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Cash for clunkers had little to no impact on the price of used cars, and any impact it has corrected itself years ago.
The drastic reduction in new cars sold from 2007-2009 and the slow recovery (2007 sales weren't matched until 2013) had a much bigger impact on the supply of used cars and subsequently prices. The spike in scrap steel prices 3-4 years ago also had an impact on the availability of the lowest-tier cars, because who wants to mess around trying to sell a $300 car to John Q. Public when the scrapyard would pay you the same money with no hassles?
I actually think the low-tier used car market has softened substantially the last couple of years. Last time I was looking for a beater it was hard to find anything driveable under about a grand, but lately I've seen "rusty but trusty" older vehicles advertised in the $300-$500 range. Heck, that's what you'd expect to pay for one when I was in high school 30 years ago.
I live in texas and have not seen used cars at those prices in years. nothing running for under 2K.
I dont buy new cars, but I also don't want to make payments on a used one either. I'm just wondering what happened to the cash car market.
Nothing. You got cash, you go buy a car with it. Like I did. You don't got enough cash, you buy a cheaper one or you keep saving. Really simple math.
I've only once had a car loan, and that's when I bought a brand new Toyota Corolla for super cheap back in 1995 and got 2% financing. All cars prior to that from 1974 to now have all been used cars paid for with cash I actually saved up for that purpose.
I buy older reliable vehicles I can afford. I know, it's an amazing concept in today's world.
But thats my point the cost of buying a used car is not as drastically cheaper than buying a new car like it used to be.
New cars themselves go up in price. I looked at a F350. This was a LX single cab long bed 4x4 diesel. 48, 000. This is a base model. The diesel was 9k so even if you get a gas engine you're still at 39,000.
A damn Suburban is touching 75,000.
There is a reason why used cars keep their value. New cars are freaking expensive.
The guy who bought my truck for 10 grand when the so-called "book value" was 16 didn't think used cars are too expensive. I have never been able to get anything close to what you see on the lots.
New cars themselves go up in price. I looked at a F350. This was a LX single cab long bed 4x4 diesel. 48, 000. This is a base model. The diesel was 9k so even if you get a gas engine you're still at 39,000.
A damn Suburban is touching 75,000.
There is a reason why used cars keep their value. New cars are freaking expensive.
but new cars have not gone up at the same rate as used cars, yes mid range has gone up a bit but on the low end not so much. a ford festiva today is marginally more expensive than a ford escort was in 98 which was marginally more expensive than the ford pinto was before that. .
When I bought a brand new GMC last June, the rebates and incentives were so great that it was actually less expensive than a 2 year old used one with 20K miles on it. The dealer told me that the trade in was more than what I was paying. That sucked me in and I traded in an SUV that I loved and was almost paid for... big mistake. Found out that I am not much of a pickup guy and wanted an SUV. I actually traded in the GMC with 9K miles on it and actually got more on the trade than what I paid for it ($1200 more). I traded it on a 12 year old SUV with low payments and I am so much happier now.
I have excellent credit but I prefer used as I am not impressed with new vehicles at all. Plus, buying used I can ditch it every couple of years and get something different and not feel guilty.
I live in texas and have not seen used cars at those prices in years. nothing running for under 2K.
Obviously there are regional variations, but I'm confident I could travel to Texas with a grand and leave with a car I could drive home and some change.
The guy who bought my truck for 10 grand when the so-called "book value" was 16 didn't think used cars are too expensive. I have never been able to get anything close to what you see on the lots.
That's because you're not a dealer. You can't offer financing or warranties or repairs. So you're dealing in a cash market. My diesel blue books for 5600 bucks. Most people offer 13-15000 and it's not even for sale yet
Quote:
Originally Posted by cyphorx
but new cars have not gone up at the same rate as used cars, yes mid range has gone up a bit but on the low end not so much. a ford festiva today is marginally more expensive than a ford escort was in 98 which was marginally more expensive than the ford pinto was before that. .
Not everyone is looking for a entry level car. And the entry level is a very cutthroat section. The market also depends on the popularity and demand of the brand or model. Some used cars you can't give away. And some you can demand top dollar.
Cars have gotten so expensive people are no longer willing to buy new. I can buy a pick up for $60 - 70 K new, or one that is four or five years old with 50 - 70 K miles for $25k
Demand for used cars has increased. For ne thing cars last longer now. It is normal for me to get 200,000 or more miles out of a car. Thus, a used one with 50K miles still has most of its life left. In the past, you were lucky to get 100K miles out of a car. If it has 50K miles, it was more than half dead (because most did not make it to 100).
It does not matter how much better the new one is (not much at all actually), I do not have $70k to spend on a vehicle, so I am not going to get it. But I will pay $25 K for a used one. So will 8000 other people, so I may have to pay $$30K for it. Still a bargain.
I think leases have increased over the years, that puts more used cars on the road. People cant afford the car new but can afford a lease.
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