Used Car Market

[MuggsyB]

We find ourselves in the unusual position that we could probably part with a car without too much inconvenience. My wife and I each have a car and we have a CR-V that our kids drive. We bought the CR-V used just before COVID hit (it probably would have been much cheaper if we'd waited a few weeks). With my youngest starting college in a few weeks, we're going to have a car sitting unused. We never let our older kids take a car to college and we're not inclined to start now. I'm already planning to drive the CR-V on snowy days because my car doesn't do particularly well in snow.

With prices being where they are, I'm beginning to consider selling my 2013 Altima. It's got a lot of miles (175k or so) but it is very clean (probably 98% of its miles have been with only the driver). Looking at Kelly's, it may be worth somewhere in the neighborhood of $4200 to a dealer and $6200 in private sale. Hmmm...

My experience with my 2005 Audi was the KBB prices were much lower than dealerships offered.   They are desperate and you will probably get more than you think.

[UWW2MU]

We find ourselves in the unusual position that we could probably part with a car without too much inconvenience. My wife and I each have a car and we have a CR-V that our kids drive. We bought the CR-V used just before COVID hit (it probably would have been much cheaper if we'd waited a few weeks). With my youngest starting college in a few weeks, we're going to have a car sitting unused. We never let our older kids take a car to college and we're not inclined to start now. I'm already planning to drive the CR-V on snowy days because my car doesn't do particularly well in snow.

With prices being where they are, I'm beginning to consider selling my 2013 Altima. It's got a lot of miles (175k or so) but it is very clean (probably 98% of its miles have been with only the driver). Looking at Kelly's, it may be worth somewhere in the neighborhood of $4200 to a dealer and $6200 in private sale. Hmmm...

I just got a new car and instead of trading in my old car I sold it to Carvana.  I went to a handful of dealers that were doing cash offers for used cars and I checked pricing with Carmax and Carvana.  Carmax and Carvana offered me thousands more than the regular dealers.  The process was also extremely easy and quick.  I'd do that again in a heartbeat.  Made buying the new car so much easier since I didn't have to deal with the trade in on top of the purchase (although that cost me a little bit on sales tax, the higher offer from Carvana made up for it many times over).

[StillAWarrior]

I just got a new car and instead of trading in my old car I sold it to Carvana.  I went to a handful of dealers that were doing cash offers for used cars and I checked pricing with Carmax and Carvana.  Carmax and Carvana offered me thousands more than the regular dealers.  The process was also extremely easy and quick.  I'd do that again in a heartbeat.  Made buying the new car so much easier since I didn't have to deal with the trade in on top of the purchase (although that cost me a little bit on sales tax, the higher offer from Carvana made up for it many times over).

The Carvana offer my my car was a couple thousand dollars less than what KBB said it was worth -- just $2500.

[MuggsyB]

I just thought I'd share this because we were discussing rental car rates.  A friend  of mine is a professor at Cal-Berkeley.  She and her fiance are going to Maui over Christmas for two weeks.  Through their rental car contract she got a car for $165 a week in lieu of $1400.  I guess this isn't uncommon for State University employees. I was flabbergasted and am now thinking of kidnapping her before future travel plans. 

[The Sultan]

I just thought I'd share this because we were discussing rental car rates.  A friend  of mine is a professor at Cal-Berkeley.  She and her fiance are going to Maui over Christmas for two weeks.  Through their rental car contract she got a car for $165 a week in lieu of $1400.  I guess this isn't uncommon for State University employees. I was flabbergasted and am now thinking of kidnapping her before future travel plans. 

If this is personal travel, that is likely not allowed under this contract...but people do it all of the time.  Just hope she doesn't have an accident because they may end up personally liable.

[MuggsyB]

If this is personal travel, that is likely not allowed under this contract...but people do it all of the time.  Just hope she doesn't have an accident because they may end up personally liable.

I guess I hadn't thought of that...good point. 

[WI_Inferiority_Complexes1]

The Carvana offer my my car was a couple thousand dollars less than what KBB said it was worth -- just $2500.

I have heard, anecdotally, that Carvana overpays for newer-model vehicles and underpays for older vehicles.

We are not making many friends when people come into the dealership and are only selling their vehicles, (instead of trading in on a purchase). I think the general public thinks we are desperate for any vehicles; what we really need are new vehicles from the factory.

If we can't sell your used vehicle for a nice profit quickly we have no need for it.

[UWW2MU]

I have heard, anecdotally, that Carvana overpays for newer-model vehicles and underpays for older vehicles.

We are not making many friends when people come into the dealership and are only selling their vehicles, (instead of trading in on a purchase). I think the general public thinks we are desperate for any vehicles; what we really need are new vehicles from the factory.

If we can't sell your used vehicle for a nice profit quickly we have no need for it.

In my case I think it was the miles.  It was a clean (but not perfect, with one good ding on rear bumper) 2013 Chevy Malibu LTZ with every option available and about 84k miles.  KBB was low/mid 7k range which is around what most dealers offered.  Carmax was $9,100 and Carvana was $9,600.

I think KBB actually went up since then... so perhaps the new companies are more trend setters than followers?

Either way, it was nice to have the car gone so easy and money in the bank by the next morning.

[MU82]

I have heard, anecdotally, that Carvana overpays for newer-model vehicles and underpays for older vehicles.

We are not making many friends when people come into the dealership and are only selling their vehicles, (instead of trading in on a purchase). I think the general public thinks we are desperate for any vehicles; what we really need are new vehicles from the factory.

If we can't sell your used vehicle for a nice profit quickly we have no need for it.

I only think my local dealer is desperate for both of our cars because we get 5-10 letters and/or emails a week telling us how desperate they are for our cars!

[UWW2MU]

I only think my local dealer is desperate for both of our cars because we get 5-10 letters and/or emails a week telling us how desperate they are for our cars!

Ha!  True!

[WI_Inferiority_Complexes1]

I only think my local dealer is desperate for both of our cars because we get 5-10 letters and/or emails a week telling us how desperate they are for our cars!

I get it. We don't have a BDC department with the singular goal to get people in the door, so all those tasks fall on salesmen.

While I've never actually called, our software provides templates.  "We have a customer specifically interested in a (your year, make, model). Would you considering stopping by the dealership for a free, no-hassle appraisal?"

It's just all so artificial. Nobody is looking for your 15 year-old car that you think is in good shape because a lot of the 18k miles/year we're driving your kid to college. Somebody will settle and eventually buy it, but nobody is looking for it.

[MU82]

I get it. We don't have a BDC department with the singular goal to get people in the door, so all those tasks fall on salesmen.

While I've never actually called, our software provides templates.  "We have a customer specifically interested in a (your year, make, model). Would you considering stopping by the dealership for a free, no-hassle appraisal?"

It's just all so artificial. Nobody is looking for your 15 year-old car that you think is in good shape because a lot of the 18k miles/year we're driving your kid to college. Somebody will settle and eventually buy it, but nobody is looking for it.

And I totally understand that.

In our case, I really do think dealers and others would very much like our cars, and I'm actually just about ready to sell one of them. But I'm not sure yet what replacement vehicle I'd buy ... and, when I do decide, if what I'd want would be available.

[jsglow]

I'm so glad we don't need a car anytime soon.

[Spaniel with a Short Tail]

I get it. We don't have a BDC department with the singular goal to get people in the door, so all those tasks fall on salesmen.

While I've never actually called, our software provides templates.  "We have a customer specifically interested in a (your year, make, model). Would you considering stopping by the dealership for a free, no-hassle appraisal?"

It's just all so artificial. Nobody is looking for your 15 year-old car that you think is in good shape because a lot of the 18k miles/year we're driving your kid to college. Somebody will settle and eventually buy it, but nobody is looking for it.

Hey WIC1, I sent you a PM the other day. Not sure you saw it. Just checking.

[WI_Inferiority_Complexes1]

I've never been pm'd before. Very exciting. Unless I don't know what I'm doing, I should have just responded. Let me know here if I'm doing this wrong.

[MU82]

According to inflation numbers out today ...

The index for used cars increased in July, but the 0.2% rise is much lower than in recent months.

[Spaniel with a Short Tail]

A pretty good article about the July numbers.

https://www.msn.com/en-us/money/markets/used-car-prices-are-finally-cooling-off-but-it-still-wont-be-easy-to-buy-one/ar-AANcE6g

[ChitownSpaceForRent]

Yea it's certainly settling. The car that I was looking at where the dealer said "Someone will buy it at this sticker price" is already down 2,000 from that price in just two weeks.

[MU82]

Dang. I guess I missed my prime selling window. Oh well ... I wasn't ready to buy yet, and there's no way to get by without a car in Charlotte unless you're right downtown (which we're not).

[naginiF]

Our new ride gets here in 3-4 weeks, just need the market not to burst before that

[naginiF]

Our new ride gets here in 3-4 weeks, just need the market not to burst before that

10 yr old vehicle with +110K miles and I received ~28% of what I originally paid for it on a trade-in where the the trade-in was not part of the original purchase price negotiation.....and Carvana quoted $750 higher than the dealer offer.

Sample of one but it seems there's still some value in selling used vehicles.