Who knew???

[rkeith]

I share my driveway with a used car lot. I was driving by yesterday, waved and struck up a conversation with one of the owners. He was saying that they only sold ONE vehicle last month but need to sell 5-6 per month to make it. They finance and even offer a 0% interest rate with no finance charge. Then he says that his vehicles cost too much and he's forced to pass that to his customers! Here's what he said...

The "cash for clunckers" is killing his used car lot. He said they are having to pay higher than wholesale prices AT wholesale because the # of used vehicles has dropped due to the "cash for clunckers" being crushed or salvaged. This in turn has driven prices up on used cars for both dealer and consumers. The used vehicles now are more gas efficient than the old ones. He then says what hurts him could help me (I told him I need to get a truck)! He said dealers are giving top dollar for used vehicles now because customers are buying them to get better MPG and couple that with you buying a new vehicle it's a win-win for the customer. He said the new car dealers can't hardly keep used vehicles on the lot now because of the sortage caused by the "cash for clunckers" and added that people are buying used vehicles for better MPG.

I never thought about it that way but after thinking about it I think he could be right.

 

[dusty3030]

Cash for clunkers only sold 690,000 cars.
Total used car sales for a year in US is around 37 million.

Cash for clunkers did nothing to the availability of used cars at wholesale. The higher prices for used cars, especially cheaper used cars is part of a cycle that hits when the economy goes South. People keep their cars longer and when they do buy they shop for a cheaper unit hence higher demand for used cars. The average age of a vehicle on the road is increasing due to people keeping their cars, if they aren't trading in, supply of used cars gets pinched and prices of used cars goes up.

If a used car dealer isn't selling cars right now they aren't buying the right cars to sell.

 

[MF 1532]

I wondered about that when they did '' cash for clunkers '' . They took a link out of the chain . Meaning I buy a brand new vehicle , somebody is waiting for my trade , and on down the line . The person at the end of the chain now has less selection for what his budget can stand . I have a customer that participates in the local demolition derby , and he said it is getting harder to find the cars ? He said cash for clunkers and the scrap market high , has cleaned up the oldies .

 

[beppington]

So you're saying the Nissan offer I got in the mail might not have been lying :shocked: when it said that they want my '05 Titan because of a shortage of used cars?

Or are trucks a whole different story?

 

[forgeblast]

We are getting a lot from vw. People are looking for used, because they are cheaper. I went with a three year lease we didnt want the longer payment, and we could not afford a truck right now so i went with the lease. I figured in 3 years, we would have no more day care bills, and two other loans would be paid off. it didnt make sense for me to carry a 5 year loan on a car i didnt really want. but on the lots there were not as many used, because people are repairing instead of replacing. I didnt see the benifit of repairing a 2000 chevy malibu that had a lot of front end damage, we just donated it to our local career and technical center.

 

[Ken]

Since Ford quit the Mercury line of vehicles and our family car is getting older. Stopped by a Ford dealer ship to look. The Tauris 35/38K and they had a used 2011 with 4K miles for 28K and it has everything Ford can attach. More radio do hickeys than I could understand.
But the fuel mileage 23/27.5 miles per gal. My LS Marque mercury does this so told him when it wears out and dies will come back in .
So will stay with the old style rear drive smooth riding decent fuel milage vehicle.
The new cars the roof is to low head maybe 1/2 " from hitting. seats are smaller. the transmission console takes up most of the front seat area.
Told the salesman maybe get a 6' test driver and enginner to design comfortable interier.

When I go to the local salvage yard there is all kinds of fairly new cars. junked wrecked or driver forget that engines need oil. Cheaper to trade than fix.

My salvage yard looking is for old tractor parts. 10 cents a pound is less than e bay.
same source sometimes.
ken

 

[rkeith]

The dealers near me are on TV PROMISING top dollar for your trade! I need a truck but just can't bring myself to do it!

 

[300UGUY]

I share my driveway with a used car lot. I was driving by yesterday, waved and struck up a conversation with one of the owners. He was saying that they only sold ONE vehicle last month but need to sell 5-6 per month to make it. They finance and even offer a 0% interest rate with no finance charge. Then he says that his vehicles cost too much and he's forced to pass that to his customers! Here's what he said...

The "cash for clunckers" is killing his used car lot. He said they are having to pay higher than wholesale prices AT wholesale because the # of used vehicles has dropped due to the "cash for clunckers" being crushed or salvaged. This in turn has driven prices up on used cars for both dealer and consumers. The used vehicles now are more gas efficient than the old ones. He then says what hurts him could help me (I told him I need to get a truck)! He said dealers are giving top dollar for used vehicles now because customers are buying them to get better MPG and couple that with you buying a new vehicle it's a win-win for the customer. He said the new car dealers can't hardly keep used vehicles on the lot now because of the sortage caused by the "cash for clunckers" and added that people are buying used vehicles for better MPG.

I never thought about it that way but after thinking about it I think he could be right.

Cash for clunkers ended in 2009. And it only involved 600K units. The recession caused car sales to go from approx 19M units to 9M. Depressed new car sales means fewer used cars for resale. Supply and demand rules.

 

[MikeD74T]

The high quality of cars turned in for "cash for clunkers" caused the local Ford dealer enough bad publicity that the cars were immediately removed from their lot to get them out of sight. Not everyone had enough equity to qualify for a new car & were incensed that the government was crushing cars better than they could afford. The entire program was to serve the manufacturers. MikeD74t

 

[zzvyb6]

Keep in mind that used cars are much more likely to last longer, too. And that the large number of cheap rental cars (the ones with dog dish hub caps, AM radios, manual windows, etc) are no longer there. These cars tarnished the reputations of most of the makers so I know specifically GM stopped making them regardless of demand by rental agencies). Keep in mind that the closing of US auto plants stopped the volume of cars made here, so the supply is down for new and used vehicles. That's never coming back, either, so the days of cheap used cars are history. Housing construction is the gauge for pickup truck sales in the US. We all should know what that's like these days. The builder wars of the past good old days are history, too. Nobody in the former 'middle class' can afford a McMansion on a waiter or landscaper's pay scale, even if both are working in the household.