We are already in recession which might last all the way to 2024. This type of period usually offers good opportunity to buy houses, stocks but not cars.
-
Add Yours: VW ID. Buzz Owner's Registry
Used Car Prices crashing soon? Recession deepening
I think it is beginning. My used Hyundai Accent car quote on Carvana just dropped $4k in 2 months. I was quoted over $11k for it 2 months ago… $6440 today. Mileage only went up 200 miles.
I think we will start seeing a major drop in used car prices followed by more incentives for new cars shortly after. Homes sales are down, stocks are down, interest rates doubled in 3 months.
those market adjustments should be ending soon. Sucks to have lost the $7500 credit and now $4k in my trade in waiting on my 2022 VW.
I think we will start seeing a major drop in used car prices followed by more incentives for new cars shortly after. Homes sales are down, stocks are down, interest rates doubled in 3 months.
those market adjustments should be ending soon. Sucks to have lost the $7500 credit and now $4k in my trade in waiting on my 2022 VW.
1 - 20 of 30 Posts
I'm no economist, but I honestly don't know how after the insanely out-of-whack used car values we've been seeing, anybody can view a correction towards normal valuations anything other than a relief. Carvana is a terrible example. They have never been profitable. Money has been cheap, and now it's not. Carvana and CarMax are going to take heavy losses on quickly depreciating inventory. This winter ought to be a good time for a used car buyer to finally get something decent for a "normal" price as pent up used inventory floods the market.
Yeah, I just wish I could have unloaded my used car 2 months ago when the getting was good. But needed my ID.4 to arrive first. I knew that price was too good to last long.I'm no economist, but I honestly don't know how after the insanely out-of-whack used car values we've been seeing, anybody can view a correction towards normal valuations anything other than a relief. Carvana is a terrible example. They have never been profitable. Money has been cheap, and now it's not. Carvana and CarMax are going to take heavy losses on quickly depreciating inventory. This winter ought to be a good time for a used car buyer to finally get something decent for a "normal" price as pent up used inventory floods the market.
Carvana was offering me $20k for a 10 year old, 65,000 mile Ford Flex at the start of summer. Tempting, but really I was thinking "you guys are frigging HIGH." Sure enough, today it's down around $12k.
Whelp. I guess the tax credit is uncertain and trade in value on my current car has tanked then there is no way I can take delivery of my locked 23 in Q1.
I feel sorry for the folks that paid exorbitant prices for used cars a couple of months ago and now took a big hit on the value of those cars. I imagine some banks will become the new owners of those cars soon!
Anyone who didn't see this coming .... well, I'll stop there.
I feel sorry for the folks that paid exorbitant prices for used cars a couple of months ago and now took a big hit on the value of those cars. I imagine some banks will become the new owners of those cars soon!
Hurricane Ian destroyed a lot of cars in southwest Florida. I expect that in the SE USA, used car prices will for the next few months not drop much. We are also in an inflationary period. This should help keep the used car dollar amount price up. Adjusted for inflation, used car prices will have fallen. The Inflation Reduction Act will also influence some used car prices.
The destroyed cars are just a small fraction of the total market. A much bigger factor is the repossessed cars that go to auction and come back on the market. I hear the repo guys are already having a field day.Hurricane Ian destroyed a lot of cars in southwest Florida. I expect that in the SE USA, used car prices will for the next few months not drop much.
Related: one must be very careful not to take delivery of a pre-owned that just may be an out of state auction flood victim! It happens. Inspect closely.
Hurricane Ian destroyed a lot of cars in southwest Florida. I expect that in the SE USA, used car prices will for the next few months not drop much. We are also in an inflationary period. This should help keep the used car dollar amount price up. Adjusted for inflation, used car prices will have fallen. The Inflation Reduction Act will also influence some used car prices.
NerdWallet has a story on the car market and hurricane Ian. Why It Will Be Hard to Replace Cars Destroyed by Hurricane Ian - NerdWallet
Some quotes from the NerdWallet story:
""We’re anticipating more than 300,000 destroyed vehicles from Hurricane Ian,” says Mark Friedlander, Florida-based director of corporate communications for the Insurance Information Institute, citing early damage reports from Florida, North Carolina and South Carolina."
"Friedlander says based on estimates, Ian could be the second-largest vehicle loss event on record in the U.S."
"In September, it appeared that vehicle inventories were stabilizing. Cox Automotive, an automotive marketplace and data company, reported that used-car supply was returning to normal and used-car prices were starting to drop."
Some quotes from the NerdWallet story:
""We’re anticipating more than 300,000 destroyed vehicles from Hurricane Ian,” says Mark Friedlander, Florida-based director of corporate communications for the Insurance Information Institute, citing early damage reports from Florida, North Carolina and South Carolina."
"Friedlander says based on estimates, Ian could be the second-largest vehicle loss event on record in the U.S."
"In September, it appeared that vehicle inventories were stabilizing. Cox Automotive, an automotive marketplace and data company, reported that used-car supply was returning to normal and used-car prices were starting to drop."
I don't think 300,000 out of the 270 million registered vehicles in the US is enough to affect the market much. There could be some local shortages which will be quickly filled.We’re anticipating more than 300,000 destroyed vehicles from Hurricane Ian,
We just sold our 2015 Toyota Highlander to VROOM. In March they offered $4,000 more than they offered this month. Only a hundred miles difference. Now we have one car while waiting for our 2023 ID.4.
According to Cox Automotive, there are about 3 million used car sales in the USA per month. 300,000 would represent 10% of that number. Spread over 4 months, that would represent a 2.5% increase in demand to replace those 300,000 vehicles over the entire USA. The effect will last for only a few months, but I do expect used car prices to not fall in the SE USA until early spring 2023.I don't think 300,000 out of the 270 million registered vehicles in the US is enough to affect the market much. There could be some local shortages which will be quickly filled.
Used car prices shouldn't crash but they will continue to come down inverse to increases in new car day's supply. While it would be rightly concerning if you've purchased a late model trade in the last year or so, the only worry is if you didn't have a decent trade. Like the housing market, once you're in, you only pay the spread.
I suppose because of a lack of availability, the ID4's value seems to still be holding up well. KBB.org shows my FE with 11K miles trade-in value is $46K. I paid MSRP and with the $11K federal, state and local incentives, I'm still ahead of the game. Hope resale value will remain strong until 2025 when I plan to replace it.
It is going to happen.I think it is beginning. My used Hyundai Accent car quote on Carvana just dropped $4k in 2 months. I was quoted over $11k for it 2 months ago… $6440 today. Mileage only went up 200 miles.
I think we will start seeing a major drop in used car prices followed by more incentives for new cars shortly after. Homes sales are down, stocks are down, interest rates doubled in 3 months.
those market adjustments should be ending soon. Sucks to have lost the $7500 credit and now $4k in my trade in waiting on my 2022 VW.
For last 1 week on out local radio they are advertising about QX60. Some dealer has a few sitting on his lot and asking to come and drive off in one without any wait.
It had to happen and makes total sense for used car prices to come down again. I just hope that I will still get enough for our trade in to still afford the ID.4.
there's definitely something happening. you can get a used model 3 on tesla's website for 37000 or 35000 (previously repaired). They were charging more than for the new ones in the last 2 months for 2-3 year old cars because of scarcity and adding FSD.
1 - 20 of 30 Posts
Volkswagen ID Forum
VWIDTalk.com is a forum community dedicated to Volkswagen ID owners and enthusiasts. Come join the discussion about Volkswagen ID. 4 and ID.3 Vehicles and more!
Full Forum Listing
Recommended Communities
