Markets will normalize but to what degree, especially with incentives being a huge question mark. Differing viewpoints on this from different institutions; some see it as an avenue to limit excess ground inventory and instead focus on reinvesting on improving the customer purchasing experience, while others view it as when can we bring back business as usual. Depends on the region and the demographic the mfgs caters to. I’d wager incentives are coming back for the low end, while higher end vehicles move towards a more tasteful experience.
Or who knows MSRP+ADM-incentives that equate to ADM=Blessings granted.
If cars, in the future, somehow hold their value (or even appreciate!), then buying and holding is going to be vastly superior to virtually any lease…especially with lease companies not allowing third party sales.
And, IHMO, it will be much better for our wallets as a leasing expense (which in the not so recent past was 100% loss effectively) will be eliminated for our household expenses!
Of course, it won’t be as much fun to drive a car for 5-10 years. And this forum is going to get very lonely!
Anecdote: 10% haircut on a 2018 Lexus IS 350 since January. Carmax Socal. Could be a reflection of people shunning gas guzzlers, though
Or banks pulling back on loaning way over book.
A post was merged into an existing topic: Off Topic Landfill 5
Running into that issue with us bank and ally leases now on vehicles being sold over msrp…
Also on states like nj and ny that tax upfront. They don’t want us going over 105% of msrp with the tax included. So I can’t do sign and drive leases anymore with certain states
I’m sure it has nothing to do with the shaming ritual we’re imposing on ourselves regarding energy dependence and cost.
if only this were true.
Carvana just pulled the rug from underneath their bid for my X4. Last week they offered 49K and just lowered it to 46K. It had stabilized for a couple of weeks and even went up from 47.7 to 49K, but the 46K is a new 3 month low.
The fact that everyone and their mother is now buying used cars is a sign that we are near or at peak insanity. Even my shoeshine boy is talking about flipping cars.
Buy the rumor, sell the news.
Now we wait.
I’m the shoeshine boy
I had been following this discussion and had a moment this morning when I saw from mycarfax the value of my relative’s 2000 Acura TL in Fair condition was now $4,080 private party and excellent crept up to a staggering $5,810. This used car market is nuts. I use mycarfax to keep tabs on my older relatives cars as they tend to forget registration or maintenance etc if I don’t remind them.
That’s a collectible though, completely different ball game Get something on paper like a firm offer from Carvana, Vroom, Carmax and provide a reference point to help establish some trend. Otherwise just one number from carfax is meaningless.
Wow, this one baffles me, nice that you keep an eye on it for them.
Haha, I made a similar shoeshine boy comment not too long ago. At the same time though, I find a surprising amount of people with brains, spare cash, and a history of hustle that still seem very disinterested when I explain it to them. The possibility of selling a used car for more than a new car seems to fry a lot of brains.