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The condo I bought in 2012 is worth almost 4 times as much today. Yeah, I bought at .30 on the dollar. My mistake was... I should have bought 2 at the time, I had the cash.
Remember the car rental places will be flooding the auctions with 1-2 year old used cars now. No need to hold all those rental cars if no one is traveling. This will hurt existing used car prices AND force new car pricing to fall in line. https://autovistagroup.com/news-and-...cimates-demand
Many dealers would get re-finance deals for small business through the stimulus deal. They'll just pay the minimum and keep the car sitting on the lot. Used car dealerships typically last longer because they don't have to move inventory like a new car dealership. The new car dealerships are screwed because they gotta pay employees and manage inventories. They have pressures to move old inventory for new ones.
So, my local dealer sent me a "We want your used car, and will pay top dollar for it, call xxx-xxxx and find out how much" offer in the mail. So I called the number, entered the code on the mailer (so they know who is calling, obviously), and got a figure of about $13K for it. KBB says it is worth 7.5K private party, and $5.5K trade-in. So I'm bringing it in for an oil change anyway, and had them look at it. The mileage was within their tolerance, and it has maybe $500 in repairs needed (dents and dings). So, the sales guy says they'll give me five grand for it. "But what about your mailed offer?", I query. "Well, that's the marketing dept., You didn't really expect us to pay you that much for it, did you?"
LOL, now that I know who I'm dealing with, I'll have no problem at all turning the screws on them big time once they really start hurting, my offer will be LOW-LOW (way below their cost), and they can either sell it to me, or drive it themselves, don't really care either way, my preference would be they go out of business entirely. 90% of car dealerships sure do give the other 10% a bad name, don't they? No wonder people hate 'em.
Many dealers would get re-finance deals for small business through the stimulus deal. They'll just pay the minimum and keep the car sitting on the lot. Used car dealerships typically last longer because they don't have to move inventory like a new car dealership. The new car dealerships are screwed because they gotta pay employees and manage inventories. They have pressures to move old inventory for new ones.
A few flaws in your theory:
1. Dealers won't get re-finance deals for millions of dollars in depreciating inventory. They might get a small loan but not for the inventory.
2. Used dealers don't last longer, they might have lower overhead but they don't have the financing deals nor service dept that a new dealer does
3. New or used dealers still have to pay employees and manage inventories. They need to move older inventory since the interest on the floorplan is accruing and people expect a deal on leftover inventory.
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