Rising rates.. Used car prices come down? Thoughts

Donatello. · 02-22-2022, 07:32 PM

Eventually this market will correct. It's unsustainable as is. When & by how much? Who knows.

The housing market looks like 2008...only worse.

When the bottom falls out, it will not be pretty. Those with cash will be able to snag some amazing deals at that time.

Tommy-G · 02-22-2022, 07:32 PM

Quote:

Originally Posted by chassis

Supply issue. Car factories are still curtailing output as we speak due to parts availability.

You meant unavailability. I have cars in the body shop waiting 4 months for parts. I have one car waiting 5 months on a structural part which is the crucial part to the job. Owner has no rental coverage, manufacturer dgaf…and there are NONE to be had in the country.

Donatello. · 02-22-2022, 07:33 PM

Quote:

Originally Posted by jsf721

I sure hope it does not take that long. I’m buying out my 2019 lease to avoid the bubble pricing. I am not sure I can make it to 2026. Or that my car can make it. I have 36k on the clock and that is covid lite mileage for me.

Are you serious? Only 36k & you think something might happen? LOL Well, it's a BMW? Make sure you get an extended warranty..

Donatello. · 02-22-2022, 07:34 PM

Quote:

Originally Posted by Nuckle

I agree with Rick and full market correction will happen in 2026.

When do you think the correction will start, though?

2023 IMO if not sooner

Nuckle · 02-22-2022, 08:01 PM

Quote:

Originally Posted by Donatello.

Quote:

Originally Posted by Nuckle

I agree with Rick and full market correction will happen in 2026.

When do you think the correction will start, though?

2023 IMO if not sooner

Really depends on how much the fed increases rates. I could see rates pull back down in October, it is an election year. It's all a guess either way.

chassis · 02-22-2022, 08:47 PM

Rates play a minor role. Supply plays the major, possibly only, role.

Chip shortages will affect auto production into 2024. Supply will not be normalized until then. Used vehicle inventory will remain tight and prices will remain high.

Donatello. · 02-24-2022, 05:38 PM

Quote:

Originally Posted by chassis

Rates play a minor role. Supply plays the major, possibly only, role.

Chip shortages will affect auto production into 2024. Supply will not be normalized until then. Used vehicle inventory will remain tight and prices will remain high.

Used vehicle inventory hasn't been tight anywhere I see. Always tons of used cars on the lots

ezaircon4jc · 02-25-2022, 12:01 AM

Quote:

Originally Posted by Donatello.

Used vehicle inventory hasn't been tight anywhere I see. Always tons of used cars on the lots

I guess that depends on whether one is looking for a specific car or a specific price and doesn't care about the make/model. I was looking for a 2019 540i with M-Sport. Right now, there are only 321 540's available nationally. Most don't have M-Sport or my other requirements; LED headlights and comfort seats. We found one about 85 miles from home a couple of weeks ago. Being a guy, I keep looking just for fun and I have yet to find the options I bought for the price I got. At least from my research, prices are still going up.

I drive past an auto park at least once a week. The dealers' (there are at least 5) lots are still pretty empty. The Nissan dealer's lot looks like an empty parking lot. The BMW dealer has their cars "social distancing."

Donatello. · 02-26-2022, 10:34 AM

Quote:

Originally Posted by ezaircon4jc

I guess that depends on whether one is looking for a specific car or a specific price and doesn't care about the make/model. I was looking for a 2019 540i with M-Sport. Right now, there are only 321 540's available nationally. Most don't have M-Sport or my other requirements; LED headlights and comfort seats. We found one about 85 miles from home a couple of weeks ago. Being a guy, I keep looking just for fun and I have yet to find the options I bought for the price I got. At least from my research, prices are still going up.

I drive past an auto park at least once a week. The dealers' (there are at least 5) lots are still pretty empty. The Nissan dealer's lot looks like an empty parking lot. The BMW dealer has their cars "social distancing."

Things like that don't fall under COVID related, though. Just not many of them made. You'd have the same issue pandemic or not

chassis · 02-26-2022, 12:06 PM

Supply of new vehicles will be pressured well into 2024. Balanced supply and demand won't begin to materialize until after 2024.

This will keep upward pressure on used car prices.

02-22-2022, 07:32 PM	#23
Donatello. How's My Driving? 1084 Rep 987 Posts Drives: Hellcat & Miata Join Date: Apr 2020 Location: US iTrader: (0)	Eventually this market will correct. It's unsustainable as is. When & by how much? Who knows. The housing market looks like 2008...only worse. When the bottom falls out, it will not be pretty. Those with cash will be able to snag some amazing deals at that time.
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02-22-2022, 08:47 PM	#28
chassis Colonel 6553 Rep 2,310 Posts Drives: 9Y0 Cayenne S Join Date: Mar 2019 Location: Einbahnstraße iTrader: (0) Garage List 2020 Porsche Cayenne S [7.69]	Rates play a minor role. Supply plays the major, possibly only, role. Chip shortages will affect auto production into 2024. Supply will not be normalized until then. Used vehicle inventory will remain tight and prices will remain high.
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02-26-2022, 12:06 PM	#32
chassis Colonel 6553 Rep 2,310 Posts Drives: 9Y0 Cayenne S Join Date: Mar 2019 Location: Einbahnstraße iTrader: (0) Garage List 2020 Porsche Cayenne S [7.69]	Supply of new vehicles will be pressured well into 2024. Balanced supply and demand won't begin to materialize until after 2024. This will keep upward pressure on used car prices.
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