Trade in Values tanking

[Sparty]

Have you seen Carvana's prices? They will never get rid of it unless they morph into something like Drive Time, a buy here pay here, repo lot.

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.

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[LuvHydro]

Carvana's offer is way down but is still offering a couple grand more than I paid for my ordered '22 Sport S (20K miles on it now) and KBB has it valued way more for both trade and PP.

 

[randeeezy]

You expect to get what you paid on a trade? You know the dealer is going to turn around and need to sell it at a profit, right?

Sell it on your own for market value

 

[LooselyHeldPlans]

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.

It took interest rates going up for that to happen. The fed is doing its job.

 

[LooselyHeldPlans]

The poor soul that purchased the '14 with 70k miles for $35k has to be wayyyy underwater right now.

Edit: I just checked. Assuming the new owner has put at least 10k more miles on it in the last 2 years, KBB says the Jeep is now only worth 20k. Wow.... 15k drop in 2 years. Man they have taken a bath....

This is the next bubble. Mark my words.

 

[dcmdon]

It's easier to justify a Hemi transplant when the truck isn't worth anything.

 

[Ratbert]

Just this weekend I traded in my 21 Prius Prime and 12 JKR towards my new 23 JLUR. I had shopped my trades at a few dealers and was shocked when they gave me what I paid for the Prius ($2k above new MSRP) and a few grand more than the other dealers for my JK.

Flip side is I had to eat about $3k in bogus dealer fees above MSRP on the new JLUR, but it had all the options I needed and saved me from struggling to sell to flaky Craigslist buyers...

I'm guessing that you weren't willing to do a custom order and "had" to pay over invoice.

 

[TX_Ovrlnd]

The market/economy will self-correct if allowed to without added influence.

 

[Ratbert]

You expect to get what you paid on a trade? You know the dealer is going to turn around and need to sell it at a profit, right?

Sell it on your own for market value

That's what everyone came to expect during the pandemic when it was incredibly difficult to find a new vehicle. Insurance gave me $8k more than I paid for my 2020 after putting 18k miles on it over a year and a half. They paid me $8k to drive it for a year and a half. That's insane.

Those days are gone, but some people haven't quite realized that yet.

 

[UtahDirt]

Book values put me at 48k trade for reference.

Dealers adjust trade offers in States where sales tax is reduced per the value of the trade. Presto the total is book value. Sell high buy high, buy low sell low, the house always wins.

 

[liquids]

The rule used to be 20% off the moment you drove off the lot. You're at 7 mos in and being offered 20% off. I'm not seeing an issue there.

 

[UtahDirt]

Just this weekend I traded in my 21 Prius Prime and 12 JKR towards my new 23 JLUR. I had shopped my trades at a few dealers and was shocked when they gave me what I paid for the Prius ($2k above new MSRP) and a few grand more than the other dealers for my JK.

Flip side is I had to eat about $3k in bogus dealer fees above MSRP on the new JLUR, but it had all the options I needed and saved me from struggling to sell to flaky Craigslist buyers...

Not all cars are soft new or used, try buying a Subaru or other very popular cars now.

 

[swavescatter]

I'm guessing that you weren't willing to do a custom order and "had" to pay over invoice.

I would much rather have done a custom order through Granger, but a new XR build is months off while my two trade-ins are plummeting in value. Also, I saved 4% on $50k (no tax on trade in amount) towards the inflated sale price of the dealer stock.

All in all, probably a wash but I get to have my new ride now and will probably end up throwing out all the XR parts anyway (except the wheels, gears and front axle)...

 

[MVOffroad]

The more options you have, the worse your resale will be.

True that. I just picked up a used 2021 fully loaded rubicon XR with low miles for 20k under original MSRP. A fully loaded car drops value real quick the first few years.

 

[Tethmes]

A large reason I pulled the trigger on my wrangler order when I did was to take advantage of the stupid state of the used car industry. Almost a year ago when I ordered the dealer offered me the full original MSRP of my 5 year old ford focus on trade in. (They turned around and sold it for 3k above what it was originally worth brand new) It was impossible to say no knowing that sooner or later if I waited I'd be sitting on a largely valueless hunk of metal with a shit transmission.

Sure enough, if I tried to trade it in today I would be offered around 50% of what I got for it a year ago. In normal times, that would have been acceptable. But the last 2 years were not normal and I'm not stupid enough to pass on a deal like that when it presents itself. The focus was simply a necessity when I bought it. Needed cheap commuter transportation. But I will always look back fondly on it for two reasons. 1.) It was my first brand new car, and 2.) I basically got to drive it for 5 years for free.

Anyway, I got way off topic. Point of the whole thing was to say that if anyone thinks they're buying a car/truck/minivan/jeep/anything else with 4 wheels as an investment, that ship sailed a while ago and it was only in port for a quick fuel stop... and probably some beer.

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