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Falling trade in values?

Amaruq

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Question. If a sold-order invoice sheet has a trade value on it, how hard is that number come June? That’s now my biggest concern and my only leverage will be the fact that they don’t want my unsalable unicorn to sit on the lot when it arrives.
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txj2go

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I would be interested in where that was. I'm looking at dealers in Oklahoma and N. Texas and not finding anything like that. More like about $3k off of MSRP and that's it.
 

txj2go

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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.
I herd this from a youtube talking head. Of course dealers don't want to give anything away, they are used to the gravy train of unsuspecting customers. They are buying used at low prices to water down the value of what they have in inventory already so theoretically they aren't losing money. Then they stay with high sales prices and force buyers, what few buyers there may be, to pay them. I've been watching for the past few months and advertised prices have not changed. Show up at the dealer willing to buy and anything might happen but I'll bet you would have to try multiple dealers before you found someone really willing to deal.
 

viper88

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I herd this from a youtube talking head. Of course dealers don't want to give anything away, they are used to the gravy train of unsuspecting customers. They are buying used at low prices to water down the value of what they have in inventory already so theoretically they aren't losing money. Then they stay with high sales prices and force buyers, what few buyers there may be, to pay them. I've been watching for the past few months and advertised prices have not changed. Show up at the dealer willing to buy and anything might happen but I'll bet you would have to try multiple dealers before you found someone really willing to deal.
Cars depreciate. Used cars are not like equities where some one might average down and buy more when prices drop. There is huge holding cost. They loose money on inventory every day unsold cars sit on the lot. A exception might be if a used car manager views the drop in value as a short term glitch. The last time this happened it was not nearly as severe. Even then it took 7 months to rebound.

It's probably regional and very dependent on dealer and cash flow. The huge wholesale drop was nationally. It's supply and demand. LOW auction prices are because no one is buying. Or dealers are dumping their inventory for cash flow. Here in Chicago I know of a couple of dealers who are dumping used car inventory. Started last week after the Cox report.
 
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four low

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How do they " dump used car inventory " if no one is buying ? Guess that grass lot fire in Florida a few weeks ago, that took out 3500 ( thirty five hundred) Rentals was a blessing in disguise.
 

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viper88

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How do they " dump used car inventory " if no one is buying ? Guess that grass lot fire in Florida a few weeks ago, that took out 3500 ( thirty five hundred) Rentals was a blessing in disguise.
They auction them off for whatever they get and thats the "current" wholesale market price. Fewer buyers so less bidders = lower wholesale prices.
 
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txj2go

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Cars depreciate. Used cars are not like equities where some one might average down and buy more when prices drop.
Who knows what is in the minds of dealers, but I've been watching JKU, JLU and WK2 prices for the past 5 months and they aren't going down along with the wholesale market. I don't know if people are buying Camrys but JKU/JLU/WK2 are selling very slowly. The listings that I see tend to stay month after month.
 

Ohio Hiker

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Cox just dropped a WARN notification that they are furloughing 80 workers at a Cincinnati auction facility. The car sales decline has been very significant and I assume it surely will affect resell values for at least the next 3 quarters.
 

Dkretden

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Cox just dropped a WARN notification that they are furloughing 80 workers at a Cincinnati auction facility. The car sales decline has been very significant and I assume it surely will affect resell values for at least the next 3 quarters.
ouch.

this country needs to get back to work fast. If we don’t, it’s 1933.
 

four low

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Since China holds Trillions of US debt, we should charge off the economic costs against that. Zero debt. Can't begin to figure cost of human lives... Every country in debt to China needs to cancel interest payments now..
 

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Since China holds Trillions of US debt, we should charge off the economic costs against that. Zero debt. Can't begin to figure cost of human lives... Every country in debt to China needs to cancel interest payments now..
As of Jan 2020, China held $1.1trillion. They are 2nd to Japan at $1.27trillion. Foreign holders of US debt total a little less than $6Trillion

The biggest part of US debt is inter-govermental lending. That’s basically IOUs to Social Security and it makes up 26% of the entire national debt.

https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124

The reason foreign countries, and many others, but US debt is because we pay our bills. We have the best history of doing so. The moment we stop doing that, our economy will collapse, No one else will buy US bonds in the fear we won’t make payments.

What you should truly fear is that at some point the US Government will do one of two things to get out from under this debt. They’ll either start printing more money which will greatly increase inflation or they‘ll cut WAY back on Social Security benefits to people that paid into the fund.
 

plex

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Since China holds Trillions of US debt, we should charge off the economic costs against that. Zero debt. Can't begin to figure cost of human lives... Every country in debt to China needs to cancel interest payments now..
Yeah, if we don't pay, who dare to collect debt on the biggest military on earth, amirite?

Or better yet, let CIA do some work out of Japan and we can cancel our debt to them too, since Japan actually holds more US bonds than China. Bang, problem solved!
 

plex

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What you should truly fear is that at some point the US Government will do one of two things to get out from under this debt. They’ll either start printing more money which will greatly increase inflation or they‘ll cut WAY back on Social Security benefits to people that paid into the fund.
This is literally happening right now right this moment with the HEROES act passed in the house, brace yourself baby. We have less tax coming in, and yet we can give out more, that money has to come from somewhere, right?
 

Sgt Beavis

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This is literally happening right now right this moment with the HEROES act passed in the house, brace yourself baby. We have less tax coming in, and yet we can give out more, that money has to come from somewhere, right?
Agreed, but the HEROES act isn’t getting past the Senate without massive changes.
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