Falling trade in values?

[guarnibl]

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.

Agreed. I have a feeling next week will be 2-3x this week as far as unemployment claims. We will likely go to 50%+ unemployment.

That said, most likely the government will just bail everyone out at any cost and print their way out of this. It's interesting because normally that would be a huge issue -- but since nearly every country is experiencing the same issue, I don't think it will matter. Think of it as erasing fiscal history during this time. They're going to have to completely break the fundamentals of everything to come out of this.

The problem is that, it will all come too late and we will already have lost many of those businesses. Some will re-open and others will not.

Also no one is going back to work until we feel safe. That means public mask requirement + anti body testing + rapid infection testing. We are not a couple months away from this.

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[Moreace]

Show me the used Sky One Touch, loaded Wrangler with low miles! Guess I'll have to wait a little longer given they started in 2019... also no trades/ used cars able to come in right now.

 

[Amaruq]

Show me the used Sky One Touch, loaded Wrangler with low miles! Guess I'll have to wait a little longer given they started in 2019... also no trades/ used cars able to come in right now.

What do you mean? You think dealers are denying trades?

 

[Moreace]

What do you mean? You think dealers are denying trades?

I think dealers for the most part are closed and doing no (or very little) business (right now)

 

[UTES]

My local Jeep dealer, Ken Garff in West Valley, Utah, held my new Sahara hostage because my trade in had since tanked in value. The sales Mgr said, "I don't need to discount your Jeep because it's the only Diesel we've received and people want it." I told him I would rate them poorly. He did not care.
Afterwards, the Sales Mgr called and asked me why I rated them low. I told him, and made sure he knew I would spread the word to my friends as well. I had bought 5 vehicles there and told him I would not buy another.

 

[viper88]

My local Jeep dealer, Ken Garff in West Valley, Utah, held my new Sahara hostage because my trade in had since tanked in value. The sales Mgr said, "I don't need to discount your Jeep because it's the only Diesel we've received and people want it." I told him I would rate them poorly. He did not care.
Afterwards, the Sales Mgr called and asked me why I rated them low. I told him, and made sure he knew I would spread the word to my friends as well. I had bought 5 vehicles there and told him I would not buy another.

Was the diesel ordered for you? Or one he had on the lot you wanted to buy?

On principle, I would have taken the keys to the trade-in and walked IF he changed a pre-negotiated trade and selling price on a custom order for you.

 

[UTES]

Yeah, you're probably right, viper88. I had waited 10 weeks for this Jeep and it was fully optioned at $58,000 MSRP. The trade-in that was worth $90,000 was down $10,000.

My wife and I talked and, frankly, we felt stuck. This new Jeep really is special and we plan to have it for many years. So, we folded - yet here I am telling others what happened.

Thank you for the comments. May you and your family be happy and healthy.

Hunter

 

[viper88]

Yeah, you're probably right, viper88. I had waited 10 weeks for this Jeep and it was fully optioned at $58,000 MSRP. The trade-in that was worth $90,000 was down $10,000.

My wife and I talked and, frankly, we felt stuck. This new Jeep really is special and we plan to have it for many years. So, we folded - yet here I am telling others what happened.

Thank you for the comments. May you and your family be happy and healthy.

Hunter

A lot happened to the economy between now and when you ordered 10 weeks ago. It's unprecedented. It was a still shady move on the dealer's part but no one expected this to happen to the economy. Saying that…Health is wealth..money means nothing if we don't have our health. It's never been so obvious.

You have every right to vent. That dealer should have made a compromise if they made you a deal and changed it. They have the right to do business they way they choose. You and your family, friends, and other forum members who read about your deal have the right to choose who they do business with.

Don't look back and enjoy the new Diesel! Stay healthy and safe!

 

[cosine]

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.

i agree with you and viper88. i'm seeing a lot of small businesses closed now and will be questionable whether or not they will open back up and survive. once the economy opens back up, i can see a "struggle" in employments. i did hear something on the news that the us will be looking at all of the stores and restructure the economy so there wont be a lot of stores on every corner of the streets.

 

[cosine]

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?

like other have mentioned that the economy is unstable right now. i dont see it improving any time soon, who knows. the dealership is in a shit hold with the current new and used inventory. they are loosing money with the interest with the new autos. like viper 88 said, they could offer a great deal and take a lost. but they are taking a chance in shutting down as it happened in 2007-2008. for example in my county population of 330+k people. there were 5 ford dealers. in 2008 it went down to 1. chevy went from i think 3 to 1. same with dodge. jeep used to have a there own dealership. now its join with dodge.

as for the used auto market, jeep was offering a fair (low) value for the trade in on the wrangler. but selling them right up there with the new prices of the wrangler. so, i can see that they are not taking any trade ins now because they are overstock on the used jeep and cant sell them due to the covid 19.

 

[viper88]

It's not just Wranglers. Actually I bet Wranglers are doing better then most other cars. Manheim auctions just announced used cars fell 10% in value from the average. This is very unusual. That will trickle down to used retail cars soon.

 

[Dkretden]

It's not just Wranglers. Actually I bet Wranglers are doing better then most other cars. Manheim auctions just announced used cars fell 10% in value from the average. This is very unusual. That will trickle down to used retail cars soon.

Wow!

really? 10%. That surprises me. Time to google some research on that. Thanks.

 

[nerubi]

Agreed. I have a feeling next week will be 2-3x this week as far as unemployment claims. We will likely go to 50%+ unemployment.

That said, most likely the government will just bail everyone out at any cost and print their way out of this. It's interesting because normally that would be a huge issue -- but since nearly every country is experiencing the same issue, I don't think it will matter. Think of it as erasing fiscal history during this time. They're going to have to completely break the fundamentals of everything to come out of this.

The problem is that, it will all come too late and we will already have lost many of those businesses. Some will re-open and others will not.

Also no one is going back to work until we feel safe. That means public mask requirement + anti body testing + rapid infection testing. We are not a couple months away from this.

Just for reference the highest unemployment rate during the depression was 24.9% in 1933. Economists are saying for covid it could be 20% to 30% but too many unknowns at this time for them to know, a bigger second wave could push it. The rate jumped to 4.2% here so not bad everywhere.

 

[viper88]

Wow!

really? 10%. That surprises me. Time to google some research on that. Thanks.

I have friends who own dealerships. I use their subscriptions and read about automotive trends. Cox Automotive tracks and analyzes everything automotive.

Actually wholesale auction prices dropped 10% on average this month. That is a new record. There is a lag. The used retail market does not reflect that yet but it will trickle down. Bottom line, used cars are going to loose at least 10% in value very soon. Great time to buy if you don't have a trade.

As a comparison the worst drop in wholesale values prior to this month was back in the fall of 2008. Durning the last economic meltdown. Back ten the value dropped 10.5 over 2 months. It took 7 months to recover back then. Those prices did not return to normal for 7 months.

The 10% drop this month was over a single month. The drop was historic and has never happened before. The big question is how long before wholesale prices go back up this time?

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