Current New Vehicle Market

DSG2003Mach1

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Trucks, especially 3/4-1 tons, are the worst right now. A 2-3 year old one with <60k is bringing what they sold for new three years ago.
thats why I told my uncle to call you and order one, I had to get my jaw up off the floor after some of the info/pricing he was sending me on used trucks he was finding
 

jpro

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My local GM dealer has ZERO new units on the lot, just a few used vehicles. The Ford dealer is better but still looks pretty slim pickings. I'll just keep driving my junk and patiently wait for the floodgates to open.
Right? I have a used vehicle that is 7 years old and has long been paid for. It costs me nothing and has 85k miles on it. Newer tires, new battery, etc. I drive it back and forth to work and would never sell it due to this crazy market. The radio stopped working...I bought a stock radio on ebay for $120 and took the 5 minutes to swap it with my old one. Good as new. I'm good for another 10 years. LOL I'd love to shop for a new vehicle, but not now!
 

7998

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Supply and demand. Right now dealers don't have crap on their lots and there are people out there that can't wait it out or need a new vehicle. The local Ford dealer by me is asking $10k over on Bronco's and I'm sure people are lining up to pay it. They said they would order me anything I wanted for $2k off msrp, except of course the Raptor, Bronco. and something else. Still not enough to entice me. I'll wait to things get reasonable again, and they will.

I doubt it'll go back to the days of 100's of unsold vehicles with huge incentives barring an economic crisis, but manufacturers want to sell cars. Some of those manufacturers will be hungrier than others. GM would love be #1 in truck sales again and so would Ram, meanwhile Toyota would like a piece of GM's, Ford's, and Ram's sales. It's inevitable, the tide will turn. Just like people panic bought toilet paper last year and over paid for it and now it's back to normal. That and the hundreds of other examples, $2,000 AR's, $50/oz silver, etc.

I'm glad for Nick and the other dealers, it's a boom market. I had mine for 3 years. Naming my prices and making money hand over fist but now it is receding and things are tightening back up.
 

13COBRA

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I've said it before but people who are paying msrp+ will be in for a treat when they're trying to unload these things in 3-4 years time. The intuitions who loaned them the money too...

Nope.


Pricing will NEVER return to what it was.
 

Bullitt1448

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Prices may not return to what they were pre pandemic/chip shortage but they will stabilize eventually, cars are not appreciating assets like houses/land.
 

13COBRA

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Prices may not return to what they were pre pandemic/chip shortage but they will stabilize eventually, cars are not appreciating assets like houses/land.

Correct.

Nah, they ALWAYS going to go up. They will NEVER depreciate.

No one said that. Just your infinite wisdom deducted that. Put up, or shut up.
 

ON D BIT

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Correct.



No one said that. Just your infinite wisdom deducted that. Put up, or shut up.
I’m thinking Nick is saying the days of 50%+ depreciation in 3 to 4 years after new purchase are gone.

The issue I have is that in CA it costs 10% in tax/title/doc fees on any new or used vehicle. Meaning that any vehicle purchased needs to appreciate at least 10% just to get all your money back. Haha
 

13COBRA

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I’m thinking Nick is saying the days of 50%+ depreciation in 3 to 4 years after new purchase are gone.

The issue I have is that in CA it costs 10% in tax/title/doc fees on any new or used vehicle. Meaning that any vehicle purchased needs to appreciate at least 10% just to get all your money back. Haha

I'm close to that. We pay 8.975%, plus personal property tax every year.

Time will tell but I can't see demand outpacing supply forever. Prices will stabilize. My current truck has been appreciating at a faster pace than my house. No way that will continue.

The days of manufacturers over producing only to over discount later, are over. They got a taste of the Koolaid and they like it.
 

Bullitt1448

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The current price increases/ADM’s are unsustainable . Sooner or later vehicles will be priced out of reach of the average consumer if they aren’t already. When they stop selling, the price comes down. I realize there are the few with very deep pockets that just have to have the latest and greatest but they are not going to sustain the market for very long.
 

13COBRA

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The current price increases/ADM’s are unsustainable . Sooner or later vehicles will be priced out of reach of the average consumer if they aren’t already. When they stop selling, the price comes down. I realize there are the few with very deep pockets that just have to have the latest and greatest but they are not going to sustain the market for very long.

Nah.

Financing terms will just keep extending like they have been.
 

Bullitt1448

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We are already seeing 96 month terms and a few 120 month terms for cars. 10 years to finance a deprecating unit is just crazy, but there are lots of stupid people out there. The only thing I have financed in the last couple of decades was my house till the last one sold, 10 year term would likely double the price of a car.
 

Morgan

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I think Tesla was operating with this type of model pre Covid- limited inventory and small retail footprint. Probably the new way of selling cars for everyone now.

I don’t imagine a wave of new cars flooding the market anytime soon. Huge inventory’s are a memory like $.99/g fuel.

Do you anticipate scaling down your lot size? You may own it, but there is a tax burden for the footage that’s not producing revenue.
 

GTSpartan

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Nah.

Financing terms will just keep extending like they have been.

We are already seeing 96 month terms and a few 120 month terms for cars. 10 years to finance a deprecating unit is just crazy, but there are lots of stupid people out there. The only thing I have financed in the last couple of decades was my house till the last one sold, 10 year term would likely double the price of a car.

Just like housing, the industry simply comes up with more creative ways to finance.

And like clock work, everything comes crashing downs and corrects. Temporarily of course. Rinse and repeat.
 

cobracide

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The car industry (except for a few notables like Tesla) got completely burned by their "just in time" chip inventory. Once chip production catches up, more than likely there will be an automotive glut. Then it will be time to buy again.
 

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