Falling trade in values?

[xray]

I checked on kbb and it looks like trade in values have plummeted about 9% month to month. I though I could take advantage of low interest rates for a trade in (up), but the math doesn’t work now.

Maybe the used market will improve in a few months?

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[viper88]

I checked on kbb and it looks like trade in values have plummeted about 9% month to month. I though I could take advantage of low interest rates for a trade in (up), but the math doesn’t work now.

Maybe the used market will improve in a few months?

The economy is very volatile and in unchartered territory now. I suspect it will be a while before we see any normality. All automotive sales are down. There is apparently 0% x 36 months on Wranglers now. Kind of goes hand in hand. High discounts on new = low trade-in values. You can always try selling yourself private party.

 

[dsgrey]

Supply and demand. If new ones aren't available due to production being shutdown, used values will rise. If the market stays down and the used market gets flooded with repo'd vehicles then used values will plummet. It's like rolling dice right now on predicting the future.

 

[xray]

Supply and demand. If new ones aren't available due to production being shutdown, used values will rise. If the market stays down and the used market gets flooded with repo'd vehicles then used values will plummet. It's like rolling dice right now on predicting the future.

This may or may not be the future scenario. I think that banks, unlike before, are trying to avoid a spectacular repo-style meltdown.
Definitely uncharted waters like the poster had said since it's uncertain how the market will shake out. In the current case it's not a fiscal breakdown, but a wholesale shutdown. There's a massive stoppage in capital for consumer goods - but I guess we'll keep watching to see what happens to the market in the next few months.

 

[Amaruq]

If they’re not selling, wouldn’t they be more willing to give you fair trade value to secure that sale?

 

[viper88]

If they’re not selling, wouldn’t they be more willing to give you fair trade value to secure that sale?

The issue is determining what "fair" trade value is now? It's unchartered territory now.

I think there will be some deals based on the past.

This happened back in 2008-2009. There were some unbelievable deals. I bought a few cars back then. Some desperate dealers will take losses just to try getting cash flow. They can't keep doing that. It's like borrowing from Peter to pay Paul. They eventually will go out of business. Back then a LOT of new car dealerships went under and out of business.

 

[Nole_Dynasty]

The economy is very volatile and in unchartered territory now. I suspect it will be a while before we see any normality. All automotive sales are down. There is apparently 0% x 36 months on Wranglers now. Kind of goes hand in hand. High discounts on new = low trade-in values. You can always try selling yourself private party.

Where do you see the 0% financing?

 

[viper88]

Where do you see the 0% financing?

This thread. Might be regional though? Double check.

https://www.jlwranglerforums.com/fo...ngler-now-0-for-36-months.48841/#post-1076463

 

[SecondTJ]

Where do you see the 0% financing?

Only good until 4/14/20. Looks like it’s not available on 2-doors or Rubicon.

 

[viper88]

Only good until 4/14/20. Looks like it’s not available on 2-doors or Rubicon.

No 2-doors and Rubicons make sense. Not a lot of those in inventory. The majority of unsold inventory sitting on lots are are Unlimited models. I took a quick look at other Jeep deals. Looks like the only 0% x 84/mo deals are for really undesirable models like front wheel drive Compass models.

 

[four low]

No 2-doors and Rubicons make sense. Not al lot of those in inventory. The majority of unsold inventory sitting on lots are are Unlimited models. I took a quick look at other Jeep deals. Looks like the only 0% x 84/mo deals are for really undesirable models like front wheel drive models.

That will change as this situation stretches out. 84 months, 0% is on that chart for all those trim levels listed, they are planning ahead.

 

[Dkretden]

The issue is determining what "fair" trade value is now? It's unchartered territory now.

I think there will be some deals based on the past.

This happened back in 2008-2009. There were some unbelievable deals. I bought a few cars back then. Some desperate dealers will take losses just to try getting cash flow. They can't keep doing that. It's like borrowing from Peter to pay Paul. They eventually will go out of business. Back then a LOT of new car dealerships went under and out of business.

And it feels likely to me that a lot will also crater in this recession/depression.

 

[viper88]

And it feels likely to me that a lot will also crater in this recession/depression.

My fingers are crossed that the economy improves and that does not happen but you might be right.

 

[Rdmitch]

the used market is spotty these days. i’m looking for a 2016-2018 JK 2 dr for the wife and the pickings are terrible and over the KBB market value. since i’m not in any hurry i’m just gonna wait till the right deal arises.

 

[Dkretden]

My fingers are crossed that the economy improves and that does not happen but you might be right.

I don’t see anyway to avoid it at this point. Today showed the worst weekly unemployment claims data since the Great Depression. If we don’t find a way to get folks safely back to work within a month and consumers willing to go to that store or restaurant or bar or movie theater......... look out.......

it is very easy to shut everything down.

it isn’t as easy to get it all started again.

And, if we don’t try to get it restarted soon, it’s going to be even harder later..... Many large businesses will survive and potentially prosper ...they will,potentially hire hundreds of thousands of new employees. But the backbone of the economy is small and medium business. They will not.

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