Car prices decreasing due to Hertz unloading vast number of cars

aja8888 said:
Has the cyber truck been built and tested yet? :confused:
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No, just the two prototypes as far as the public knows - production is not slated to begin until 2021.:cool:

I'm looking forward to this. The Model Y production was moved forward by almost a full year from it's originally announced date and is now in full production, at least at the Fremont plant. I would like it if this moves Cybertruck production forward but that might be too much to ask considering how revolutionary the engineering and design is compared to existing vehicles. If anything, I suspect the actual production might slip 6 months or so.
 
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pj.mask said:
Sorry to go back a few posts. I was curious about cybertruck vs tundra cost of ownership. I used model X consumption of 375wh/mi * 1.33 = 500wh/mi

Used www.edmunds.com cost to own page for the tundra.

Used 9 cents on electricity, more than my avg for the last 2 years.

If you assume tax, insurance, repairs, tax and fees, financing are the same, a Tesla would save me $13,095 in fuel and maintenance over 5 years.

The trucks are equivalently spec and the Tundra might be $5k cheaper if I negotiate off MSRP. No idea on resale (aka depreciation).
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Did you use the price of the single motor Cybertruck for this comparison? I suspect the Cybertruck will consume about 20% more electricity than even the Model X due to it's much larger size. It really is a full-sized pickup with a huge cabin for six large adults!

I know electricity is a minor component of the TCO but I'm wondering how the comparison would fare using 20% more electricity? My brother has a Dodge Ram 2500 used in his work. He drives a lot of miles and is compensated $0.60/mile by his boss. He told me a Cybertruck will turn into a revenue generator for him.
 
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Clone said:
Let's go a different direction-

Buying a car at a discount will allow you to put the savings into a variable annuity, which of course will allow you to claim SS at the optimum age of 64.7 years old, assuming that you invest with the proven best AA of 53-38-7-2. This is all predicated on not carrying a mortgage into retirement, and that you have a net worth of at least 2.37 million. Said net worth must include the net present value of SS at a discount rate of 6%, and using the agreed upon 18% haircut that will occur in 2035. Any pensions must also be included in the net worth calculation using a discount rate of 5.3%. You current house must not be included in the net worth calculation, but you can include the purchase cost of any alternative energy vehicles or improvements (because they will never decrease in value). Timeshares are still valued at 0.

Edited to add: And never retire in Texas because of the seismic activity.
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Excellent analysis! I don't see how anyone could disagree with anything you've stated! :popcorn:
 
Z3Dreamer said:
This article suggests that Hertz filing for bankruptcy and their cash needs may lower the prices of cars for sale. Article suggests a 5% to 15% savings over a used car dealer.

https://www.cnn.com/2020/05/24/business/buying-used-rental-cars/index.html
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In yet another example of how difficult it is to accurately predict the future...


Used car prices spiking as COVID-19 pandemic shakes up the market for new cars

Any hope the rental-car company Hertz's Chapter 11 bankruptcy filing this year would cause in a drop in used-car prices has diminished due to the overwhelming influence of COVID-19 on the market.
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RetiredAtThirty-eight said:
I'm sorry I didn't include any data - I didn't know the idea that an electric car would have a lower total cost of ownership would be a contentious topic!
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Costs are always contentious. Think about paper vs. plastic bags. Gasoline vs. diesel. Renting vs. owning. And the costs of taking SS at 62 vs. 70. Total costs including opportunity costs are rarely taken into account.

That said if I had money to burn, my first purchase would probably be a Tesla.
 
Yeah I like to kill time roaming around car lots. Several new car lots are nearly empty in my area. Normally the 2021 models would be starting to roll in but one salesman told me they don’t expect to see them until November.
 
REWahoo said:
In yet another example of how difficult it is to accurately predict the future...


Used car prices spiking as COVID-19 pandemic shakes up the market for new cars
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Amazing! I am so glad that F got his used car just before the pandemic. He had no choice about the timing of that purchase since his Murano gave up the ghost after almost 270K miles and was broken beyond any reasonable repair. But anyway, according to the article it sounds like waiting for those Hertz cars would not have been such a good move after all.
 
REWahoo said:
In yet another example of how difficult it is to accurately predict the future...
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I was getting my truck serviced the other day, and there was next to nothing in terms of new vehicles on the Ford lot. In hind sight, (lots of stimulus $ plus shut downs in production plus people buying instead of ride sharing) > (decrease in demand due to job loss and less miles driven during lock down).

A auto mechanic friend with a business who was worried about having to lay off help or go out of business in April now has more business than he can keep up with (people putting off service work during the lock down).

Looking forward, perhaps 2021 will be a much better year to buy a vehicle after production resumes and stimulus wears off?
 
Dw and I discussed it this week. While we would like to buy a car by the end of the year, with us not going anywhere there is no rush. We can be patient and avoid the higher insurance bill in the meantime.
 
A couple of days ago DH received an e-mail from our local Lexus dealer wanting to know if he wanted to sell them his 2017 Lexus. Unprecedented demand for used cars due to Covid, move from public to private transport and low interest rates.

Of course, lookie at these nice sparkling new Lexus' you could buy :LOL:.
 
Oh and the new cars for sale/lease were 2020 models, not 2021. In Costco the other day I was looking at their car offering and they were showcasing 2019 models!
 
Just bought a new car on Friday. Pick it up tomorrow.

The crazy thing is we expected to put down a deposit, and pick it up after we moved the cash around to pay for it.

No problem. Just give us a check for the full amount and we will wait for up to a week to cash it. Could have taken the car that day, but wanted them to have the time to properly prep it without sitting there for 2 more hours.

I am sure they ran credit checks and all, but I could have driven away in a car secured by a check they knew would bounce if they deposited it that day.

Crazy?

BTW, I will have the funds in the proper account by Tuesday or Wednesday.
 
CardsFan said:
Just bought a new car on Friday. Pick it up tomorrow.

The crazy thing is we expected to put down a deposit, and pick it up after we moved the cash around to pay for it.

No problem. Just give us a check for the full amount and we will wait for up to a week to cash it. Could have taken the car that day, but wanted them to have the time to properly prep it without sitting there for 2 more hours.

I am sure they ran credit checks and all, but I could have driven away in a car secured by a check they knew would bounce if they deposited it that day.

Crazy?

BTW, I will have the funds in the proper account by Tuesday or Wednesday.
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5 years ago when we went new car shopping we purposely left the checkbook at home. We decided on a new Acura and told the salesman we'd be back tomorrow with the check. No, no, no. Here's the car; bring in the check in the next day or 2 :D. They did run credit checks.
 
TrvlBug said:
5 years ago when we went new car shopping we purposely left the checkbook at home. We decided on a new Acura and told the salesman we'd be back tomorrow with the check. No, no, no. Here's the car; bring in the check in the next day or 2 :D. They did run credit checks.
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A sale is not a sale until you have their money! I am pretty sure sales folks are told to do whatever is necessary to avoid having a buying customer leave without the car.
 
nwsteve said:
A sale is not a sale until you have their money! I am pretty sure sales folks are told to do whatever is necessary to avoid having a buying customer leave without the car.
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DH and I just couldn't believe it though. We were trying to decide between 2 SUVs with the Acura having the better rear camera grids; the Lexus the better ride. We thought the decision would be harder and that we would want to sleep on it. We were quite annoyed with ourselves for not bringing the checkbook, but turned out not to be a problem. Otherwise we would be a 2 Lexus family!
 
nwsteve said:
A sale is not a sale until you have their money! I am pretty sure sales folks are told to do whatever is necessary to avoid having a buying customer leave without the car.
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Yeah, after I thought about it, if I leave a deposit check, I could always change my mind, put a stop payment on the check, and then not go go back.

If I did that with a full payment check, and have the title (which I do) then it would be criminal fraud. There may be a few who would do that, but not many.
 
Another example of what's happening with used car prices...

Three months ago I did some online research looking at the trade-in value of my 2015 Buick. The same sites now show the value has increased by almost 30%. Crazy.

BTW, I sold it to my DD & SIL last week for $3,000 less than Carvana offered me. They have a kid in HS and two in college and took advantage of the REW family discount policy. :)

We are now down to a two car family (OK, an SUV and pickup family) for the first time in many years.
 
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