Here's Why Buying a Used Car is So Expensive in the United States

[churchmouse]

And my guess is they're all A) rusted out, B) have at least 250k on the clock, or C) two wheel drive (not as important to some as it is to me) or some combination of the three. I remember a few years ago I was a teenager looking for a truck and was finding 4x4 88-98 Silverados for $1500-$2500 all day long in pretty good shape, now you find those same trucks with more rust and more mileage going for $4000 or more.

Here is the thing. With a new truck optioned comfortably in $WD you are looking at $45K easy. I did not give that for any of my 1st 3 houses.
I have 2 trucks both 04's. Bought used. Pickup has 145K on the clock and the van has 115K. I work out of the pick up. I intend to work that truck until it is done. It has a wee bit of rust showing here and there but you have to look for it. Was thinking of upgrading this year but at the current prices we will keep rolling what we have. Most folks are doing this these days. Run them until you can see through them. Sell it to a Hispanic and he will tape/wire it up and get another 100K out of it.

People are taking out 7 year "Mortgages" on new trucks. So right now looking at a 2013 they may still owe on it.

 

[BehindBlueI's]

And my guess is they're all A) rusted out, B) have at least 250k on the clock, or C) two wheel drive (not as important to some as it is to me) or some combination of the three. I remember a few years ago I was a teenager looking for a truck and was finding 4x4 88-98 Silverados for $1500-$2500 all day long in pretty good shape, now you find those same trucks with more rust and more mileage going for $4000 or more.

Why don't you look instead of guess?

 

[mmpsteve]

Here is the thing. With a new truck optioned comfortably in $WD you are looking at $45K easy. I did not give that for any of my 1st 3 houses.
I have 2 trucks both 04's. Bought used. Pickup has 145K on the clock and the van has 115K. I work out of the pick up. I intend to work that truck until it is done. It has a wee bit of rust showing here and there but you have to look for it. Was thinking of upgrading this year but at the current prices we will keep rolling what we have. Most folks are doing this these days. Run them until you can see through them. Sell it to a Hispanic and he will tape/wire it up and get another 100K out of it.

People are taking out 7 year "Mortgages" on new trucks. So right now looking at a 2013 they may still owe on it.

When I was looking in 2016, I was shellshocked at American prices. I had bought new '88 Ranger, '96 F250, '98 Explorer, 2009 Ranger, 2012 Ranger. I looked at all the offerings; wanted a midsize truck. Ended up with a Nissan at 30k instead of American at 40k. Of course Ford discontinued the Ranger, which I'd driven since 88, or I would have bought that. American companies, combined with the unions, are squeezing me out of their market.

Good luck to them.

.

 

[2Lucky]

Duck tape that guys hands together and I bet he couldnt say a word! LOL

 

[rvb]

Kittyslayer is correct. Cash for clunkers screwed us all big time. We may not see any reasonably priced pickups and SUV's ever again (that aren't used up twice over anyway.)
We need to remember this for upcoming elections...

cash for clunkers was a blip. that program ended what, 9-10 yrs ago?
I traded into a new truck about a year after the program ended.... made a killing on my 10 yr old truck due to the supply shortage "cash for clunkers" created. I'd think today you'd have to be in the market for 20 yr old vehicles to see ANY affect from that program...

It was a bad program, IMO. But it was also a blip.

there may be a couple of similar state programs still on-going, eg CA, that could possibly have some impact on the market.

-rvb

 

[mmpsteve]

Duck tape that guys hands together and I bet he couldnt say a word! LOL

Care to expound on that? Don't know if it was targeted to me or not.

.

 

[Ingomike]

When I was looking in 2016, I was shellshocked at American prices. I had bought new '88 Ranger, '96 F250, '98 Explorer, 2009 Ranger, 2012 Ranger. I looked at all the offerings; wanted a midsize truck. Ended up with a Nissan at 30k instead of American at 40k. Of course Ford discontinued the Ranger, which I'd driven since 88, or I would have bought that. American companies, combined with the unions, are squeezing me out of their market.

Good luck to them.

.

While my old Suburban was being repaired the dealer gave me a new Suburban, it was loaded, and $75,000. It is a rolling computer with everything electronically controlled, meaning software will get old, it have a hard time believing that they will last 300k like many older trucks.

MM

 

[BehindBlueI's]

But have you seen them run yet? Looked at the undercarriages?



Kittyslayer is correct. Cash for clunkers screwed us all big time. We may not see any reasonably priced pickups and SUV's ever again (that aren't used up twice over anyway.)
We need to remember this for upcoming elections...

I had zero trouble buying a mid 70's long bed GMC after cash for clunkers when I needed a farm truck. Within a week I test drove 3, and bought the 3/4 ton with AC for about $1200 then put about $300 into it. I had no trouble selling it here on INGO when I didn't need it any longer. Again, if you can't find a used truck you don't know how to look for one.

Every pickup taken off the road via Cash for Clunkers totals about 1/6th to 1/5th of what Americans buy new every year. Not a significant enough amount to drive prices, especially 10 years later.

 

[indygunguy]

Care to expound on that? Don't know if it was targeted to me or not.

.

I think he's saying the guy in the video talks with his hands. Lots of gestures.

 

[HoughMade]

I had zero trouble buying a mid 70's long bed GMC after cash for clunkers when I needed a farm truck. Within a week I test drove 3, and bought the 3/4 ton with AC for about $1200 then put about $300 into it. I had no trouble selling it here on INGO when I didn't need it any longer. Again, if you can't find a used truck you don't know how to look for one.

Every pickup taken off the road via Cash for Clunkers totals about 1/6th to 1/5th of what Americans buy new every year. Not a significant enough amount to drive prices, especially 10 years later.

Agreed.

I think Scotty is probably right about the used care "pricing guides" being skewed to favor the sellers now that the companies producing them are owened by sellers.

Also, cars are more useful for longer. 25 years ago, a 100,000 mile car was pretty well used up. Now, a 100,000 mile car probably has another 100,000 miles in it. For some cars, 150,000-200,000. Don't we think that this will affect used car prices?

Thanks to all of you who buy new vehicles and trade often. My bank account account appreciates you taking the biggest depreciation hit. I am perfectly content buying vehicles with 20,000 to 30,000 miles and driving them for another 100,00 to 150,000 miles.

 

[Leadeye]

Newer vehicles do last longer. While I'm a fan of 1960s car design, like Hough said, 100K and it's pretty much gone. My biggest beef with new cars is all the extra stuff I don't want or need that I can't get away from because of how it's tied into packages and regulations. Looking at Dodge and Ford as I don't really need the CTD any more, things like the stop/start and odd packages is keeping me away from Dodge.

 

[Ruffnek]

Also, cars are more useful for longer. 25 years ago, a 100,000 mile car was pretty well used up. Now, a 100,000 mile car probably has another 100,000 miles in it. For some cars, 150,000-200,000. Don't we think that this will affect used car prices?

This is the part I have such a hard time with. When I first got interested in vehicles, back in high school, 175k on the clock was "high mileage". If I was driving a vehicle with 200k or more, I wanted to know that I (or someone I trusted very well) had put most of them on there and maintained it well.

 

[Ruffnek]

Here is the thing. With a new truck optioned comfortably in $WD you are looking at $45K easy. I did not give that for any of my 1st 3 houses.
I have 2 trucks both 04's. Bought used. Pickup has 145K on the clock and the van has 115K. I work out of the pick up. I intend to work that truck until it is done. It has a wee bit of rust showing here and there but you have to look for it. Was thinking of upgrading this year but at the current prices we will keep rolling what we have. Most folks are doing this these days. Run them until you can see through them. Sell it to a Hispanic and he will tape/wire it up and get another 100K out of it.

People are taking out 7 year "Mortgages" on new trucks. So right now looking at a 2013 they may still owe on it.

Agreed. If/when I'm ready for another truck, it won't come from a dealer and possibly won't come from this century. I just can't afford what they want for a 4wd base model. Don't even get me started on my hatred for V6s in a full size truck or SUV.

Why don't you look instead of guess?

I do now and then, when I'm bored. I'm not in the market anymore and I usually stay off Crigslist.

 

[JettaKnight]

While my old Suburban was being repaired the dealer gave me a new Suburban, it was loaded, and $75,000. It is a rolling computer with everything electronically controlled, meaning software will get old, have a hard time believing that they will last 300k like many older trucks.

MM

LOLWUT?


"software" doesn't age, it doesn't wear out, it doesn't rust, it doesn't need lubricant...


All this software and computer control is part of the reason cars last longer. I can't begin to imagine how complicated a carburetor and distributor cap would need to be to match a modern ECU.

 

[ATOMonkey]

Agreed.

I think Scotty is probably right about the used care "pricing guides" being skewed to favor the sellers now that the companies producing them are owened by sellers.

Also, cars are more useful for longer. 25 years ago, a 100,000 mile car was pretty well used up. Now, a 100,000 mile car probably has another 100,000 miles in it. For some cars, 150,000-200,000. Don't we think that this will affect used car prices?

Thanks to all of you who buy new vehicles and trade often. My bank account account appreciates you taking the biggest depreciation hit. I am perfectly content buying vehicles with 20,000 to 30,000 miles and driving them for another 100,00 to 150,000 miles.

I wanted to do this for our van that we bought about 4 years ago. When I went to the dealership, they offered so many incentives to buy new, that I couldn't say no. I think we paid $23 out the door for a new van and a used one with low miles was in the $19-$20 range. Plus the new vehicle came with 0% interest and a used car was going to be about 7%.

 

[HoughMade]

I wanted to do this for our van that we bought about 4 years ago. When I went to the dealership, they offered so many incentives to buy new, that I couldn't say no. I think we paid $23 out the door for a new van and a used one with low miles was in the $19-$20 range. Plus the new vehicle came with 0% interest and a used car was going to be about 7%.

In that situation, I see why you bought. Seems like a good deal.

Paying cash changes that analysis a bit.

 

[ATOMonkey]

Fun history fact, Henry Ford was strongly against a second hand car market.

 

[Hohn]

I was just going to post something like that but you beat me to it. He's a smart mechanic and has simple ways of diagnosing a problem. He is loud though.

I'm certain he's related to Matthew Lesko. You might remember him from his infomercials:

 

[HoughMade]

Fun history fact, Henry Ford was strongly against a second hand car market.

Um....I'm not shocked.

 

[Hohn]

Ah, the old supply demand thingy. Our beef is that supply has been and is artificially altered by the clunkers and export to a point that prices are too high.

MM

Used car prices are driven by new car prices. If you want to complain about why used cars have gotten so expensive, it's because people are paying absurd amounts for new vehicles. $90k for a Yukon. $75k for a Ram HD. It's mostly the truck/SUV thing that's gotten stupid. By comparison, a new Accord at $30k looks positively like a steal.