Used car market isn’t depressed. This past week has been absolutely insane.
Prices at auction and lease purchases are considerably higher than they were pre-pandemic.
As I stated earlier, a lack of new car inventory would push focus to used cars.
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Used car market is unaffected by the influx of rental cars flooding it?
It’s easy to see what your car is worth on Cargurus. In my professional opinion you cold sell the car at $24,235-ish. In this case RV is almost spot on.
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Completely unaffected. People are buying them by the boatloads. Our UCM hasn’t been able to buy anything, it has all been running for over retail at auction.
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Which rarely happens even in the good times … now with Carvana, Vroom etc having dropped their bids, it’s almost next to impossible.
I just don’t think it’s a good indicator because the results are lopsided. You’re hardly ever going to get a positive result.
We’ll be in the same boat in 2 years. We really like our Tiguan and we’re way under miles (and will continue to be so), plus like your Santa Fe, it has a longer warranty (6yr/72k) so it won’t immediately drop out of coverage. Not sure where the actual value will be in relation to lease end buyout at this time, but the wife does want a few more features (around view camera, park sensors), so that may ultimately drive is to return and lease again more so then the value.
That said, if you’re happy with your SF, it’s features, it’s reliability, it maybe be worth buying it out even if it’s a bit above replacement value, since like our Honda friend said, the best used car is the one you already know. But I’d at least scope out new car lease offers before you make the final decision.
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Probably depends on the brand and maybe the model. The ones that are common rentals must surely be affected.
Shouldn’t surprise anyone if LR/RR is unaffected
No, it is every brand. More-so on the domestic side actually. Just because there is an influx of rental inventory doesn’t mean it’s going to tank the entire used car market, just the values of rentals themselves. They are treated differently (like a vehicle with frame damage on the CarFax).
lower prior rental car prices ≠ lower used car prices
Ruh roh, and those are retail prices, although I know nothing about them, just wanted to point out they are rentals too
I’m not disagreeing with you, just saying that when evaluating buying out a lease, it’s mindful to understand how much negative equity you’re signing up for right out of the gate.
And Hertz is the smallest user of Jag / LR. Sixt and Enterprise have wayyyyyy more.
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I’ve done that analysis many times and it really depends on a car. The 5-8 year range is the tricky one, let me explain my rationale.
- Would I lease an Accord every 3 years? No, typically for leasing incentives are low, MF is high, while repair costs even after 5 years are low.
- Would I buy a BMW? Heck no. Incentives are high for leasing, while repair costs are gonna be higher after the warranty expires.
For me, the TOTAL cost came out to be just around 190$/month, considering I drove an average of 14K miles a year, and includes every wear/tear, repair and maintenance cost. I dont think any mid-sized sedans are going for that rate right now, maybe a few years back.
Would I do it again? Probably not, simply because if I can swap a car more frequently at a small premium, I would. The peace of mind of not having to worry about over mileage or dents/dings was a great bonus thu.
I just think that not having a one bill fits all is not the right approach. If anything, lowest cost of ownership would be buying around 2-3 year mark, and selling at around 5-6 mark, when depreciation is mostly done but major repairs havent kicked in.
Im really tempted by Hertz right now, if only I could swap out my 5- in a jiffy.
I always find this to be an odd argument. If you own the car and rack up miles and damage, you’re lowering the value of the car, so it’s still costing you money.
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Understand where u coming from but in reality, a car with 75k mi isn’t gonna be that much cheaper than a 70k one. However, 5k over the lease a is gonna break the bank for some folks.
The depreciation curve really starts to flatten out miles or years wise after ~6years or so
I loved my leased 2017 Chevy Volt. The first 2 years I had it, I really thought about keeping it forever. Then in the 3rd year, small nagging inconveniences starting to surface and when I check online to see used 2017 Volts with much lower mileage and slightly less acquisition cost than mine, it became a none Issue for me as I will be returning the car. Ended up turned in the Volt for a Bolt.