Are used car prices coming down?

[Z3Dreamer]

Have seen a few articles. I check on Autotrader, Carmax and a few dealership sites. Don't see decreased prices, but I don't know that I could tell if there was a glut or if prices are coming down. A few comments suggest the opposite: Because new car production and sales are tanking, used cars are in demand, so prices will go higher.

Here is a quote from the link: "As if things were not already dreary for the sector, the prices of used car have now started to crater. Weak demand, unusually timed off-lease inventory and lower auction prices are resulting in a drop in used car values. Incentives from automakers for new vehicles in response to the coronavirus crisis will further depress the prices of off-lease used vehicles."


https://finance.yahoo.com/news/used-car-market-headed-bloodbath-140702891.html

What are you seeing?

 

[Montecfo]

Auto demand at all levels is in the tank. Auction prices coming down for used. Used dealers very negotiable, especially independent dealers.

 

[Chuckanut]

Apparently, used car prices are coming down. If you feel secure spending the money, the deal are there from what I have read.

Among other things a lot of leased cars are coming of their lease and nobody wants them. I can't help but think that rental car companies might also be raising some cash by selling off their fleet, but that is just a guess on my part.

 

[brewer12345]

I have been casually watching late model Ford edge SUVs on the echo Park website, as they are a no haggle chain. Since January I would say prices are off 10 to 12 percent.

 

[ShokWaveRider]

I would like to expand this question for New Cars too. One would expect that if the production is down, supply may be limited so prices may be holding.

 

[GravitySucks]

They are going down, but I think it's the tip of the iceburg. An FJ Cruiser I had my eye on is still on the lot and is now priced 10% less than it was in March. I'm waiting another month as these are mostly toy vehicles.
There was a story on TV about dealerships refusing to take cars back from lease. I think you're going to see great deals on 2018 models coming off lease in May/June.

 

[brewer12345]

I would like to expand this question for New Cars too. One would expect that if the production is down, supply may be limited so prices may be holding.

Considering I am seeing ads for manufacturer financing of 0 percent and no payments for 120 days, prices must be down a good chunk.

I have my heart set on a 2018 off lease.

 

[ShokWaveRider]

Considering I am seeing ads for manufacturer financing of 0 percent and no payments for 120 days, prices must be down a good chunk.

I have my heart set on a 2018 off lease.

I do not need financing, we lease, but I get your point.

Be careful where you get your "Off Lease" vehicle. "https://www.offleaseonly.com/" only has cars that were damaged, please check the Carfax before you buy any used car, not that I need to remind you.

 

[brewer12345]

I do not need financing, we lease, but I get your point.

Be careful where you get your "Off Lease" vehicle. "https://www.offleaseonly.com/" only has cars that were damaged, please check the Carfax before you buy any used car, not that I need to remind you.

I would insist on a clean Carfax and an inspection.

 

[REWahoo]

Here is a follow up to this thread from late April. Looks like the forecast decline in used car prices didn't amount to much.

You May Want to Hold Off on Buying a Used Car (probably behind a paywall at Consumer Reports)

...although forecasters had predicted falling used car prices this summer as rental car fleet reductions and lease returns flooded the market, an alternate reality took shape.

"What we're seeing right now is that demand is so high, there isn't excess inventory of pre-owned cars..

 

[brewer12345]

We will see. Hertz tried a novel maneuver in bankruptcy court. I do not expect it to succeed, but it did somewhat delay the liquidation of half a million cars.

 

[aja8888]

We will see. Hertz tried a novel maneuver in bankruptcy court. I do not expect it to succeed, but it did somewhat delay the liquidation of half a million cars.

You may want to keep an eye on Enterprise Auto Sales locations. Not all cars there come from day to day rental fleets. We picked up a 2019 Dodge Grand Caravan with 17K miles on it last year and it was a fleet lease turn in from a company lease. It was immaculate and was about $14K off MSRP. Plus a Carfax was included and a one year/12K mile full warranty on top of the remainder of the factory one.

Plus, the van has every available option.

Be a little leery of EcoPark cars as they buy what dealers get as turn ins and really don't want (or can't sell) on their lots. As mentioned above, get a Carfax if you are going to deal with them. We looked there too, and saw some vans that were not even cleaned up and had multiple brands of tires on the vehicle. Apparently, they don't do much in the way of making sure the cars they get are thoroughly inspected and brought up to desired condition for a "no haggle" price.

 

[brewer12345]

You may want to keep an eye on Enterprise Auto Sales locations. Not all cars there come from day to day rental fleets. We picked up a 2019 Dodge Grand Caravan with 17K miles on it last year and it was a fleet lease turn in from a company lease. It was immaculate and was about $14K off MSRP. Plus a Carfax was included and a one year/12K mile full warranty on top of the remainder of the factory one.

Plus, the van has every available option.

Be a little leery of EcoPark cars as they buy what dealers get as turn ins and really don't want (or can't sell) on their lots. As mentioned above, get a Carfax if you are going to deal with them. We looked there too, and saw some vans that were not even cleaned up and had multiple brands of tires on the vehicle. Apparently, they don't do much in the way of making sure the cars they get are thoroughly inspected and brought up to desired condition for a "no haggle" price.

Yeah, I am not set on any one seller and I might just decide to hire a broker to do the legwork. If I do it myself, I will be taking any prospect to my mechanic for an inspection before I buy.

 

[aja8888]

Yeah, I am not set on any one seller and I might just decide to hire a broker to do the legwork. If I do it myself, I will be taking any prospect to my mechanic for an inspection before I buy.

Good idea. One thing about Enterprise is that you can keep the car for up to a week and 1,000 miles and give it back if you change your mind. The fee is $200 for that use.

 

[ExFlyBoy5]

My DW recently sold her 2012 Highlander through Carvana. She got two quotes, about a week apart. The second quote was about $500-600 more than the first (don't recall exact amount). They don't have much availability of most of the popular cars. Just for grins, I punched in my 2018 F-150 and the price they gave me was only about $1200 less than I paid for it TWO YEARS ago. So, I would say that today is NOT the best time to buy a car.

 

[JoeWras]

Whenever stuff like this gets talked about, it seems to alert too many people to "good deals" and it screws up the market. The exception would be if the whole car market craters in a massive way for a very long time. That may still happen, but the results of that are going to take time to play out.