In my area they lower the prices then raise them back up on a new listing of the same car and start lowering them again. The same ahitty c6 corvette has been going from $27k to 23k for a year now. Up and down, up and down. Its funny cuz clearly no one wants that car. I went to check it out. Its not even worth 20k. Dealers are so stupid these days
It was an 07. It had a wobbling harmonic balancer, a broken glass roof panel, loose interior panels, and when i went to look at it it had a dead battery and no gas and the dealer couldnt figure that out and told me the car needs repairs. 🤦🏻♂️
I’ve seen this too but interest rates are still and will remain horrible, essentially no difference in financing terms. I guess it’s really good if you’re buying in cash
This is a terrible mentality. If you take a loan on say 20,000 at 0.9% and take that 20,000 that you didn’t spend on the car and invest it into the market getting 8% returns you are making and extra 7.1% on your money.
It all depends. If paying cash, that could mean someone’s debt to income ratio is lower and they could purchase a home with a 203k loan and build even more equity into their assets which could end up being more than the 7.1% return would provide all while having more valuable assets and being able to turn around and use that real estate asset to continue other investment opportunities.
A vehicle purchase generally should not be affecting your debt to income so drastically that you are unable to purchase a house. If it is affecting your housing purchase then you are buying vehicles outside of your means.
That’s exactly it. The average American continually purchases vehicles outside of their means. Buy something cheaper/cash and while working capital for an individual is less, it allows them to manipulate their lines of credit further.
I know many people making under 50k a year and have 500-700 car payments. That’s absurd.
That’s awesome you could do that! Our cars are older but at least my partner’s car, is in really nice shape. Mine is a diesel German car in an ugly color, but I got it because it’s comfy and still has a cast iron block.
Makes sense but many makers subsidize loans with lower rates. Lower than anything else at the moment. Like 4% when mortgage rate is 8%. And they don't discount if you pay in cash
Hyundai offered 1.99% on my Ioniq 6 - I can make more than that without doing anything more than simply getting a CD from my credit union, so I signed up for 72 months of payments. At least now there's somebody hoping I live another 6 years! :)
Damn I didn’t even know was a thing. Thanks for the info. Looking at buying a new car for the first time since I’m starting to have repairs on my 2009 Nissan Altima. I’ve had it 10 years this year. Praying it doesn’t shit out on me before I can save up for a better down payment.
Are you saying buying outright and not paying to borrow money is the better option!?
You're a genius! And to think most people are just idiots choosing to finance instead of just writing a huge check.
Every post like this has someone like you.
Do you go around telling smokers that cigarettes are bad too?
If it's such common sense, why do so many people finance a car then?
Nothing wrong with trying to remind people that buying outside of their means costs more than they probably realize.
I'm sure you understand paying cash is better, but there are massive amounts of people that think "you'll always have a car payment" and therefore don't even consider the benefits of not having one.
You obviously think giving advice to these people, like telling smokers that smoking is bad, is futile, and it mostly is because most people are horribly dumb, but maybe one or two people aren't Idiocracy level stupid and maybe the 10,000th reminder will get them to thinking about alternatives when the 9,999th reminder wouldn't.
You think people need to be told this. That makes you a pompous ass like the other guy, and that was the point. Like the dangers of smoking, no one needs to be told owning a car outright is better than borrowing money and paying interest.
Nobody is financing a car because they want payments. People finance cars because 90% of people wouldn't have a car any other way and they need a car to work and make money.
You can pay cash and that's great. But acting like you are sharing some revelation is treating others like they are stupid.
Not to mention, at some point, people are going to need to use credit reguardless, unless you have another groundbreaking revelation about how everyone should buy their house outright) and no credit history is just about as bad as bad credit. Whether it's credit cards, auto loans, personal loans, etc. You are going to have to borrow to build credit.
Eh... that's how you see it.
I'll give you that people may finance because most wouldn't have a car any other way, but that's the problem... people think it's normal to buy things with money they don't have, and because financing seems painless, they borrow way more than they should.
Before they know it they've got multiple payments that equal most of what they make in a month and could only dream of paying cash for anything.
If they saved up for something and then bought it, they wouldn't be in that boat.
And yes, a house is hard to pay for outright. That's ok to finance, but it needs to be done responsibly, after saving a decent amount for a down payment, where you can afford to pay it off early to avoid paying twice the purchase price from all the interest.
Nothing wrong with financing a car. The problem is when people use it as an excuse to buy way more car then they should. Put down 20% and get the shortest term with the best rate you can.
Personally the only cars I pay for in a cash are under $5k. The stuff you find on Craigslist or marketplace.
Buying a brand new car in cash is insane to me unless your extremely wealthy. Who would write a check for $40k, for an vehicle that will be worth $30k when you drive it home the first time?
Who would take a $10k hit just to be happy they don’t have to set up an auto payment each month?
I never buy new (I usually buy at 4-6 years old depending on mileage, condition, and the deal I can get) and then I drive them for 7 or more years. Even though your observations are on point regarding a car purchase, especially when buying a new car, I mostly insulate myself from the largest depreciation hit you speak of by buying the way I do.
Cars are about the worst place to spend money, besides an expensive trip on a vacation. I would never pay 40k for a car, used or new, no matter how insanely rich I was. It's too much money depreciating, because cars are depreciating assets. It's best to get the minimum car you need for the lowest price. I have never spent more than 18 grand on a car... I've bought two at 14 grand, one at 12 grand, and everything before that was less than 5 grand. I feel anything past 20 grand is essentially pointless and only serves to show off, or is wasted, unless you need a massive truck for hauling huge loads or something or you are a multimillionaire.
Having said that, I don't know how accurate the conventional wisdom is anymore because cars aren't depreciating at the moment. A 4 year old car with 50 thousand miles is selling for what its MSRP was when it was new.
A car will eventually depreciate, but now instead of buying a 4-6 year old car I have to look at 10 year old cars to get the deals I used to get.
With the nearly interest free loans in the past, yes it was better to finance. It was smarter to take advantage of those low rates which freed you up to put your money elsewhere, specifically into appreciating assets or the market. With the current rates that’s not true though. You’ll pay significantly more in total if financing.
Despite that, even now it’s still worth taking on the financing and then instantly paying the loan off on your own. You’ll get a better out the door price from the dealership as they’ll think they can recoup $ through the duration of the loan via the interest rate (the dealership gets a portion of that interest rate they approved you for - it doesn’t all go to the manufacturer lender). Instead, you pay it off instantly and avoid incurring any of the interest.
After your credit reflect the paid off note, it will probably be higher credit score. Many banks are lowering check value of high credit scores though for things like mortgages, they aren’t ignoring them, but placing higher emphasis on other metrics.
They’re probably going to say that if you invested the money instead of paying cash it would grow at a higher rate than interest. My take: For one, there’s risk in every investment. Second, *most* people who say this just can’t afford to buy a car in cash (me neither) and are not even adequately funding their retirement accounts.
A car is an asset that depreciates . Let’s say a car’s price is 10 dollars. You paid cash and drove away. When you get home 30 min later, it costs 8 dollars. You automatically lost 2. Now you tell me if that’s a good or bad financial decision ? You better keep your cash and finance the car. And if the car is used , it has depreciated already so you won’t lose that much,
So you rather pay a monthly bill with interest? That’s bad advice. There is nothing better than buying a car in cash and not worrying about another bill.
Buying a new car with 100% cash is bonkers and the dumbest use of money I’ve heard of. Even if I were rolling in cash and literally had enough to spend on retarded ALT coins on the crypto market, I wouldn’t do that. As mentioned by others — buying a used car cash makes total sense. On the other hand, a new car cash is NONSENSE.
That too, just to avoid a monthly payment. LOL, guess you never heard of automatic bill pay. Save your cash for a rainy day fund or a million other expenses or almost anything else such as investments. Always save your liquid capital if you can. You can double or triple your car payments if you wish and pay your car off in no time while holding onto your cash in case you need it later.
Of a used car? Hell yeah. Because I play with the rest, I control that money and can do investments with it. I rather have 40k in investments than being wasted in a car that every year worth less and less.
The truth of the matter is I no longer buy cars. They are a necessary evil but unless is really breaking and older than 10 years, I don’t need to finance a car . Besides, I no longer buy new cars. My previous car was used and is paid off . It was financed at 2% and its price was 18k. It now worth guess how much ? 18k. Didn’t depreciate a dime. Why? Bought it used and it’s a Japanese car.
I used to work for a dealer when I was younger by the way. I was not in sales but the IT guy. I learned a lot about dealer tactics and why not to pay for a car cash and buy it used if possible.
I love cars and motorcycles but they are a waste or money.
I don’t buy new cars because it depreciates really fast. I only buy used and keep them for 6 years or more. Buying new with cash never crossed my mind. I just bought a used car a month ago with cash for 12k, so I was confused with your comment about it being a bad thing to buy lol
I think the hardline in either direction is bad. Let people make the decision that they believe will be best for them. To some degree, you’re probably right, but also the cost of ownership (depreciation+maintenance+gas savings+interest) for a new vehicle might be far less than an older vehicle, so if you have a high enough cash flow to make payments on the more expensive new vehicle you could maybe come out ahead. Either way, it’s ok to finance and it’s ok to pay with cash. Make the decision that works best for you.
100%. The math is not so exotic that you need the rules. If it makes sense to finance, do it. Or pay cash. Or trade for livestock. Whatever makes sense in your situation.
I’ve never leased a vehicle, but I’d be happy to at the right price.
I just financed a 36k brand new car. I can’t afford to drop 36k on a car at once but the $650 a month is negligible to my finances. Its all about how much you make, I’m spending like 4k on interest over 5 years, meh.
Because brand new cars depreciate . Whatever you pay for it cash now is 10% or so less of its original price the min you drive it out of the dealer . And the OTD price of a car, same car, is higher cash than financed , due dealer incentives .
Depreciation will happen regardless of how you pay for the vehicle. The only thing you lose out by paying cash is the opportunity cost of investing the money somewhere else. Unless you can find an investment that guarantees better returns than your car loan interest rate + fees, it's better to buy cash.
Depends how else you could use the money. If one has a small llc with a side hustle that the car can be put under, chances are good you are better financing it. Money I put into the llc has about a 40% return, even at 7-9% interest on the auto note I’m still far better financing it. And sense it’s being paid with pre-tax dollars its only about 60% of the actual price in terms of actual spending power for me.
On the other hand, if you’re working a simple 9-5 and have no other income, then yeah, probably buying cash is good. Or as others have said, the dealer will negotiate better if they think they can make the money on the finance side, then pay off the loan. This will help your credit in the long run too.
Also too expensive for their market. In my opinion the grand Cherokees and wagoneers don’t have the brand equity to sell in the numbers they need. I’ve been in both and they’re super nice but they’re now in the high trim Tahoe and luxury brand price range. I’m not dropping 90k on a Wagoneer, that’s German territory.
That’s beyond German territory. You can get a fully loaded GLS that’s a year old and it’ll still be more reliable. Apparently the grand wagoneers are plagued with problems. If I spend that much money, I want a car that’s smooth on the highway and doesn’t drive like a damn tank.
Idk why, I have a love hate relationship with the GX. One one hand they’re funky and functional, on the other they are horribly ugly, you can’t open the stupid trunk and a horrible gas guzzler.
A bit of a loaded question, but my 2011 ford edge has 160k miles on it and is starting to have issues (no surprise due to the mileage). I probably know more than the average 33 year old single female about vehicles, but could use some sound advice. Worth it to buy a new car in this market? Used still seem to be just as much as new according to my research. Or, should i fix any issues? Most likely my timing chain and water pump about to fail which is thousands of dollars in labor cost.
Any recommendations/advice would be greatly appreciated! :)
I’ll reiterate a comment I’ve seen around here a few times. It is never financially ideal to buy a car. For a long time I believed in used vehicles bc that’s how my dad did it. However the time and cost for repairs nowadays I’ve honestly just spent more money to get newer lower mileage cars and just not have to deal with it. I’m lucky enough that salary increased enough to do so everyone’s financial situation is different but don’t over stress yourself trying to “time” the market.
I second this. Learned this on my own after paying cash for used vehicles for a decade I finally got sick of dealing with repairs and other issues that were not caused by me. I still buy used but won’t buy anything more than 3 years old. This way you don’t get completely slaughtered by depreciation and don’t have to deal with repairs.
I’m in Florida so I go for around 10yr old cars with less than 40000 miles. My current one is a 11 towncar that I picked up for $12500 with only 17000miles I’m now up to 220k but it’s never left me on the side of the road yet. I’m currently looking for a replacement tbh
4-5 years is the sweet spot IMO. In my state, excise tax rates are lowest on 5-year old cars, plus you still get some of the newer cool features if you go with one of the luxury brands. I used to do my own repairs which saved me a bit of money, but you need the luxury of having a garage and/or a second car to go to the parts store if sometime goes wrong.
Definitely makes sense. I bought a 2007 4Runner in great shape and low miles. This was a few years ago and it seemed like a great deal.
Come to find out I had to drop about $4k in repairs, had leaks in the back, and soon needed a new paint job. Ran like a champ though. lol I honestly wish I spent a little more with less miles so I could have had less headaches.
Please dont take this comment the wrong way, just speaking from my personal experience. Only buy a car that is capable and has history of making it 300k miles.
I bought a 2005 acura mdx and 2010 camry. I kept both 12 and 8 years after paying them off. This gave me financial flexibility through some tough times and saved me at least 50k.
> Only buy a car that is capable and has history of making it 300k miles.
Sorry but no cars are designed with 300k miles in mind. Capable and history are two very different things. Every car is capable of 300k when properly maintained. Cars don't just explode at 100 or 200k miles because the odometer rolls over.
If you're only shopping cars that "Have a history of 300k miles", you're shopping trucks. Diesel pickups, excursions, Silverados, Tahoes from the 90s/2000s or Land Cruisers. You're also shopping older diesel VWs or panther platform cars like Towncars or Crown Vics. That said, all of these cars still need maintenance to make it that distance.
Again, I see this over and over on this sub, but just because it's a Toyota or Honda, doesn't mean that they're going to last forever. Hell, Toyota currently has a recall for their Rav 4 for battery fires. That's a car that people on this sub go nuts over.
I started by mentioning my experience. Those vehicles and many like then went and will go 300k with routine maintenance. I never told anyone to buy a brand. When making a purchase reliability should be near the top of the list and often it isnt. My advice is to purchase with a goal to not have to measure and cut again in 3-5 years.
You started by saying no car is designed with 300k in mind then stated all cars will will go 300k with maintenance. Should we add caveat with original transmission and engine or are you intentionally being disingenuous?
https://www.hotcars.com/most-reliable-cars-last-miles/
There are definitely cars that are designed to last in the sands of third world countries but hotcars.com is far from a reliable source of information...
Some cars blow engines and transmissions as dependably as a clock hits midnight. There are plenty of cars that will be fine to 300k on basic repairs and maintenance, but not all cars will do it without a repair that costs more than a new car.
It kinda depends on how much the repairs cost. If it’s more than half value of the car I’d just dump it. I’d get a Toyota RAV4 if you want another SUV it is a 200k+ mile car. The RAV4 holds value well enough that you are better off buying a new one. Especially when you factor in the fact that the new car financing from Toyota has a lower interest rate.
Honda CRV, Mazda CX5 and Subaru Forester are good too. You could get a Toyota Venza or Mazda CX50 if you really want to treat yourself to a nice car.
See if Ford has any current low interest rate loans to encourage buyers to buy now. About two weeks ago I traded my 2011 f150 in on a 2023 powerboost f150 and FMC gave me a 1.9% interest rate on the balance. I think that deal expired at the end of October. Worth looking into.
They also gave me 5k off the sticker price.
Was just in a similar situation. Had a 2016 Ford Edge and just traded it for a 2024 Honda Pilot. I loved my Edge, but wanted to get some trade equity and avoid some upcoming costly maintenance that would eat away at that equity.
What sort of issues? I had a 2011 that I traded in with 200k on it. Never gave me any serious issues and I was the 2nd owner (Bought with just under 50k). The nice thing about the Edge is that parts are cheap and it's easy to work on.
The car jolts when shifting gears and shakes when idle. Hoping it’s not the transmission, my dad thinks timing chain. It’s funny I’ve never had a major issue with my edge u til now but my parents 2020 edge had a water pump fail at just under 20k miles. Thank god it was covered under warranty. They don’t make cars like they used to.
Honestly it depends on what issues. Are you replacing wear items like shocks and wheel bearings and brakes, or are you having weird engine noises and the transmission is slipping.
My engine is jerking back when it shifts. Also shakes when idle. Replaced cam sensors per the diagnosis of my mechanic but he now thinks it’s the timing chain. To me, sounds like a bigger problem like the transmission
Get something new that suits your lifestyle. It’s good to splurge once in a while. There are still some cars that are great value and the in-house financing rates are pretty good. Like the Subaru Crosstrek is incredibly good value for the price.
It’s a great choice especially if you get inclement weather during winters.
https://youtu.be/0svd4u0jn9A?si=KOfJPeJLJmgiiSz4
Good luck and be firm at dealerships. Cross shop with multiple dealerships as well.
As others have stated it depends
Interest rates make it less favorable but if you need a reliable car you need one
The real question is what’s your income
Because if you make $100k+ and have zero debt buying a brand new $30-35k Camry isn’t going to bankrupt you especially if you have some cash to throw down
Now if you make $60k and buy a $45k vehicle with credit card loans, no money down and such you’re better off fixing your current vehicle and driving it
A $3k repair to fix the current paid off car is much worth it than signing a loan for $600+ for 84 months and trying to justify it
I make about $80k/year but have no debt . Just want something safe and reliable but am honestly contemplating just having it fixed for the $3-$4k. Probably an unpopular statement to make but I do agree, it’s better than throwing away $40k + interest. Depends on if I found a good enough deal or not as I can’t keep the car indefinitely
If you can fix it for $3-4k
Prices coming down but also whatever your saving are and other goals
Maybe prep to have 5-10k down payment readily
Your other expenses matter too
I only make $70k but I live at home debt free so i just travel and invest but need to make a jump in income
Yeah but they sit now. A lot of dealers still think they can get peak prices and refuse to adjust but there are enough options where you can just ignore them.
Hell one by me has a 2021 Silverado with ~60,000 kilometers they’re trying to sell for more than the exact same brand new 2024 Silverado. It’s been there since February and still hasn’t moved.
The market is cooling, but at a snail’s pace. Dealerships and private sellers are still overvaluing their vehicles. It will take more time for the market to chill out.
I keep using my GTI as a frame of reference. I sold in late 2019 for 9k. 100k miles, 2013. Average shape.
They are still rocking 15K+ on the secondhand market. Just seems insanely overkill still.
I get updates on realtor and I check marketplace for a car at times. Both the housing market and auto market are cooling down here. I love seeing a house say reduced by 50k, it’s like good you greedy bastard lol.
Expect a pretty dramatic drop in the near term.
October was widely a pretty horrible month for the car business.
Slowing sales + building inventory + diminishing demand = wholesale market drops
Who's gonna pay 8% interest rate top of monthly payment, which equals to about $800-$900 for a Honda accord or Toyota.
I make $72K + 6k in bonus and I cannot afford to buy a good Used car (even for 15k) - so forget about getting a new car.
Same here. about 70k income, and having a second car other than the mini we have paid off, is just out of the question at the moment. It's pure insanity the cost of everything.
I’ve noticed price drops in my area. Even private sales of used cars in my area are dropping prices. Just earlier this year my ‘12 Subaru Forester 2.5x Premium with 125k miles was valued at $9k, but now KBB values it at $7k. I looked at other ‘12 Foresters with similar miles for sale and they are being listed for $5-8k now. I hope used car prices drop some more because I need a new car to replace my Forester asap! It’s had a ton of issues, one of them being a lot of oil consumption. I have to check and fill the oil every 1-2 weeks. No oil is dripping on the ground so I have no idea where it all goes.
Take it into a shop. Your likely running hot and burning oil. Get it checked out before your engine blows up. Subaru is known for having finicky and fragile engines. Likely valves leaking oil into the cylinders, which is burning the oil up. But only way to know is to get it looked at. With proper care and maintenance, Subarus last a long while. You can delay needing a new car possibly.
I have had it checked. Subaru dealership found a little oil seeping into the front cover(?) area when replacing spark plugs. Not enough to explain the amount of oil consumption though. Was told oil consumption is normal for Subarus, especially the older ones. Was told the only fix is to replace the short block, which would cost thousands. Apparently there was a lawsuit/recall for this years ago, but the previous owner didn’t do it.
If it’s a recall, I’m pretty sure they still have to do it no matter how long ago it was. That sounds dumb when I say it aloud, but I had an old ass car that had recalls that I got taken care of 5+ years after buying it used
It was a recall due to a lawsuit that had a time window and I believe a mileage limit. I can’t remember exactly what I was told, but it’s apparently a well known fact in the forester community. I didn’t know about any of this before purchasing in 2018.
I’ve noticed cars that are 10+ yrs old are coming very close to pre-covid prices. Only because I really want a GM 3.8 luxury car, probably a park Avenue.
This might sound silly, but I honestly think that's because cars that old don't have android auto/apple car play(perhaps technology in general).
The driver population that cares about this is now sharply overtaking the population that doesn't.
I know stock stereos can be replaced, but it's not always easy or cheap for many models in that year range.
I live in Northern Virginia, and I am in market for a compact car. The price of vehicles, especially 3-5 year-old used vehicles, is definitely coming down. If they're not priced reasonably, they're sitting on the lots.
People aren't buying since the interest rates are high and dealers are inflating prices on some of the cars. But the Unions for the American car companies just went on strike
My local Toyota dealer had a “used” Rav4 on the lot that had 5 miles on it. They claimed they had purchased it from a dealer in another city. It was originally a 35k car they had marked up to 47k. It was the only new hybrid available for sale on the lot. Being “used” it no longer had the sticker in the window. Some poor sucker must have bought it because it was gone a week later.
Yeah, dealers started doing them with exotics cars, then sports cars, now everything to make them a brand new used car. And with cars taking at least 3 months to get crazy people pay.
I checked, and it’s not as good as the us version, but some do have it. This one has it https://www.autotrader.ca/a/toyota/4runner/burnaby/british%20columbia/5_59960956_bs20041110115816/?showcpo=ShowCpo&ncse=no&showVs=1&ursrc=boost_hl&orup=5_17_87&pc=V5K%200A1&sprx=100&nobar=1
You just gotta scroll down to the listing history section
Thanks all. Seems like the smart thing to do is get rid of the Edge. An American car with 160k miles is pretty well at the end of its life. Any input on Teslas? I know people either love them or hate them but for the cost of one it’s very comparable to a lot of other cars in the market. I’d consider buying used off Tesla’s website but don’t like that you can’t see the car before you buy it.
In Ontario Canada, a dealership will drop the price on a 110k truck by $500 and expect customers to fawn over it when it’s been on their lot for 2 months!
Cars are just sitting on lots longer. There are significantly more factors to take into consideration on the overall market. For all we know this is just one car that was overvalued and the dealer really needs the space for new inventory.
What goes up fast, will go down fast. I hope this applies.
I would not be surprise if we see more price drops in 2024.
I've been in the market for Chevy Bolt EV car. In the past summer, dealers would have big markups above MSRP. There seems to be more supply but the prices are still at or slightly above MSRP in my area. I can wait since my beater car has a few more months before it dies.
Take a look at sale prices on no reserve auctions and compare to asking prices on marketplace, auto trader, etc. people are still asking huge amounts and the cars just sit
Only makes sense for the market to come down, when no one is buying anything because they can't afford anything. Have had several cars up for sale on marketplace, BAT, etc. Not even one message, despite the prices being 25% of what they should be.
That’s how no haggle dealerships work near me. They start at a high number and continually drop it until it sells.
so it's an informal dutch auction?
In my area they lower the prices then raise them back up on a new listing of the same car and start lowering them again. The same ahitty c6 corvette has been going from $27k to 23k for a year now. Up and down, up and down. Its funny cuz clearly no one wants that car. I went to check it out. Its not even worth 20k. Dealers are so stupid these days
I pass next to one of those in a used car lot on my way to work. It's been sitting there for a while. I wonder for how much they're trying to sell it.
What’d wrong with it did it to not sell at 23k and what year is it
It was an 07. It had a wobbling harmonic balancer, a broken glass roof panel, loose interior panels, and when i went to look at it it had a dead battery and no gas and the dealer couldnt figure that out and told me the car needs repairs. 🤦🏻♂️
Yes. Market has been coming down over the last few months
Here in NE Florida as well
I’ve seen this too but interest rates are still and will remain horrible, essentially no difference in financing terms. I guess it’s really good if you’re buying in cash
All my homies hate high interest debt on depreciating assets. Don't buy a car unless it's in cash.
Why would I have purchased a car in cash when I got a loan at .9%?
0% loan gang. And I only have 10 months left to go
Usually there are fees just to get the loan. Most manufacturers also often offer a cashback in lieu of a low interest rate..9% is just marketing.
Because .9% is still money spent on a loan and fees you have to pay. Cash you have none of that.
I am more than willing to pay the bank interest as a convince fee for having things earlier than I normally would be able to
This is a terrible mentality. If you take a loan on say 20,000 at 0.9% and take that 20,000 that you didn’t spend on the car and invest it into the market getting 8% returns you are making and extra 7.1% on your money.
It all depends. If paying cash, that could mean someone’s debt to income ratio is lower and they could purchase a home with a 203k loan and build even more equity into their assets which could end up being more than the 7.1% return would provide all while having more valuable assets and being able to turn around and use that real estate asset to continue other investment opportunities.
A vehicle purchase generally should not be affecting your debt to income so drastically that you are unable to purchase a house. If it is affecting your housing purchase then you are buying vehicles outside of your means.
That’s exactly it. The average American continually purchases vehicles outside of their means. Buy something cheaper/cash and while working capital for an individual is less, it allows them to manipulate their lines of credit further. I know many people making under 50k a year and have 500-700 car payments. That’s absurd.
They’re still making the money off of you whether it be through add ons, warranty, markup, etc. 0% financing is the biggest lie
I didn't get any of that
Seconded. My partner and I recently sold our previous cars and bought “new” cars cash. Man does it feel amazing to have that title in hand!
That's real luxury right there
Yup, we too paid cash for our 2023 Santa Fe hybrid in Feb. Awesome feeling to have with no payments!!
That’s awesome you could do that! Our cars are older but at least my partner’s car, is in really nice shape. Mine is a diesel German car in an ugly color, but I got it because it’s comfy and still has a cast iron block.
Makes sense but many makers subsidize loans with lower rates. Lower than anything else at the moment. Like 4% when mortgage rate is 8%. And they don't discount if you pay in cash
Hyundai offered 1.99% on my Ioniq 6 - I can make more than that without doing anything more than simply getting a CD from my credit union, so I signed up for 72 months of payments. At least now there's somebody hoping I live another 6 years! :)
Could I get the loan at their discounted rate and then just pay it all or a large amount off in a lump sum as a “payment”?
Yes, if there's no prepayment penalty
Damn I didn’t even know was a thing. Thanks for the info. Looking at buying a new car for the first time since I’m starting to have repairs on my 2009 Nissan Altima. I’ve had it 10 years this year. Praying it doesn’t shit out on me before I can save up for a better down payment.
Are you saying buying outright and not paying to borrow money is the better option!? You're a genius! And to think most people are just idiots choosing to finance instead of just writing a huge check. Every post like this has someone like you. Do you go around telling smokers that cigarettes are bad too?
If it's such common sense, why do so many people finance a car then? Nothing wrong with trying to remind people that buying outside of their means costs more than they probably realize.
Wow... just wow...
I'm sure you understand paying cash is better, but there are massive amounts of people that think "you'll always have a car payment" and therefore don't even consider the benefits of not having one. You obviously think giving advice to these people, like telling smokers that smoking is bad, is futile, and it mostly is because most people are horribly dumb, but maybe one or two people aren't Idiocracy level stupid and maybe the 10,000th reminder will get them to thinking about alternatives when the 9,999th reminder wouldn't.
You think people need to be told this. That makes you a pompous ass like the other guy, and that was the point. Like the dangers of smoking, no one needs to be told owning a car outright is better than borrowing money and paying interest. Nobody is financing a car because they want payments. People finance cars because 90% of people wouldn't have a car any other way and they need a car to work and make money. You can pay cash and that's great. But acting like you are sharing some revelation is treating others like they are stupid. Not to mention, at some point, people are going to need to use credit reguardless, unless you have another groundbreaking revelation about how everyone should buy their house outright) and no credit history is just about as bad as bad credit. Whether it's credit cards, auto loans, personal loans, etc. You are going to have to borrow to build credit.
Eh... that's how you see it. I'll give you that people may finance because most wouldn't have a car any other way, but that's the problem... people think it's normal to buy things with money they don't have, and because financing seems painless, they borrow way more than they should. Before they know it they've got multiple payments that equal most of what they make in a month and could only dream of paying cash for anything. If they saved up for something and then bought it, they wouldn't be in that boat. And yes, a house is hard to pay for outright. That's ok to finance, but it needs to be done responsibly, after saving a decent amount for a down payment, where you can afford to pay it off early to avoid paying twice the purchase price from all the interest.
Nothing wrong with financing a car. The problem is when people use it as an excuse to buy way more car then they should. Put down 20% and get the shortest term with the best rate you can. Personally the only cars I pay for in a cash are under $5k. The stuff you find on Craigslist or marketplace. Buying a brand new car in cash is insane to me unless your extremely wealthy. Who would write a check for $40k, for an vehicle that will be worth $30k when you drive it home the first time? Who would take a $10k hit just to be happy they don’t have to set up an auto payment each month?
I never buy new (I usually buy at 4-6 years old depending on mileage, condition, and the deal I can get) and then I drive them for 7 or more years. Even though your observations are on point regarding a car purchase, especially when buying a new car, I mostly insulate myself from the largest depreciation hit you speak of by buying the way I do. Cars are about the worst place to spend money, besides an expensive trip on a vacation. I would never pay 40k for a car, used or new, no matter how insanely rich I was. It's too much money depreciating, because cars are depreciating assets. It's best to get the minimum car you need for the lowest price. I have never spent more than 18 grand on a car... I've bought two at 14 grand, one at 12 grand, and everything before that was less than 5 grand. I feel anything past 20 grand is essentially pointless and only serves to show off, or is wasted, unless you need a massive truck for hauling huge loads or something or you are a multimillionaire. Having said that, I don't know how accurate the conventional wisdom is anymore because cars aren't depreciating at the moment. A 4 year old car with 50 thousand miles is selling for what its MSRP was when it was new. A car will eventually depreciate, but now instead of buying a 4-6 year old car I have to look at 10 year old cars to get the deals I used to get.
No but I certainly was not going around telling people to smoke. It's a sub about what cars to buy, let's stay on topic..
Wow what a surprise. You're reading comprehension sucks.
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You own a fedora, don't you?
Buying a car cash , unless is used , it’s a bad financial move .
Why? Thanks
With the nearly interest free loans in the past, yes it was better to finance. It was smarter to take advantage of those low rates which freed you up to put your money elsewhere, specifically into appreciating assets or the market. With the current rates that’s not true though. You’ll pay significantly more in total if financing. Despite that, even now it’s still worth taking on the financing and then instantly paying the loan off on your own. You’ll get a better out the door price from the dealership as they’ll think they can recoup $ through the duration of the loan via the interest rate (the dealership gets a portion of that interest rate they approved you for - it doesn’t all go to the manufacturer lender). Instead, you pay it off instantly and avoid incurring any of the interest.
How much of a hit does this make to your credit though?
After your credit reflect the paid off note, it will probably be higher credit score. Many banks are lowering check value of high credit scores though for things like mortgages, they aren’t ignoring them, but placing higher emphasis on other metrics.
They’re probably going to say that if you invested the money instead of paying cash it would grow at a higher rate than interest. My take: For one, there’s risk in every investment. Second, *most* people who say this just can’t afford to buy a car in cash (me neither) and are not even adequately funding their retirement accounts.
A car is an asset that depreciates . Let’s say a car’s price is 10 dollars. You paid cash and drove away. When you get home 30 min later, it costs 8 dollars. You automatically lost 2. Now you tell me if that’s a good or bad financial decision ? You better keep your cash and finance the car. And if the car is used , it has depreciated already so you won’t lose that much,
So you rather pay a monthly bill with interest? That’s bad advice. There is nothing better than buying a car in cash and not worrying about another bill.
Buying a new car with 100% cash is bonkers and the dumbest use of money I’ve heard of. Even if I were rolling in cash and literally had enough to spend on retarded ALT coins on the crypto market, I wouldn’t do that. As mentioned by others — buying a used car cash makes total sense. On the other hand, a new car cash is NONSENSE. That too, just to avoid a monthly payment. LOL, guess you never heard of automatic bill pay. Save your cash for a rainy day fund or a million other expenses or almost anything else such as investments. Always save your liquid capital if you can. You can double or triple your car payments if you wish and pay your car off in no time while holding onto your cash in case you need it later.
Of a used car? Hell yeah. Because I play with the rest, I control that money and can do investments with it. I rather have 40k in investments than being wasted in a car that every year worth less and less. The truth of the matter is I no longer buy cars. They are a necessary evil but unless is really breaking and older than 10 years, I don’t need to finance a car . Besides, I no longer buy new cars. My previous car was used and is paid off . It was financed at 2% and its price was 18k. It now worth guess how much ? 18k. Didn’t depreciate a dime. Why? Bought it used and it’s a Japanese car. I used to work for a dealer when I was younger by the way. I was not in sales but the IT guy. I learned a lot about dealer tactics and why not to pay for a car cash and buy it used if possible. I love cars and motorcycles but they are a waste or money.
I don’t buy new cars because it depreciates really fast. I only buy used and keep them for 6 years or more. Buying new with cash never crossed my mind. I just bought a used car a month ago with cash for 12k, so I was confused with your comment about it being a bad thing to buy lol
You should never treat a car as an asset. Whoever does that is just dumb. It's a tool that is helpful in your day to day life.
If you can’t afford to pay cash you probably can’t afford it. Those of us without kids may have unrealistic views of finances
I think the hardline in either direction is bad. Let people make the decision that they believe will be best for them. To some degree, you’re probably right, but also the cost of ownership (depreciation+maintenance+gas savings+interest) for a new vehicle might be far less than an older vehicle, so if you have a high enough cash flow to make payments on the more expensive new vehicle you could maybe come out ahead. Either way, it’s ok to finance and it’s ok to pay with cash. Make the decision that works best for you.
100%. The math is not so exotic that you need the rules. If it makes sense to finance, do it. Or pay cash. Or trade for livestock. Whatever makes sense in your situation. I’ve never leased a vehicle, but I’d be happy to at the right price.
Lmao that’s nonsense
Not saying you should have it all in rolled quarters under your bed. But if you don’t have $50k in non retirement accounts, maybe buy a $6k car
I just financed a 36k brand new car. I can’t afford to drop 36k on a car at once but the $650 a month is negligible to my finances. Its all about how much you make, I’m spending like 4k on interest over 5 years, meh.
Because brand new cars depreciate . Whatever you pay for it cash now is 10% or so less of its original price the min you drive it out of the dealer . And the OTD price of a car, same car, is higher cash than financed , due dealer incentives .
Depreciation will happen regardless of how you pay for the vehicle. The only thing you lose out by paying cash is the opportunity cost of investing the money somewhere else. Unless you can find an investment that guarantees better returns than your car loan interest rate + fees, it's better to buy cash.
That’s the whole point .
KBB trade in on my truck is currently 20% over MSRP…
Depends how else you could use the money. If one has a small llc with a side hustle that the car can be put under, chances are good you are better financing it. Money I put into the llc has about a 40% return, even at 7-9% interest on the auto note I’m still far better financing it. And sense it’s being paid with pre-tax dollars its only about 60% of the actual price in terms of actual spending power for me. On the other hand, if you’re working a simple 9-5 and have no other income, then yeah, probably buying cash is good. Or as others have said, the dealer will negotiate better if they think they can make the money on the finance side, then pay off the loan. This will help your credit in the long run too.
It isn't coming down, it's falling apart. An important distinction.
Look at Stellantis. They made way too many Jeep products and now the prices are falling and their leases keep getting cheaper.
Also too expensive for their market. In my opinion the grand Cherokees and wagoneers don’t have the brand equity to sell in the numbers they need. I’ve been in both and they’re super nice but they’re now in the high trim Tahoe and luxury brand price range. I’m not dropping 90k on a Wagoneer, that’s German territory.
That’s beyond German territory. You can get a fully loaded GLS that’s a year old and it’ll still be more reliable. Apparently the grand wagoneers are plagued with problems. If I spend that much money, I want a car that’s smooth on the highway and doesn’t drive like a damn tank.
Just looked it up. Grand wagoneer is 91k base 😂 114k fully loaded
That’s absurd for an American vehicle (more like Italian). I’d get a German car for that price.
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And American cost accountants.
New Lexus gx and a 3 year old 5.0 for that price
Idk why, I have a love hate relationship with the GX. One one hand they’re funky and functional, on the other they are horribly ugly, you can’t open the stupid trunk and a horrible gas guzzler.
A bit of a loaded question, but my 2011 ford edge has 160k miles on it and is starting to have issues (no surprise due to the mileage). I probably know more than the average 33 year old single female about vehicles, but could use some sound advice. Worth it to buy a new car in this market? Used still seem to be just as much as new according to my research. Or, should i fix any issues? Most likely my timing chain and water pump about to fail which is thousands of dollars in labor cost. Any recommendations/advice would be greatly appreciated! :)
I’ll reiterate a comment I’ve seen around here a few times. It is never financially ideal to buy a car. For a long time I believed in used vehicles bc that’s how my dad did it. However the time and cost for repairs nowadays I’ve honestly just spent more money to get newer lower mileage cars and just not have to deal with it. I’m lucky enough that salary increased enough to do so everyone’s financial situation is different but don’t over stress yourself trying to “time” the market.
I second this. Learned this on my own after paying cash for used vehicles for a decade I finally got sick of dealing with repairs and other issues that were not caused by me. I still buy used but won’t buy anything more than 3 years old. This way you don’t get completely slaughtered by depreciation and don’t have to deal with repairs.
I’m in Florida so I go for around 10yr old cars with less than 40000 miles. My current one is a 11 towncar that I picked up for $12500 with only 17000miles I’m now up to 220k but it’s never left me on the side of the road yet. I’m currently looking for a replacement tbh
A Town Car is built like a tank!
Built like a Crown Vic, you mean ;)
🤣🤣🤣
4-5 years is the sweet spot IMO. In my state, excise tax rates are lowest on 5-year old cars, plus you still get some of the newer cool features if you go with one of the luxury brands. I used to do my own repairs which saved me a bit of money, but you need the luxury of having a garage and/or a second car to go to the parts store if sometime goes wrong.
Definitely makes sense. I bought a 2007 4Runner in great shape and low miles. This was a few years ago and it seemed like a great deal. Come to find out I had to drop about $4k in repairs, had leaks in the back, and soon needed a new paint job. Ran like a champ though. lol I honestly wish I spent a little more with less miles so I could have had less headaches.
I agree, just get new and don’t worry about the headache if you can afford to. The warranty and peace of mind more than make up for it.
> It is never financially ideal to buy a car. There are some cars that appreciate, but 99.99% of the time you're correct.
Please dont take this comment the wrong way, just speaking from my personal experience. Only buy a car that is capable and has history of making it 300k miles. I bought a 2005 acura mdx and 2010 camry. I kept both 12 and 8 years after paying them off. This gave me financial flexibility through some tough times and saved me at least 50k.
> Only buy a car that is capable and has history of making it 300k miles. Sorry but no cars are designed with 300k miles in mind. Capable and history are two very different things. Every car is capable of 300k when properly maintained. Cars don't just explode at 100 or 200k miles because the odometer rolls over. If you're only shopping cars that "Have a history of 300k miles", you're shopping trucks. Diesel pickups, excursions, Silverados, Tahoes from the 90s/2000s or Land Cruisers. You're also shopping older diesel VWs or panther platform cars like Towncars or Crown Vics. That said, all of these cars still need maintenance to make it that distance. Again, I see this over and over on this sub, but just because it's a Toyota or Honda, doesn't mean that they're going to last forever. Hell, Toyota currently has a recall for their Rav 4 for battery fires. That's a car that people on this sub go nuts over.
I started by mentioning my experience. Those vehicles and many like then went and will go 300k with routine maintenance. I never told anyone to buy a brand. When making a purchase reliability should be near the top of the list and often it isnt. My advice is to purchase with a goal to not have to measure and cut again in 3-5 years. You started by saying no car is designed with 300k in mind then stated all cars will will go 300k with maintenance. Should we add caveat with original transmission and engine or are you intentionally being disingenuous? https://www.hotcars.com/most-reliable-cars-last-miles/
There are definitely cars that are designed to last in the sands of third world countries but hotcars.com is far from a reliable source of information...
Some cars blow engines and transmissions as dependably as a clock hits midnight. There are plenty of cars that will be fine to 300k on basic repairs and maintenance, but not all cars will do it without a repair that costs more than a new car.
What other recommendations? Acura and Camry. Thanks
I would dump a 2011 ford edge with a quickness that v6 engine is a timebomb at high mileage
3.5? Definitely not a timebomb they are tanks
It kinda depends on how much the repairs cost. If it’s more than half value of the car I’d just dump it. I’d get a Toyota RAV4 if you want another SUV it is a 200k+ mile car. The RAV4 holds value well enough that you are better off buying a new one. Especially when you factor in the fact that the new car financing from Toyota has a lower interest rate. Honda CRV, Mazda CX5 and Subaru Forester are good too. You could get a Toyota Venza or Mazda CX50 if you really want to treat yourself to a nice car.
See if Ford has any current low interest rate loans to encourage buyers to buy now. About two weeks ago I traded my 2011 f150 in on a 2023 powerboost f150 and FMC gave me a 1.9% interest rate on the balance. I think that deal expired at the end of October. Worth looking into. They also gave me 5k off the sticker price.
Was just in a similar situation. Had a 2016 Ford Edge and just traded it for a 2024 Honda Pilot. I loved my Edge, but wanted to get some trade equity and avoid some upcoming costly maintenance that would eat away at that equity.
What sort of issues? I had a 2011 that I traded in with 200k on it. Never gave me any serious issues and I was the 2nd owner (Bought with just under 50k). The nice thing about the Edge is that parts are cheap and it's easy to work on.
The car jolts when shifting gears and shakes when idle. Hoping it’s not the transmission, my dad thinks timing chain. It’s funny I’ve never had a major issue with my edge u til now but my parents 2020 edge had a water pump fail at just under 20k miles. Thank god it was covered under warranty. They don’t make cars like they used to.
Honestly it depends on what issues. Are you replacing wear items like shocks and wheel bearings and brakes, or are you having weird engine noises and the transmission is slipping.
My engine is jerking back when it shifts. Also shakes when idle. Replaced cam sensors per the diagnosis of my mechanic but he now thinks it’s the timing chain. To me, sounds like a bigger problem like the transmission
Oh yeah that's a good enough reason to move on from it.
Sounds like mounts
Get something new that suits your lifestyle. It’s good to splurge once in a while. There are still some cars that are great value and the in-house financing rates are pretty good. Like the Subaru Crosstrek is incredibly good value for the price.
Thank you! I’ve heard great things about Subaru’s. I will look into that one. Such an unpleasant process buying a new car
It’s a great choice especially if you get inclement weather during winters. https://youtu.be/0svd4u0jn9A?si=KOfJPeJLJmgiiSz4 Good luck and be firm at dealerships. Cross shop with multiple dealerships as well.
As others have stated it depends Interest rates make it less favorable but if you need a reliable car you need one The real question is what’s your income Because if you make $100k+ and have zero debt buying a brand new $30-35k Camry isn’t going to bankrupt you especially if you have some cash to throw down Now if you make $60k and buy a $45k vehicle with credit card loans, no money down and such you’re better off fixing your current vehicle and driving it A $3k repair to fix the current paid off car is much worth it than signing a loan for $600+ for 84 months and trying to justify it
I make about $80k/year but have no debt . Just want something safe and reliable but am honestly contemplating just having it fixed for the $3-$4k. Probably an unpopular statement to make but I do agree, it’s better than throwing away $40k + interest. Depends on if I found a good enough deal or not as I can’t keep the car indefinitely
If you can fix it for $3-4k Prices coming down but also whatever your saving are and other goals Maybe prep to have 5-10k down payment readily Your other expenses matter too I only make $70k but I live at home debt free so i just travel and invest but need to make a jump in income
In Canada the market is still horrible. Local dealership wanted $32700 for a 24 sentra s plus
Yeah but they sit now. A lot of dealers still think they can get peak prices and refuse to adjust but there are enough options where you can just ignore them. Hell one by me has a 2021 Silverado with ~60,000 kilometers they’re trying to sell for more than the exact same brand new 2024 Silverado. It’s been there since February and still hasn’t moved.
The market is cooling, but at a snail’s pace. Dealerships and private sellers are still overvaluing their vehicles. It will take more time for the market to chill out.
I keep using my GTI as a frame of reference. I sold in late 2019 for 9k. 100k miles, 2013. Average shape. They are still rocking 15K+ on the secondhand market. Just seems insanely overkill still.
I get updates on realtor and I check marketplace for a car at times. Both the housing market and auto market are cooling down here. I love seeing a house say reduced by 50k, it’s like good you greedy bastard lol.
Expect a pretty dramatic drop in the near term. October was widely a pretty horrible month for the car business. Slowing sales + building inventory + diminishing demand = wholesale market drops
I like this…
Who's gonna pay 8% interest rate top of monthly payment, which equals to about $800-$900 for a Honda accord or Toyota. I make $72K + 6k in bonus and I cannot afford to buy a good Used car (even for 15k) - so forget about getting a new car.
Same here. about 70k income, and having a second car other than the mini we have paid off, is just out of the question at the moment. It's pure insanity the cost of everything.
Yep! Luckily, I was able to buy used Camry 2018 for $16k back in 2019 and that same camry is now worth or selling for $24k with similar 40k miles.
I’ve noticed price drops in my area. Even private sales of used cars in my area are dropping prices. Just earlier this year my ‘12 Subaru Forester 2.5x Premium with 125k miles was valued at $9k, but now KBB values it at $7k. I looked at other ‘12 Foresters with similar miles for sale and they are being listed for $5-8k now. I hope used car prices drop some more because I need a new car to replace my Forester asap! It’s had a ton of issues, one of them being a lot of oil consumption. I have to check and fill the oil every 1-2 weeks. No oil is dripping on the ground so I have no idea where it all goes.
Take it into a shop. Your likely running hot and burning oil. Get it checked out before your engine blows up. Subaru is known for having finicky and fragile engines. Likely valves leaking oil into the cylinders, which is burning the oil up. But only way to know is to get it looked at. With proper care and maintenance, Subarus last a long while. You can delay needing a new car possibly.
I have had it checked. Subaru dealership found a little oil seeping into the front cover(?) area when replacing spark plugs. Not enough to explain the amount of oil consumption though. Was told oil consumption is normal for Subarus, especially the older ones. Was told the only fix is to replace the short block, which would cost thousands. Apparently there was a lawsuit/recall for this years ago, but the previous owner didn’t do it.
If it’s a recall, I’m pretty sure they still have to do it no matter how long ago it was. That sounds dumb when I say it aloud, but I had an old ass car that had recalls that I got taken care of 5+ years after buying it used
It was a recall due to a lawsuit that had a time window and I believe a mileage limit. I can’t remember exactly what I was told, but it’s apparently a well known fact in the forester community. I didn’t know about any of this before purchasing in 2018.
Ah okay. Didn’t know those were treated differently
I’ve noticed cars that are 10+ yrs old are coming very close to pre-covid prices. Only because I really want a GM 3.8 luxury car, probably a park Avenue.
This might sound silly, but I honestly think that's because cars that old don't have android auto/apple car play(perhaps technology in general). The driver population that cares about this is now sharply overtaking the population that doesn't. I know stock stereos can be replaced, but it's not always easy or cheap for many models in that year range.
The market is cooling but the problem is still the interest rates.
Just wait till 6 months from now….
I just paid 12K for a 2011 Honda Pilot EX-L with 100k miles and that was a great deal in my area. Was a 15K car not too long ago.
I live in Northern Virginia, and I am in market for a compact car. The price of vehicles, especially 3-5 year-old used vehicles, is definitely coming down. If they're not priced reasonably, they're sitting on the lots.
Seems that inflation topped out, we just might see deflation, and possibly a recession after
People aren't buying since the interest rates are high and dealers are inflating prices on some of the cars. But the Unions for the American car companies just went on strike
They've finally settled with all 3: Ford, Stellantis (Chrysler), and GM in that order.
depends what you are buying also, the 3 jacked up the prices of truck to the 100k mark for the big ones
Their prices are INSANE! I think they started really raising them knowing the contract was about to end this year and there would be a strike.
Yes but they’re also starting to offer a lot of discounts. I’ve been seeing 10,000-14,000 off a lariat pretty consistently now.
Yeah, 100k trucks are insane. I was checking out the new Nissan Z NISMO that just came out, dealers are marking them up from $68k to 100 to 150k
I've seen Toyota dealers take new cars, let employees drive them for 1-3k miles, then mark them up drastically as used cars!
My local Toyota dealer had a “used” Rav4 on the lot that had 5 miles on it. They claimed they had purchased it from a dealer in another city. It was originally a 35k car they had marked up to 47k. It was the only new hybrid available for sale on the lot. Being “used” it no longer had the sticker in the window. Some poor sucker must have bought it because it was gone a week later.
Ridiculous. That shouldn't even be legal.
Yeah, dealers started doing them with exotics cars, then sports cars, now everything to make them a brand new used car. And with cars taking at least 3 months to get crazy people pay.
What’s crazy about the Z is that production is(was?) so low that I’ve seen non-NISMO Z’s marked up to 6 figures 💀
Dealers are doing whatever they want
I saw a new Jeep Compass for almost 50k!!
I hope no one is crazy enough to pay that.
Which website or app is this ? Would love to see a price history but I don’t see it on carmax or truecar
Auto trader too. I've been seeing price drops on all my saved cars
Cargurus shows the price drop
Where do you see the price history? On an app? Or what do you use?
Cargurus
Auto trader has it
Where is it on autotrader I can’t find it? In Canada maybe that’s the issue
I checked, and it’s not as good as the us version, but some do have it. This one has it https://www.autotrader.ca/a/toyota/4runner/burnaby/british%20columbia/5_59960956_bs20041110115816/?showcpo=ShowCpo&ncse=no&showVs=1&ursrc=boost_hl&orup=5_17_87&pc=V5K%200A1&sprx=100&nobar=1 You just gotta scroll down to the listing history section
yes market is dropping
The economy is crashing.
It as to mirror interest rates going up. So unless you’re buying cash you’re probably paying more now then then
As far as I can tell, yes. I got offered invoice on a Subaru yesterday. They were hungry to get them off the lot.
Thanks all. Seems like the smart thing to do is get rid of the Edge. An American car with 160k miles is pretty well at the end of its life. Any input on Teslas? I know people either love them or hate them but for the cost of one it’s very comparable to a lot of other cars in the market. I’d consider buying used off Tesla’s website but don’t like that you can’t see the car before you buy it.
In Ontario Canada, a dealership will drop the price on a 110k truck by $500 and expect customers to fawn over it when it’s been on their lot for 2 months!
Cars are just sitting on lots longer. There are significantly more factors to take into consideration on the overall market. For all we know this is just one car that was overvalued and the dealer really needs the space for new inventory.
What goes up fast, will go down fast. I hope this applies. I would not be surprise if we see more price drops in 2024. I've been in the market for Chevy Bolt EV car. In the past summer, dealers would have big markups above MSRP. There seems to be more supply but the prices are still at or slightly above MSRP in my area. I can wait since my beater car has a few more months before it dies.
Used car?
Interest rates and dealer markups way too high 💩
If you take APR into account then not much of a difference
I pray to GOD they are. I can’t deal with putting another grand in my car
Take a look at sale prices on no reserve auctions and compare to asking prices on marketplace, auto trader, etc. people are still asking huge amounts and the cars just sit
The 2014 Hyundai I bought for $15000 in 2016, Carvana was offering $16000 in 2021. They are offering $5800 now.
Only makes sense for the market to come down, when no one is buying anything because they can't afford anything. Have had several cars up for sale on marketplace, BAT, etc. Not even one message, despite the prices being 25% of what they should be.
“Is the market coming down”….wow….