Trade Values Crashing?

[m3reno]

I paid 41,500 for my 22 Altitude that's with 6% below invoice. Was just testing to see where the used market was and was offered 47,000 two weeks ago. Would be curious to see the difference as of today.

Sponsored

 

[jmj8355]

I paid 41,500 for my 22 Altitude that's with 6% below invoice. Was just testing to see where the used market was and was offered 47,000 two weeks ago. Would be curious to see the difference as of today.

Where did you get that nice offer at?

 

[Heimkehr]

What was the saying? 'A recession is when your neighbor is out of work. A depression is when you are out of work.'

During a recession, you have to tighten your belt.
During a depression, you don't have a belt to tighten.

 

[Steph1]

Housing market is going through the same thing. No more bidding wars and at least 10% less than last spring.

 

[ViperJon]

My brother in law traded his ‘21 4xe a few weeks ago. He paid $64k out the door in Sept ‘21 and got $62.5k for it. YMMV, but hybrids in many areas hold their value above traditional ICE models.

Try that again in a year or two when better batteries with longer range and components are out. It's an Iphone 8.

 

[2manyhobbies]

my 4XE was a bit under $52k plus tax, etc. carvana gave me $53k a couple of months ago. I was getting quotes weekly from them, Vroom, and Driveway. The highest offer was north of $56k back in may. But I had to wait for my new Jeep to arrive, or give some of the value back to a car rental company. My 4XE has sat at Carvana now for almost 4 weeks with a $57k asking price.

I believe a lot of people buy cars based on emotion. And the “payment” they can afford. And they don’t think about total cost of ownership. I haven’t looked to see how many 4XE wranglers are sitting on lots, which should influence how much the used ones sell for.

Tennessee has pretty high sales tax because we don’t have state income tax. I considered trading in my 4XE, but the dealer clearly understood the dynamics of the rebate and that he sold it to me for 6% under invoice last year. The sales tax savings of trading it in would nor even come close to matching what Carvana paid. Kudos to the guy that keeps flipping 392s. Maybe there is no sales tax in his equation.

 

[roaniecowpony]

Housing market is going through the same thing. No more bidding wars and at least 10% less than last spring.

I hope it's an indication that inflation is subsiding even if my Jeep is not going to be worth as much. I was thinking I'd have to start buying USDA Choice instead of Prime. ? If I had to go from bottle wine to box wine, I'm not sure I could handle it.

 

[[DELETED USER 82058]]

Yeah I noticed it. I paid $61K for my 2 Door Rubicon, now with 940 miles, Carvana offered $43,113.

 

[Steph1]

I hope it's an indication that inflation is subsiding even if my Jeep is not going to be worth as much. I was thinking I'd have to start buying USDA Choice instead of Prime. ? If I had to go from bottle wine to box wine, I'm not sure I could handle it.

Everything is relative however, you get less for what you are selling, but in turn, you pay less for what you are buying.

 

[Garemlin]

Housing market is going through the same thing. No more bidding wars and at least 10% less than last spring.

Skyrocketing interest rates are at play there. We have been trying to buy a new house for over a year. What we were pre-qualified for was nothing we wanted. Now the ones we like are within our price but not our comfortable mortgage payment range. Just can't win.

 

[LuvHydro]

In December I sold my 2 month old Wrangler to Carvana for ~$6,000 more than I paid for it.

Yesterday I checked Carvana on my 5 month old Wrangler. They are offering ~$6,000 less than I paid for it.

So yes, things have changed in 9 months.

Someone mentioned their retirement account, I have a long time to go and mine is in moderate-high risk, but it's down 25% since, well you know when.

 

[Stetson]

Trade in and used car values have been unusually and historically high for the past year or so. I sold my JLUR this past January to carmax for $1,500 less than I paid for it. It was a 2018 with 40k miles. Totally absurd price for that Jeep, but I took the money and ran!

i think it’s unsustainable for the high used car prices to last forever. There are many, many people who cannot afford a new or used vehicle right now.

i think between the interest rates going up, manufacturers being able to start to build and ship more vehicles and in general demand going down, trade in values will also go down.

just my 2 cents….

Stetson

 

[RAMSTEEL]

I'm actually surprised we're not knee-deep in a recession. This is some pain but as much money that was given out since 2020 (party agnostic, they both pushed a ton of free money into the economy) and our global dependency on chips...supply, demand, near/real-time supply chain, tons of early retirements, mom's/spouses staying home, etc. etc. - 2007/2008 we hit the same thing and it took about two years to roll the rates down. It could be a lot worse, A LOT WORSE.

NOW there are a lot of folks with inflated house prices, huge ADMs on new vehicles, and folks with less buying power who are slowing their roll (Interest rates). Supply will stabilize pretty quickly and we'll be back to below MSRP as a normal thing. Gas is $2.59 in Texas $2.79 in Virginia and $3.05 where I fill up at Costco. Amazing how supply/demand works.

The best thing we did was refi to a super low rate, not take any money out to inflate our mortgage and we're fortunate, less one vehicle, to have traded or sold them at the peak. I'm on the bubble to take delivery of my 392 that's due in soon. No one was saying that a year ago I'm used to super low rates so getting back to "normal" is not fun. Trade values have to go down to make used cars affordable at the current rate.

 

[Stetson]

I'm actually surprised we're not knee-deep in a recession. This is some pain but as much money that was given out since 2020 (party agnostic, they both pushed a ton of free money into the economy) and our global dependency on chips...supply, demand, near/real-time supply chain, tons of early retirements, mom's/spouses staying home, etc. etc. - 2007/2008 we hit the same thing and it took about two years to roll the rates down. It could be a lot worse, A LOT WORSE.

NOW there are a lot of folks with inflated house prices, huge ADMs on new vehicles, and folks with less buying power who are slowing their roll (Interest rates). Supply will stabilize pretty quickly and we'll be back to below MSRP as a normal thing. Gas is $2.59 in Texas $2.79 in Virginia and $3.05 where I fill up at Costco. Amazing how supply/demand works.

The best thing we did was refi to a super low rate, not take any money out to inflate our mortgage and we're fortunate, less one vehicle, to have traded or sold them at the peak. I'm on the bubble to take delivery of my 392 that's due in soon. No one was saying that a year ago I'm used to super low rates so getting back to "normal" is not fun. Trade values have to go down to make used cars affordable at the current rate.

we are in a recession…it’s just not been acknowledged yet…or understood yet

there are enough people who have stable incomes and stable situations that they are going about their business…but I think over the next few months we are going to see the wheels fall off the wagon…so to speak

 

[AZJeepGuy]

Oh im not looking for the crazy inflated values that were happening last year but North of 11k depreciation on a 6 month old low mileage wrangler is not a normal thing in my experience. Maybe other cars but not Wranglers.

They may have realized they were paying too much over the past few months and are [ulling back a bit. Or the demographic they serve most isn't that interested in Wranglers. Inventory is growing quickly both new and used because of interest rates as well.

Sponsored