Crazy car inflation! Boats Too!

OKnewguy · Jul 27, 2013

I aggree with Craigslist being problematic to say the list. I think the hay-day for it was 3-4 years ago before it got to popular and over run with spam and slimey dealers that list bogus ads. The problem is that there really is nothing else anymore. Classified ads are basically gone, the Autotrader is so small now compared to CL. CL does still work but takes a lot more work. I studied CL for about a month before we put our boat up on the market. I only base CL research on the items that are selling.
CASH FOR CLUNKERS did seem to coincide with the start of this inflation. Shortly after cash for clunkers we got our daughter her first car, we were expecting to pay around 3-4k for a decent little Civic or Corolla, these cars were all in the 5k+ range. We got a PT cruiser for her instead. We really debated going older Japanese or newer American. I still am not sure if we made the right choice on that.
In the grand scheme of things here, the car market seems to of had inflation of 30-40% over the last 5 years or so. It is really strange to see vehicles increase in value while they are getting older and accumulating more mileage.
Dave

Larro Darro · Jul 27, 2013

I'm shopping for a used 13 Camry right now. A friend of mine is a dealer, and he sends me pictures of cars offered online. You have 48 hours from their posting, then they are sold at auction locally. Shipping from across the country is only three or four hundred dollars. So far the best deals has been two LE's with 12K miles for $23K. But I'm looking for a little more savings than that. I use the cars sold on craigslist as a price point.

Midniteoyl · Jul 27, 2013

Was at the fair the other day and they had a 2013 Journey at the same price as used ones with 20K+ miles..

CliffordK · Jul 27, 2013

There are occasional vehicles that get a special interest, and hold their values. Several years ago, my grandmother was happy when she sold their scout (probably 10 or 15 years old at the time) for the price they paid for it new.

New price inflation will certainly also affect the used vehicle prices.

Anyway, with the KBB, they list several different values. "Private Party" value, "Dealer Value", Trade-in Value... etc. It is probably more appropriate to look at the trade-in value than other values, at least if you are thinking of buying. But there are a number of factors that might go into the end value including the condition, options such as winches, etc.

300UGUY · Jul 27, 2013

Another factor is that auto sales declined by huge amounts in 2007, 08,09, and really didn't get back on track until 2010. Even now, sales are less that 05 or 06. So there are fewer used cars to buy, and new ones have gotten more expensive. I assume the same thing happened to boats. We are still dealing with the fallout of the crash of 08, the worst financial disruption since the 30's.

Gale Hawkins · Jul 27, 2013

CliffordK said:
There are occasional vehicles that get a special interest, and hold their values. Several years ago, my grandmother was happy when she sold their scout (probably 10 or 15 years old at the time) for the price they paid for it new.

New price inflation will certainly also affect the used vehicle prices.

Anyway, with the KBB, they list several different values. "Private Party" value, "Dealer Value", Trade-in Value... etc. It is probably more appropriate to look at the trade-in value than other values, at least if you are thinking of buying. But there are a number of factors that might go into the end value including the condition, options such as winches, etc.

Yes the trade-in value is the one with a touch of reality. It is not easy today like years ago but by looking hard cars can be had at or near the trade-in range in my personal experience but 2011 was the last time I bought a road vehicle. Did get the ATV as dealer trade-in valve when the guy went from $2200 to $1500 after their baby arrived but we did not see the ad until it was down to $1500.

If you want new like used to your exact specs today the piper will demand top dollar.

NoTrespassing · Jul 27, 2013

Larro Darro said:
I'm shopping for a used 13 Camry right now. A friend of mine is a dealer, and he sends me pictures of cars offered online. You have 48 hours from their posting, then they are sold at auction locally. Shipping from across the country is only three or four hundred dollars. So far the best deals has been two LE's with 12K miles for $23K. But I'm looking for a little more savings than that. I use the cars sold on craigslist as a price point.

2013 Toyota Camry LE, 4 cylinder, automatic, air, 2012 Camry's now get 35 mpg highway, telescoping tilt wheel, bluetooth, cruise control, power windows, power locks, power seat (many 2012 LE's no longer have a power seat), AM/FM/CD/MP3 with Ipod jack and USB port, blue tooth, outside temperature gauge, side air curtains, side air bags, ABS, vehicle stability control, radio controls on steering wheel, touch screen dash stereo controls, 5 passenger mid size sedan, Cosmic Gray Mica (looks gray normally, but in the sunlight the mica shows blue and green) with Gray cloth interior, 2,414 miles with remainder of bumper to bumper warranty from Toyota, $17,700.

This is an add from a local dealer in Indiana that I've shopped at. He seems pretty honest. PM me if you want a link.

Kevin

The kid · Jul 30, 2013

Real deals are made this day and time for the price of your trade in. Dealers try to buy your car at wholesale prices and sale them at retail. If you have access to the Black Book numbers which most credit unions will give you. It will give you some idea of negotiations as to meeting the goal of "good deal". In many cases, one is better off to sell their old ride "private party" than take a beating trying to trade it in. You also need to know when to walk away from a deal when the sales manager is playing games. -kid

OKnewguy · Jul 30, 2013

The Kid, I agree 100%! I have never traded a vehicle in. I sell all my vehicles myself. I used to use the newspaper, then Autotrader, and for the last 5 years or so I have used Craigslist. I never understood people that trade in vehicles, you can easily make thousands of dollars by selling it yourself. Even if you need it gone quick, price it that way and you will still make more then what a dealer will give for a trade.
Dave

Gale Hawkins · Jul 30, 2013

You have to remember for a dealer to take in a nice/newer trade can be a huge cash flow headache since they have to pay in total at once for the new vehicle you pick up.

If they sell 10 new vehicles a week for $30K that cost them $25K and they give $15K on trade-in that is a negative $100K cash flow for that week. That is a stack of 1000 $100 bills. This is why they can only give you 60-70% of wholesale value.

The better sales people will have your vehicle sold before you close the deal on the new vehicle. If they know what they are getting out of your vehicle they can lower the price of a new vehicle. When there is no trade they do not have this headache. They like to make the money reselling your used vehicle and if it is sharp and they can gross $3-5K in may be as good to the bottom line as selling two new vehicles.

Cash-Flow rules in the end.