Trade in Values tanking

[CT_LFC]

That's exactly what I'm talking about. They'll go under, their inventory is going to get sold ASAP at a low price. That's going to deflate the used car market substantially.

Carvana's biggest problem is that poorly timed acquisition just before used car prices started to correct. The debt payments alongside falling prices will make it difficult for them to survive.

Their stock was $4.55 last week and i thought about throwing some money at it but didn't and now it's at $7.30. Ugh.

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[JSFoster75]

Sell it. You never want to give a dealership more tools to work with in a transaction anyway.

In some states, you only pay taxes on the difference, here in TN trading a $45k vehicle will save you nearly $4,000 in taxes...

 

[Chupacabra]

In some states, you only pay taxes on the difference, here in TN trading a $45k vehicle will save you nearly $4,000 in taxes...

It's that way in Colorado too.

 

[Hennessey17]

Honestly I'm surprised it took this long for things to start to return to normal. When it's cheaper to custom order than it is to buy a <3-5yr old used vehicle, you know things are bananas.

When I placed my order and agreed to the price on my Sport ('21, $36K), there was a dealer I was talking to. They had a '20 Willys with 20k miles that would have stickered for $39k if I had ordered the same vehicle brand new as a '21... they were asking $44k... I emailed the salesperson and mentioned that you could get a brand new one for $5k less than the used one. He was very honest. They knew some people wouldn't want to wait several months, so they marked it up and ended up getting it... from a guy who didn't want to wait.

 

[Shibadog]

Due to just needing a larger vehicle, I've been researching replacements for my 22 Wranger Rubicon XR. Stickered for 62k and I bought it for 58k last year.

I was offered 46k for trade from the same dealership I purchased from. That's painful depreciation for 7 month old vehicle.

The days of high used car values seem to definitely be over.

Call some of the better known large National dealers (like Gupton’s) and see what they can do for you. As has been noted, car prices are starting to return to reality. Back when new cars were $4-5k the old story was it cost you $1,000 if you drove it around the block.

 

[Whec716]

I ordered my Jeep in Mid December and pulled a vroom quote on my trade in at the time, - $27500, did it again today 23997

 

[191185]

I sold my 4xe to Carvana in early September (from a July quote). Just checked their website, and they have a sale pending on it - for LESS than what they gave me. Four months of carrying costs too.

So far, my XR was been perfect (except for the 17mpg that I average, but hey 3.6 torque is nice!) in 10,000 plus miles.

I was on the fence between a 4xe and XR. I went with the XR. Can I ask why you switched? Or what you didn't like about the 4xe, just curious ?

 

[chicknwaffles]

Sell it. You never want to give a dealership more tools to work with in a transaction anyway.

Or you can be smart and understand that trading in a vehicle is two separate transactions.

Trading them yours for x amount

then buying theirs. for x amount

oh yeah, then avoiding all the bs fees they try to put on (sometimes).

If you know how to navigate that minefield. And it really is not that hard. You are good to go.

But yes, if you are stupid they will screw you 8 different ways.

 

[2manyhobbies]

I was on the fence between a 4xe and XR. I went with the XR. Can I ask why you switched? Or what you didn't like about the 4xe, just curious ?

Unsatisfactory service experiences and overall vehicle reliability.

 

[john adams]

I was on the fence between a 4xe and XR. I went with the XR. Can I ask why you switched? Or what you didn't like about the 4xe, just curious ?

i got the diesel when debating between it and the 4xe (originally ordered the 4xe then pulled out). Reliability, highway shutdowns, long service times, crap highway mileage.

A hybrid Wrangler would have been better. An EV wrangler too. This thing is kind of messy but it gives a really fun test drive!

 

[sentience]

Currently an industry wide problem. If anyone wants to see what happening in depth, the following is a great "insider baseball" piece:

 

[commbubba19]

If used car prices are going to fall and trade in values tanked. Then new car pricing needs to be more negotiable. Seems like dealers are wanting cake and eat it right now. Low ball the trade but sell new at MSRP or higher still claiming inventory woes.

 

[LuvHydro]

Dealers made record profits during this COVID shitshow. Many are going to be VERY slow to revert back to normal operations.

When you get used to not negotiating and making an additional 5K ADM per unit, the prospect of coming back close to invoice is not appealing to them.

I don't know what's gonna happen in the industry moving forward. There are people willingly signing up for 700, 800, 900 and even, gulp, $1000 car payments. That is just f'n stupid.

 

[chicknwaffles]

All goes back to if you pay or have paid an ADM. Any ADM, no matter how small.


hahahahhahaha good luck


They talk about people paying 30k ADM on a rav 4.

The dealers asking it are the start of the issue.

The fools paying it are the rest.

 

[Pig-Pen]

My newphew works at Carmax. He said they have been letting people go and cutting hours like crazy. Car sales have been super slow.

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