I don’t a $1k change is enough to signal that the bubble has burst, since I saw similar fluctuations back in June when I would run a quote multiple times over the course of a week.
That being said, I think the end is coming fairly soon due a bunch of factors: 3rd party lease buyouts being restricted by banks, more new vehicle inventory showing up on dealer lots, delta variant potentially causing new restrictions/lockdowns, and the general greed pushing resale values too high (case in point: your dealer’s listing above).
At a certain point, no matter how desperate, people simply aren’t going to pay THAT much over normal prices for a used vehicle. There is still a fair amount of demand elasticity with cars. So while there are some people unbelievably foolish enough to pay, for example, $60k+ for a used 4Runner…there aren’t that many people. I hope.
I wonder if Delta variant has the risk of changing the car demand landscape yet again.
Me being in the Tech industry, I am seeing re-evaluation of the office work requirement yet again even for vaccinated individuals. I know people who were vaccinated and contracted covid again from a delta carrier.
They are just so many unknown variables at this time that it is hard to predict what is going to happen.
I will say the used cars I was watching on third party websites fell around 300 to a 1000+ since last week. Even the one I sold a few months back that is still for sale went down by alot.
I owe $27k so with close to $10k in equity it’s been real tempting to sell, I just don’t know what I would get into that comparable at a similar payment (in before get a 4xe, I’ve thought about it).
In addition to delta thwarting travel, the end of the summer is approaching (scary to think about, I know) so rental agencies probably are slowing their accumulation of used cars too.
On top of that, there have been so many articles in the past few weeks about the insane prices for used cars, that I imagine a lot more people have tried to sell theirs. And more people are probably waiting on the sidelines, waiting for prices to fall.
A lot of dealers are still marking them up but there are quite a few across the country that will sell them for msrp. I have one on order right now at a dealer in Colorado (I live in Arizona) for msrp. My local dealer has one on the ground that is the exact spec that we ordered but they want 10k over sticker for it. No thanks! I’ll wait the three months for my order to be built.
Dealers were marking them up before the chip shortage. A friend of ours was looking for a Sorento Hybrid in a specific color last month. There was only one in SoCal. The dealer mark up was $5k. And the wife was determined to have it for their road trip the following week. I saw her driving it couple of weeks ago, but I’m afraid to ask what they paid for it.
