Why are used cars so expensive right now?

Had my 2017 car serviced a few months back at the dealership. A week or so later I get a letter from the dealership offering a ridiculous amount of money for it, more than I paid.

When I called and asked why they said there not many 4x4 full sized SUVs available and their customers wanted them.

The ridiculous trade-in offer plus some deep rebates and I ended up in a new car. I was prepared to pay cash but they had a 0% interest offer so I did that.

The new Level-2 autopilots are life changing.
 
S2007S said:
Chip shortages are driving used and new car prices to historical levels. If you heard the stories of what consumers are paying for used cars you would be baffled. In some cases some used cars are selling for more than the same exact new car. The entire car Industry has never witnessed anything like this before. On average a new car depreciates about 10% once driven off the lot. They are now saying it's approximately 3%.

They have no clue how long this will last. Some say for another year or 2 but it won't last forever. As you can see everything is bubbling, every market is out of whack due to the pandemic and the fed printing. Eventually there will be a gigantic collapse but for now don't be the fool who is going to over pay for a car and a house!!!
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I have a friend that bought his first ever used car as a gift to his wife for 23k about 7 months ago.

They sold it last week for 25k...a 2k profit. They recently bought two more used cars for 15k apiece and plan to sell both at a profit of a few thousand dollars each.
  • What the Fuck !!!
I have never heard of any crazy stuff like that involving automobiles. To me...they're flipping cars like in the recent past of what people were doing in hot real estate markets. Yeah, if you're wondering...they flipped houses many years ago for about 700k profit.

P.S. I wonder at what point would they need to get a used car dealer license ???

:D

wrbtrader
 
Snarkhund said:
Had my 2017 car serviced a few months back at the dealership. A week or so later I get a letter from the dealership offering a ridiculous amount of money for it, more than I paid.

When I called and asked why they said there not many 4x4 full sized SUVs available and their customers wanted them.

The ridiculous trade-in offer plus some deep rebates and I ended up in a new car. I was prepared to pay cash but they had a 0% interest offer so I did that.

The new Level-2 autopilots are life changing.
More...

I listed my very-used ML320 on Craigslist a few months ago, unaware of the market in good 4-wheel drive SUVs. The response was just crazy, and the first buyer pulled out a wad of cash and said, "Here's an extra 20% if you let me have it right now."

Um. Well. Okay.
 
lindq said:
I listed my very-used ML320 on Craigslist a few months ago, unaware of the market in good 4-wheel drive SUVs. The response was just crazy, and the first buyer pulled out a wad of cash and said, "Here's an extra 20% if you let me have it right now."

Um. Well. Okay.
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Yeah its wild isn't it? Did you replace it with something else?
 
I'm so glad I got a reliable car before pandemic made the market volatile. I will not need another car for another 10 years+. I hope the market stabilizes and maybe even make EV more practical and affordable by then heh heh
 
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Cheaper than paying house rent.
 
S2007S said:
As you can see everything is bubbling, every market is out of whack due to the pandemic and the fed printing.
More...

Printing is controlled by Congress, not the fed! The Treasury must spend as the Congress dictates. When the Treasury spends in deficit, an overdraft in its account at the fed results. The fed always covers this overdraft, which is the "printing" you refer to. The fed, however, has no choice, and neither does the Treasury. It is the Congress that directs the spending that ultimately results in "printing".
 
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