Yep I got my mom a corolla hybrid le and it has $6k of equity as of yesterday. Actually selling for more then the original msrp 2 years ago
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For sub $20K vehicles people should think about fuel costs. For someone driving 1K miles a month, difference between 20mpg and 30mpg, at national average fuel price, is 60 dollars. It all goes to total cost of ownership though.
Insurance issues are not a mystery. Minimum coverage in most states has not changed much over the past ten years but the average new car cost has gone way up. So now most people are woefully underinsured. With the average new car costing $48K, insurance companies often have to pay out big claim even when the other driver is insured and at-fault.
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The whole negative equity leading to slowing new car sales has been discussed ad nauseam on “Car Questions Answered” Youtube for months. Not a surprise.
Now repos are actually happening and accelerating which should lead to more used price depreciation.
Insurance spike is not a surprise. Here in Florida, I know many that had their rates raised 20-30% and with the hurricane flooding, uninsured motorists (26% of drivers here don’t have insurance), and injury/accident scams it will just get more expensive.
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Yup, reports there are rows and rows of repos starting to show up at auctions. There is a rush for banks to repo and get them sold at auction before wholesale prices really tank.
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Yeah when this happened like 6 months ago pricing dropped for a month then shot back up. Not sure this time will be any different, still think there’s a backlog of buyers waiting for deals just like the housing market.
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Not sure if you want to steer them to Anthony at DSR leasing, but, he can buy out their lease at personal buyout rate. Just captured 3k equity on an Ally lease and got into a new Honda finance deal completely unrelated.
Yeah I usually just roll them into another ally lease and my trade in quotes are comparable. I do send some to him tho thanks!
Watch what you say around here. Tomorrow morning there will be a 1000 post thread on Corolla Hacking N Flipping. LOL!
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That deal doesn’t exist anymore. I think we did like 3500 off msrp on a corolla hybrid back then
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Fixed that for you, can’t hack what you can’t find…hehe
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I run potential cars through Vroom all the time for a data point and today was the first time I got a call from them telling me they want to buy the car.
I’ve also been tracking a car I sold privately a few weeks ago and the Vroom value keeps going up a few hundred each week. Not sure what to make of this…
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Yeah, he has been harping on that for a long time, it appears to finally be coming true. We will see how long it lasts. (As someone who has been shopping the used truck market for awhile, I haven’t really seen it play out. I was beginning to wonder if it was a stopped clock being right twice a day…- eventually it would turn.)
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Yes, State Farm and Allstate have announced they’re leaving CA. As someone in the Midwest now, I don’t want to subsidize beach/mountain living and residents should be paying full freight.
Same with Florida and hurricanes. Hike premiums by 30-40% or make owners self-insure. That’ll cut a lot this nonsense down.
Note: I like both states and visit; this isn’t political.
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That’s home insurance.
It’s not a lifestyle thing.
California passed a law that requires insurance companies to give discounts to policyholders who make certain fire-prevention changes to their properties, regardless of whether there’s a positive actuarial impact to risk.
Then they made it harder for insurance companies to cancel policies for people in areas already hit by - or vulnerable to - wildfires. Many of these areas never should have been approved for development.
And then the insurance commission imposed a moratorium on premium increases, because covid.
Meanwhile, the cost of construction materials (and everything else) has skyrocketed.
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Yep, but the problem with that is they are likely to both raise auto rates to backfill the lost homeowner’s business.
We can then hike your insurance as well for tornadoes and floods.
All insurance should just be backed by the government at this point, for-profit insurance shouldn’t exist end of the story!
Florida and Cali both have extreme sides of politics and need to be spanked a bit by the climate to clean their brains out.
California you shouldn’t be able to build in fire hazard areas without fireproofing the hell out of everything and if the wonder material for super fireproofing doesn’t exist then don’t let people build their, simple!
The same with Florida and all of the Gulf states, no wooden homes should be allowed to be built minimum 1 mile distance to the coast where hurricanes happen and this restriction should be increased by 1 mile per year up to 10 miles max for new homes/rebuilds of destroyed homes. (this helps with the weather getting more violent) anything from 10 miles to 100 miles inland in the path of a hurricane needs to be rated for 1000-year flooding. adapt or get raped by mother nature.
Ever think that perhaps corrupt overbearing government is what allows for profit (and often compulsory) insurance to exist?
There’s not one case I can think of offhand where insurance has gotten cheaper when .gov dips their hands in the till or puts their foot on the throttle.
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