Used Car Prices? What?

Maybe I'm crazy, but I think there's something else other than high fuel prices behind this. Didn't we have a thread a couple of weeks ago about how many of us don't like new cars? IIRC, some folks in that thread mentioned how current safety requirements caused some of the increase in prices (IMO, true), and how the non-enthusiasts who just want more power cupholders have influenced the decisions automakers are making about how much of that junk to put in new cars (IMO, also true).

Add to that the fact that there ain't as many people with real jobs in this country as there used to be. Again, IMO..simple "supply and demand". There's a bigger demand for used cars now (because new ones are so expensive, and fewer people can buy them), and prices have risen accordingly because so many people are buying used, rather than new. I'd really like to hear what other folks think about my weird hypothesis..especially those of y'all that disagree with it. I really think the rising cost of used cars started long before gas prices started going back up.

I remember the price of used stuff jumped up like crazy around the time cash for "clunkers" was implemented and never really dropped back down like it did round when gas was dropping from it's 05 numbers.

aussiesmg wrote: Brand new Mazda 2 at the Mitty owned by a GRM staffer for less than $13K.

Is that a car for sale or a deal that you picked up?

friedgreencorrado wrote: Maybe I'm crazy, but I think there's something else other than high fuel prices behind this. Add to that the fact that there ain't as many people with real jobs in this country as there used to be. Again, IMO..simple "supply and demand". There's a bigger demand for used cars now (because new ones are so expensive, and fewer people can buy them), and prices have risen accordingly because so many people are buying used, rather than new. I'd really like to hear what other folks think about my weird hypothesis..especially those of y'all that disagree with it. I really think the rising cost of used cars started long before gas prices started going back up.

This. Used car prices have been through the roof around here for a while. Mid 90's Grand Cherokee $3500, but it has trans issues and 190k, $2500 Civic, sure, the shell (4 door) will include a block with only 1 spun baring.

Grand Cherokee prices I blame on cash for clunkers, they got way to many of them and they might actually be considered rare?

But if you can swing 15 or 20k you can get a 50k car 2-3 years old.

^If you can swing $20k, there are a lot of NEW cars you can buy.

In reply to former520:

Around here, a Grand Cherokee is worth less than an XJ Cherokee. $2000 buys a NICE ZJ Grand Cherokee, but a crappy XJ Cherokee. Heck, it seems like my 89 XJ that I payed $600 for and have about $1200 in is worth about $2000 right now.

On the flip side, Jeep Wranglers have dropped in value a good deal over the past 4 months. I'm talking a 25% price drop.

XJ's are usually on par with ZJ's around here. I picked up one in great shape with little looking 3 years ago for $1500 super clean with 120k on it. When it got hit and totaled (in the parking lot at work of all places). The closest I could find 6 months ago was a $1300 complete paint burnt, motor knocking with a transmission that wouldn't go in reverse. I was going to swap my motor and trans, but it was so rough it wasn't worth it. All the rest were still $3k plus and not really clean. I think it is a lot of people not buying new or having shot credit and buying what they can swing for cash. (I resemble that remark, but never bought new)

XJ's will always be XJ's. We will still be legends when we are all driving cars running on algae and used tea bags. I wonder if they, and all solid axle 4x4's, are not on the beginning of an upswing in prices. I don't think anyone, (does Range Rover still?) make a solid axle mid size.

ShadowSix wrote: Anyway, if you want to amuse yourself some time, sit down with an acquaintance that has just done the truck-to-compact swap and work out the payback period on their trade. I love calculators on cell phones.

See, the really smart people would just buy a beater mobile for $1k and drive that while keeping their truck. It's what my father will do. By doubling his gas mileage, he would spend $2500 in a year on gas, vs $5000. Of course, this assumes you have the space.

We found a 2007 Sentra S with 16,900 miles - spotless. Good appliance car for the Chemistry major kid.

A lady owned it and kept it spotless. I asked who cleaned it and armor all'd the tires. She did.

pete240z wrote: We found a 2007 Sentra S with 16,900 miles - spotless. Good appliance car for the Chemistry major kid. A lady owned it and kept it spotless. I asked who cleaned it and armor all'd the tires. She did.

Pete, is it OK to ask what you paid for it (and what avg. prices for something like that are in your neighborhood)?

I just put Mrs. Neon in an '03 Accord Coupe EX. $8k, 93k and CLEAN. Book ranges from $10K-11K+. We showed up on the dealer lot about 3 hours after they dropped it $1k.

Honda resale...

To thread jack somewhat, does anyone think that, over time, the value of late model used cars will actually go down? I ask because of a few conversations I've had recently with mechanics, folks in the biz, etc regarding the exponentially higher complexity of new cars. The thought is that new cars are SO complex that, once out of warranty, the potential repair expense will cause folks to avoid them.

For instance, I love BMWs and have owned several. But the thought of buying a 2012 model in 10 years scares the E36 M3 out of me. Heaven forbid something go wrong with it. The expense of the part alone might be more than the car is worth.

Is that crazy talk?

Not really, the thought of having to pay to fix all the crap that would break on a new car down the line scares the piss out of me.

I think I'll still be driving nothing newer than the late 90s 30 years from now. That was about the last time you didn't need to be a certified tech to work on the goddamn things.

dyintorace wrote: To thread jack somewhat, does anyone think that, over time, the value of late model used cars will actually go down? I ask because of a few conversations I've had recently with mechanics, folks in the biz, etc regarding the exponentially higher complexity of new cars. The thought is that new cars are SO complex that, once out of warranty, the potential repair expense will cause folks to avoid them. For instance, I love BMWs and have owned several. But the thought of buying a 2012 model in 10 years scares the E36 M3 out of me. Heaven forbid something go wrong with it. The expense of the part alone might be more than the car is worth.

Hmm. I was about to say "I don't think so" before I realized you were talking about cars from the 00s or 10s. You may be on to something! Hell, the reason I hate my Corrados sometimes is because they have so much electrical crap to chase down. If you're right, it would seem that the prices on used cars from the 80s & 90s would go up (less electric crap), but prices on cars from the 00s and 10s (more electric crap, see AngryCorvair's thread about replacing the battery in a modern BMW 5-series) might actually go down.

I guess that in the end, it would depend on how much the individual buyer would be bothered by windows that don't work, dead A/C, dead ABS and stock anti-theft stuff. How much more work would it take to "bypass" the PITA stuff in a modern car than it would to do it in one that's 20yrs old? Don't forget that most car owners/buyers in the US are not like us (i.e., not enthusiasts). Maybe I'm nuts, but I certainly think that the craigslist ads of the future will say things like "no digital throttle", and "no power windows" to get people to look at the ad..

I guess I'm saying that we shouldn't use the term "used cars" as a general term to talk about this kind of stuff. Seems like how cars are equipped when they're new has a lot to do with how they're going to be sold when they're old.

friedgreencorrado wrote:

pete240z wrote: We found a 2007 Sentra S with 16,900 miles - spotless. Good appliance car for the Chemistry major kid. A lady owned it and kept it spotless. I asked who cleaned it and armor all'd the tires. She did.

Pete, is it OK to ask what you paid for it (and what avg. prices for something like that are in your neighborhood)?

http://cgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?ViewItem&item=270742536669&viewitem=&sspagename=STRK%3AMEWAX%3AIT

He took $11,000 for the car.

Illinois jacks with the taxes too. Sales Tax through private party is $215.00. Sales Tax through a dealer is 7-1/4% after adding dealer $156 Doc fee or $808.00. I saved $600 right there.

Derick Freese wrote: These used car prices have me looking at selling my XJ (up in value) and purchasing a YJ or TJ (both down in value). I picked up a welder so I can fix the floors. I should just about double my money on the deal.

I dunno...Last spring I bought a 1999 TJ for 4900, sold it this spring for 7000.

Joey