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

[JettaKnight]

This has turned into quite the informative thread. Interesting perspectives.

Sorry for getting into mundane details - I guess it's obvious what my career is.

 

[bwframe]

Sorry for getting into mundane details - I guess it's obvious what my career is.

No no, that is very helpful good info also.

Ha, your career is posting stuff on INGO...

JK, my friend.

I was speaking more to the idea of what people's perspectives are on money invested and value.

To that line of thinking, I'll make a comment in jest (sort of.) Somewhat like what we see with firearms purchases, a lot of folks believe that they worked an unheard of great deal, whether that is actually the case or not. We all like to think that we chose to invest wisely. [SUB][/SUB]

 

[Crittersdad]

Amen,Brother

 

[BehindBlueI's]

Also once some people have accepted the fact that their car is probably going to be repod, they will trash them. My uncle found that out the hard way. He bought a repo that seemed like a great deal. Drove great when he test drove it, but once he got it home and took some long trips the engine would cut out. Came to find out that once the previous owner knew it was going to be repod they stuffed leaves, dirt, and all kinds of crap in the gas tank.

When I was shopping for my Camaro and test driving various sports cars I drove a Mustang that had a Repo on the title. The clutch peddle felt like the clutch had *very* little life left on it, despite the car being under 30k miles. That, to me, was a clue the car had been pushed hard and likely not maintained. Sports cars and motorcycles, previous owners matter quite a bit to me.

 

[Rusty Shackleford]

I'm not surprised used car/truck prices are high when a new plain jane 4x4 1500 Sierra is $35k, then I have to pay extra for options like "carpet" and "radio".

 

[Dean C.]

Personally I would like to know how Truck / SUV prices have skyrocketed (maybe because Trucks seem to just be man jewelery now IMHO).

I just bought my new Accord in July of last year and I got the 2.0 EX-L (just one step below be Touring which is top of the line) walked out with extended warranty and taxes for less than $32K , while a new Dodge 1500 BASE MODEL truck starts at $32K!?! I predict the big three will take a huge hit when gas prices go up and no one wants trucks / SUV's that get bad mileage

 

[indyjs]

With the way people drive and the uninsured problem, I am thinking impact protection more so than mpg.

 

[indyjs]

I just bought my new Accord in July of last year and I got the 2.0 EX-L (just one step below be Touring which is top of the line) walked out with extended warranty and taxes for less than $32K ,

But how do you like it ?
Inquiring minds want to know

 

[Dean C.]

I just bought my new Accord in July of last year and I got the 2.0 EX-L (just one step below be Touring which is top of the line) walked out with extended warranty and taxes for less than $32K ,

But how do you like it ?
Inquiring minds want to know

LOVE that car, its not a high performance sports car by any means but the 2.0 liter really makes it a fun car. Mine had some paint issues originally so I got a "loaner" Sport model with the 1.5 Liter and there is a big difference in terms of how the car handles between the two. Weird thing was I average 28MPG in my 2.0 and with the Sport 1.5 best I could average was 31MPG so no really major difference MPG wise. Though I will say it is worth it to get the EX-L as the leather , way better sound system and remote start make it worth the extra cash IMHO. Plus most dealers will cut you a deal on the 2.0 since 90% of the people who buy the Accord just get the base model 1.5

Hope that helps , if you can't tell I am a big fan

 

[indygunguy]

Speaking of Accords, I'm currently driving my favorite car ever. It's an Accord Crosstour, 4 wheel drive, with a V6. It's got all the options on the interior (heated letather seats, etc). This is the best handling car I've ever driven in the snow and ice (including better than the 4runners and 4x4 pickups I used to drive), and the 270hp 3.5L V6 actually makes it feel pretty sporty.

Add to that an actual cargo area in the back, and the backseats fold down flat (for dogs, gear, etc) and this is the perfect car for me.

I think I paid $13k for this car when it had under 70,000 miles on it. I expect it to run forever like my previous Hondas have.

 

[Dean C.]

Speaking of Accords, I'm currently driving my favorite car ever. It's an Accord Crosstour, 4 wheel drive, with a V6. It's got all the options on the interior (heated letather seats, etc). This is the best handling car I've ever driven in the snow and ice (including better than the 4runners and 4x4 pickups I used to drive), and the 270hp 3.5L V6 actually makes it feel pretty sporty.

Add to that that an actual cargo area in the back, and the backseats fold down flat (for dogs, gear, etc) and this is the perfect car for me.

I think I paid $13k for this car when it had 70,000 miles on it. I expect it to run forever like my previous Hondas have.

Not going to lie of they still made the crosstour when I bought my Accord that would have been what I purchased. But wanting a new car with a warranty was my primary concern going from my old beat to hell College days 2000 Chevy Cavalier with 180,000 on it to the Accord was a huge jump for me

 

[JettaKnight]

I'm not surprised used car/truck prices are high when a new plain jane 4x4 1500 Sierra is $35k, then I have to pay extra for options like "carpet" and "radio".

Who buys a truck with carpet?


It ain't one of them fancy goat roper trucks is it?

 

[ATOMonkey]

Personally I would like to know how Truck / SUV prices have skyrocketed (maybe because Trucks seem to just be man jewelery now IMHO).

I just bought my new Accord in July of last year and I got the 2.0 EX-L (just one step below be Touring which is top of the line) walked out with extended warranty and taxes for less than $32K , while a new Dodge 1500 BASE MODEL truck starts at $32K!?! I predict the big three will take a huge hit when gas prices go up and no one wants trucks / SUV's that get bad mileage

Cheap money. Same reason college prices have skyrocketed.

It used to be really expensive to finance a car, and you didn't always get the loan, and never without a down payment. Now you can get 0% for 7 years, 0 down, and pretty much everyone is eligible. That allows prices to increase.

 

[JettaKnight]

Cheap money. Same reason college prices have skyrocketed.

It used to be really expensive to finance a car, and you didn't always get the loan, and never without a down payment. Now you can get 0% for 7 years, 0 down, and pretty much everyone is eligible. That allows prices to increase.

Sadly, I think you're right.

 

[Brad69]

Notice to all INGO members !

Never buy a used car from me!

I normally trade race them in before 10,000 miles.

 

[BehindBlueI's]

Personally I would like to know how Truck / SUV prices have skyrocketed (maybe because Trucks seem to just be man jewelery now IMHO).

Good ol' supply/demand. Pickups are higher margin sales for the manufacturers, so it's little wonder they love to cater to the current consumer preference. 69% of new vehicle sales last year were classified as "light trucks", meaning pickups or SUVs. Just like van sales started really dying in the early 2000s, sedan sales are dying now. Manufacturers still have sunk costs in the production lines for sedans, and while they are phasing them out they are (mostly) still making them.

I suspect folks who predict a market swing when gas prices rise again are correct. When gas gets to that point again is the tricky part, and car manufacturers have to sell today's vehicles to today's buyers.

 

[FWP9MM]

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.

And thus the answer to the question, because banks will lend money for these purchases for 7 years at relatively low interest rates. If the banks weren’t lending money or interest rates were significantly higher, prices would naturally come down as no one would be buying. Higher initial purchase price generally means higher price on the used market.

I refuse use to have car payments, but I can also fix things when they break. This has saved a ton of money over the years and is a skill that I hope to pass on to my kids.

 

[Hohn]

Speaking of Accords, I'm currently driving my favorite car ever. It's an Accord Crosstour, 4 wheel drive, with a V6. It's got all the options on the interior (heated letather seats, etc). This is the best handling car I've ever driven in the snow and ice (including better than the 4runners and 4x4 pickups I used to drive), and the 270hp 3.5L V6 actually makes it feel pretty sporty.

Add to that an actual cargo area in the back, and the backseats fold down flat (for dogs, gear, etc) and this is the perfect car for me.

I think I paid $13k for this car when it had under 70,000 miles on it. I expect it to run forever like my previous Hondas have.

I’m stunned that the Venza and Crosstour didn’t catch on and are both now discontinued.

 

[BugI02]

Good ol' supply/demand. Pickups are higher margin sales for the manufacturers, so it's little wonder they love to cater to the current consumer preference. 69% of new vehicle sales last year were classified as "light trucks", meaning pickups or SUVs. Just like van sales started really dying in the early 2000s, sedan sales are dying now. Manufacturers still have sunk costs in the production lines for sedans, and while they are phasing them out they are (mostly) still making them.

I suspect folks who predict a market swing when gas prices rise again are correct. When gas gets to that point again is the tricky part, and car manufacturers have to sell today's vehicles to today's buyers.

This^^^ 6ish years ago, I was told by someone in a position to know (design engineer) that it cost Ford between $18k and $20k to make either a Taurus or a Navigator. The Taurus typically sold for $24k to $27K and the Navigator sold for well north of $50k. Which one do you think Ford would rather produce and your dealer would rather stock

 

[BugI02]

With the way people drive and the uninsured problem, I am thinking impact protection more so than mpg.

My opinion also. A number of folks with kids I know have what we call a 'mommy tank'. The problem I see is development of a more careless and cavalier driving attitude, kind of 'We'll survive any accident I cause'

They would make good bug-out vehicles, though