Not a good time to buy a car

[5030]

Sounds good to me but... I'm not in the market for a new vehicle. Much as I drive (under 12K a year), my vehicles should outlast me. Hopefully.

 

[tradosaurus]

I watch a few car channels on Utube and the consensus is that by summer prices should start coming down to more reasonable levels as dealers are starting to lose money on cars sitting on the lots. Auction prices are coming down which indicate prices in general on cars are going down.

I need to buy a used car for my high school daughter so it will be interesting. I use to be able to find a decent car for $4k cash easy a few years ago.

 

[Blue Mule]

Even people with decent credit are being given 8-13% interest rates. It's causing payments to be jacked way up. My guess, and I could end up totally wrong, but my guess is that by summer automakers will have to start offering large rebates and incentives again to try and offset the interest rates. A lot of these companies want to keep cash flowing as much as possible because they're infusing that cash into EV development, so they're going to want to keep moving inventory. Will be interesting to see how this all shakes out.

I do know that my 2022 pickup truck has lost about 10k in value in the last few months, so the crash is definitely happening already. Thankfully I don't plan to ever get rid of my pickup truck.

 

[Hay Dude]

Even people with decent credit are being given 8-13% interest rates. It's causing payments to be jacked way up. My guess, and I could end up totally wrong, but my guess is that by summer automakers will have to start offering large rebates and incentives again to try and offset the interest rates. A lot of these companies want to keep cash flowing as much as possible because they're infusing that cash into EV development, so they're going to want to keep moving inventory. Will be interesting to see how this all shakes out.

I do know that my 2022 pickup truck has lost about 10k in value in the last few months, so the crash is definitely happening already. Thankfully I don't plan to ever get rid of my pickup truck.

I see prices coming down, a little, but I don’t see inventory that I used to see.
Local Ford dealer has like 2 F-150’s and a 250 gasser
My buddy is a tech there and says they can’t get any trucks allocated.

Kind of makes me believe prices will stay up (even with high interest rates) because supply is so bad.

Farm tractors are hopeless. There’s no inventory and prices are ridiculous.

 

[Blue Mule]

I see prices coming down, a little, but I don’t see inventory that I used to see.
Local Ford dealer has like 2 F-150’s and a 250 gasser
My buddy is a tech there and says they can’t get any trucks allocated.

Kind of makes me believe prices will stay up (even with high interest rates) because supply is so bad.

Farm tractors are hopeless. There’s no inventory and prices are ridiculous.

Our JD dealers here are finally fully restocked in tractors. Any tractor you want is on the lot. But, as you say prices are ridiculous. Today a 3025D with FEL costs what a 3043 with FEL cost 24 months ago.

 

[sd455dan]

Our JD dealers here are finally fully restocked in tractors. Any tractor you want is on the lot. But, as you say prices are ridiculous. Today a 3025D with FEL costs what a 3043 with FEL cost 24 months ago.

So if you want to buy new green you will need lots of green.?

 

[walnutman]

HD diesel pickups are now 80k-100k
I have a 2004 Dodge Cummins 2500 4x4 SLT. Bought it brand new 18 years ago. i think I paid 39K.
The first picture is of it at the dealership when I first picked it up.
Second picture is what it looks like now.

 

[check]

That's nice to hear that you have a dealer who wasn't a ***** during the last few months of "irrational exuberance " in the frothy auto market.
For close to 20 years I have been a loyal customer to a Ford dealer.. probably bought 15+\~ vehicles from them in those years and inevitably gave them front line ready High quality trades in that time. The past 18-24 months we bought 3 vehicles.. went to them first to buy out a lease that was ending.. they tried to stick us for an extra 4K over the residual ..citing "market value" ..I politely them no and the process was done with a friend who is a used car dealer. Then we were buying a 90k+ sticker price F450.. I get it, they are somewhat hard to find, I was willing to pay him sticker for it..they said they needed 20k over... I then not so politely told them to F off. Last straw was another lease they tried to bend me over on when we were trying to buy it out. They wanted 4500 plus their 699.00 "doc" fee over the original residual that was on the lease contract. ..That was the final straw and they have lost a customer, My advice is to remember who these dealers were that were ****** during this time, it's going to change.. don't reward their bad behavior with your hard earned dollars.

How can they ask for more than the residual? On my lease contract there is no option for the dealer to charge any more than exactly what the residual value is. And that is what I did when I bought out my current 2016 F150 after I leased it for two years. It was worth way more than the $31K I paid for it, but the dealer couldn’t do anything about that. He had to give it to me for the $31K.

 

[Tomtint]

How can they ask for more than the residual? On my lease contract there is no option for the dealer to charge any more than exactly what the residual value is. And that is what I did when I bought out my current 2016 F150 after I leased it for two years. It was worth way more than the $31K I paid for it, but the dealer couldn’t do anything about that. He had to give it to me for the $31K.

Because they are scum bags. I had called Ford for my payoff so I knew what it was. Also had my original lease contract which stated exactly what the residual was going to be at turn in time. It had language that said something to the effect that the dealer could add their juice to facilitate a buyout if that were to occur. In my mind that means they plug you for their "doc" fees to transfer the ownership from Ford to me. The contract also stipulated that in the event of a buyout, It had to be done at a Ford dealer, I could not go through Ford direct.
The work around for that is to have a friend in the used car business. A used car dealer can buy you out of a lease, or take your car in as a trade and bypass the dealer. You can then buy that car from them if you choose.

 

[Oaktree]

I do know that my 2022 pickup truck has lost about 10k in value in the last few months, so the crash is definitely happening already. Thankfully I don't plan to ever get rid of my pickup truck.

I likewise drive my vehicles until they're no longer roadworthy, so resale value is irrelevant to me. Actually, lower resale value is a plus since I always buy used.