 6.5 foot bed, crew cab option on that gen

 

[Ucsdryder]

If only they had a 6.5 foot bed, crew cab option on that gen

Why? The 6.5 double cab is perfect. I’m 6 feet and there’s plenty of room for me in the back. Tons of storage with the seat folded up. Put a topper on the back and sleep in the bed. I’m convinced it’s the best hunting rig currently made.

 

[BRTreedogs]

Why? The 6.5 double cab is perfect. I’m 6 feet and there’s plenty of room for me in the back. Tons of storage with the seat folded up. Put a topper on the back and sleep in the bed. I’m convinced it’s the best hunting rig currently made.

Big cab rules.
Double cab drools

 

[Ucsdryder]

Big cab rules.
Double cab drools

Says the guy with a little subaru…

 

[bowhuntercoop]

Big cab rules.
Double cab drools

I’m in the market as well and pretty much made up my mind on crew max only just based of looks. Double cabs look so goofy with the back door the way it’s curved. Idk if I could do it even with the 6.5 bed being practical.

 

[wind gypsy]

Not vehicle related but I just picked up a brand new Homda Pioneer 700-4 for what they were selling for 8 years ago.

Same machine was selling for $4000 more 2 years ago....

So ya, it paid to wait it out.

View attachment 698829

That exact machine is on my "to buy soon" list. What'd ya pay?

 

[BRTreedogs]

Says the guy with a little subaru…

That's all practical my man.
I drive about 40k year just for work.

If I drove a tundra to work I'd loose so much money it wouldn't be viable.

I'm not so vain that I push economics aside to pretend I look cool.

With the money I save on fuel alone I pay the payment on the car and insurance and still have money left over.
With a tundra the fuel economy alone id be in the hole.

 

[Ucsdryder]

That's all practical my man.
I drive about 40k year just for work.

If I drove a tundra to work I'd loose so much money it wouldn't be viable.

I'm not so vain that I push economics aside to pretend I look cool.

With the money I save on fuel alone I pay the payment on the car and insurance and still have money left over.
With a tundra the fuel economy alone id be in the hole.

I’m just busting your stones!

I’d drive a Subaru to the elk woods in a heartbeat.

 

[CorbLand]

I’m just busting your stones!

I’d drive a Subaru to the elk woods in a heartbeat.

I daily a 2004 RAV4. Depending on where I am hunting, I can take it quite a few places. It kicks ass scouting for ducks. 23-24 MPG beat the hell out of the 12 MPG my Tundra got.