Worried the used car market bubble wont pop anytime soon

[compprep]

Not to mention rentals. They dumped thousands of them last year and now they can't get cars for people to rent when on vacation. Creates more demand.

Anybody wanna but my Volvo? HAHAHA!! Picked up a 2020 Ridgeline as a new DD.

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[ICU812]

Not to mention rentals. They dumped thousands of them last year and now they can't get cars for people to rent when on vacation. Creates more demand.

Anybody wanna but my Volvo? HAHAHA!! Picked up a 2020 Ridgeline as a new DD.

Meh, buy one online, take vacation, sell it to carvana/etc. it be cheaper than renting a wreck for a weeks vacation.
just gotta think outside the box.

 

[compprep]

Meh, buy one online, take vacation, sell it to carvana/etc. it be cheaper than renting a wreck for a weeks vacation.
just gotta think outside the box.

Guess I wasn't clear. Rental companys SOLD a lot of their inventory, and now they need to replace it. That's another new car demand driver. I have plenty of cars and don't need to rent unless I was flying far away and require a rental.

 

[ICU812]

Guess I wasn't clear. Rental companys SOLD a lot of their inventory, and now they need to replace it. That's another new car demand driver. I have plenty of cars and don't need to rent unless I was flying far away and require a rental.

Oh, I understood.
Rental companies are not in any rush to restock their fleet.
Vacation and business rentals are still slow. They are making a killing because they have limited stock, and the rates are much higher.
But for those that take a vacation and fly out and then would rent a vehicle. it be cheaper to buy a car and then resell it in a week. some places it is 500.00 plus per day. ouch.

 

[oneheadlite]

...killing time, perusing autotrader, I've noticed some dealers
actually marking down cars by 2 to 3 k. (Mustang)
Don't remember any particulars but,
...if you shop wisely, who knows what you might find.............

 

[tnk_2]

I just remembered that I have read it somewhere on the internet that the chip shortage will last till the end of 2022.

The CEO of chipmaker STMicro estimated that the shortage will end by early 2023. The CEO of automaker Stellantis said that the shortage “is going to drag into ’22, easy.” Intel CEO Patrick Gelsinger said the shortage could last two more years.

 

[ICU812]

...killing time, perusing autotrader, I've noticed some dealers
actually marking down cars by 2 to 3 k. (Mustang)
Don't remember any particulars but,
...if you shop wisely, who knows what you might find.............

It is Sept. the driving season is almost over, even the parts of the country that weather isn't as much a factor, don't have as many events as in the spring to fall.
This used car market is no different than ebay. just because someone list it for xxx.xx doesn't mean it sell/sold for that.
There is no shortage of used vehicles, There are millions for sale looking for a new home.
I filed this under media hype. reporting on new car dealers lots empty, yet there is a hundred thousand 1-4 year old used vehicles offered for sale within 20 miles of that dealership with an almost empty lot.
They can put whatever number on the glass they want to try to get for it, doesn't mean a thing.
What the bottom line is that a buyer signed paperwork shows does.

 

[ICU812]

It'll be even longer now that they are opening up booster shots J/k.
puts tin hat down.

 

[oneheadlite]

It is Sept. the driving season is almost over, even the parts of the country that weather isn't as much a factor, don't have as many events as in the spring to fall.
This used car market is no different than ebay. just because someone list it for xxx.xx doesn't mean it sell/sold for that.
There is no shortage of used vehicles, There are millions for sale looking for a new home.
I filed this under media hype. reporting on new car dealers lots empty, yet there is a hundred thousand 1-4 year old used vehicles offered for sale within 20 miles of that dealership with an almost empty lot.
They can put whatever number on the glass they want to try to get for it, doesn't mean a thing.
What the bottom line is that a buyer signed paperwork shows does.

...gee, Dad.
Thanks for the life and financial lesson..............

 

[Kermut]

This used car market is no different than ebay. just because someone list it for xxx.xx doesn't mean it sell/sold for that.

There is no shortage of used vehicles, There are millions for sale looking for a new home.
I filed this under media hype. reporting on new car dealers lots empty, yet there is a hundred thousand 1-4 year old used vehicles offered for sale within 20 miles of that dealership with an almost empty lot.

There is absolutely a shortage of used vehicles- just because there are a ton for sale doesn't mean that number is reduced from what it normally would be. I also strongly suspect many of the private seller listings that are astronomically high are people using the car but thinking to themselves, "Well gee if I can sell it for this, I'll make do with my bicycle/motorcycle/other household car and buy another later".

To the OP, if you can fit it in your budget, I would look at ordering a new vehicle, because right now it's the best way to not get completely screwed over in the current market. The well known dealers on this forum are offering ~4% below invoice / ~8% below MSRP on most Mustangs. That way you get a brand new car and exactly what you want, with a full factory warranty, without having to worry about over valuing a used car. Because right now nobody has a clue as to what the market is going to do over the next 6 months to 2 years. A $40k used Mustang today may very well be a $30k car in a year, which is frankly an insane devaluation on a already used vehicle.

If I had to guess, I would think prices will gradually drop on used cars over the next year and a half, but I don't think we will see pre-pandemic value on used cars (accounting for inflation obviously) return to normal for at least 2+ years. Long story short, if you buy something new and hold on to it for 4-5 years I think you can expect a normal valuation at the end of your ownership, whereas for doing the same with a used car, you are gonna take a serious beating.

 

[cerbomark]

Just took an hour ride to see a FJG Mach 1 that Ford dealer had brand new. 10K over MSRP (Market adjustment), and a GT 500 (Edit) ($30K over a $105 MSRP). wow, as stated earlier what will they sell for?
I m waiting for my ordered car but just wanted to see one closer up. Fit on all the panels looked fine.

 

[Kermut]

Just took an hour ride to see a FJG Mach 1 that Ford dealer had brand new. 10K over MSRP (Market adjustment), and a GT 350 ($30K over a $105 MSRP). wow, as stated earlier what will they sell for?
I m waiting for my ordered car but just wanted to see one closer up. Fit on all the panels looked fine.

You mean GT500 or a GT350r?

I don't think the Mach will sell with that markup. I did a quick search online as I was writing my earlier post and there are dealers advertising M1's with minimal ADM ($0 - $2k).

I too get bored waiting for my car. Occasionally I reach out to folks with GT350's and see if I can't get them to drop their price down a bit, with the rationalization that if I can get them to give me pandemic pricing on my trade in, maybe it will all work. But then I think about it and realize that a 2019 GT350 with low miles in non-pandemic pricing should probably be about the same I'm paying for my Mach's and I kinda sour on the whole thing. Best I've seen so far on a 350 I would actually want is like $65k, which is $11k over what I am paying for the Mach.

 

[lizardrko]

had a lot of people tell me to wait a few more months before buying a used car, but with graphics cards people kept saying "its only a few more months" but looks like we're in it for another year. How likely is the used car market bubble going to pop in the next few months? you think its gonna be another year or 2?

Ill say this...pandemic started as 2 weeks, we are now 2 years into it. Let that be a hint to your answer lol

 

[Dave2013M3]

It will probably last until this summer 2022. The chip shortage isn't going away. I drove by SouthBay Ford one of the largest Ford dealerships in S. Cali, huge dealership...they had 30 new cars on the lot, most of them F150s. They only had 2 Mustangs, one of them a fully loaded Mach 1 at $65K.

 

[5.Oh Crush]

I'm seeing too many temp plates on the road! Will continue until the market is satisfied.

People selling houses and buying cars like its 2005. They think because their used car is worth 1-2K more, its ok to buy at MSRP.

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