Used Cars Appreciating in Value

[Lowell]

Remember the old saying, "Buy a new car and it loses $x-thousand when you drive it out the door?" Not so much anymore. Thanks to the pandemic / chip shortage / supply chain / etc. etc. the game has changed. So much so that some new car sales contracts bar new car buyers from reselling the vehicle for one year.

Time to sell? Some used cars go for more than new models

Jamie L. LaReau

Detroit Free Press USA TODAY NETWORK

Call it nearly unbelievable, but for the first time in recent history, many mainstream vehicles are now appreciating assets. That's right. There are late model year used cars that are selling for prices higher than when they were new and - in some cases - the used vehicle is more expensive than its new counterpart.

For example.

in January Ford warned dealers not to upsell reservations for the popular Lightning EV pickup. It also wanted customers to sign a contract preventing them from reselling it within a year.

The average sticker price for a 2022 Lightning is $75,139, Drury said after he studied recent dealer listings. But he found that the list price for a 'used' Lightning with an average of 354 miles was a whopping $123,844.

and..

a 3-year-old Chevrolet Silverado is selling very close to its original sticker price. Were these normal times, the Silverado would have depreciated by 45% at least, but demand remains high for the pickup, especially among small fleet customers

[Richard]

I watched a video about a guy that received one of the first full size broncos before they stopped selling them because of the roof issues,he was offered $25k over what he bought it for.

The last time we saw this was when the PT cruiser came out,people were paying up to $20k over MSRP just to be the first.

I wonder if they learned from that one.

Same thing is happening in commercial construction equipment,the new stuff is so computerized and hard to get the parts for that the price of used has skyrocketed.

Go to Bring a trailer site,$30,000 for a 1976 Ford F-250 4x4.

[Zacha341]

Excellent information! Even 10+ year used cars are high now.

I had friend trying to find a used car for 5K that would have been doable for an older running car in 2018. Now most offerings in that range are either junk, salvage title, or tinker-mobiles [not disclosing as such] or VERY old cars that otherwise would value at only $1800 or so. We gave up -- I suggested she save more money to get into the 10K range first.

Many who have an old car, well running are holding on. We are. Or selling at a profit. Avoiding a car note or the problems some newer models have re. CVT transmissions, and hot-turbo problems that often short-circuit the life of too small ICE engines etc. Especially valuable are the durable, long-millage, strong runners such as several Toyota and Honda makes.

Used Toyota Tundra selling for near or the same prices as new!

[Richard]

^I kinda screwed up,I listed my 1947 chev truck for $7500,took a 2010 Camaro with 80,000 miles in on trade,listed it for $10k the same day and never even drove it,it sold within an hour and the next morning Carvana called and offered $18k for it site unseen.

When I was 16 bought a 1967 GTO for $250 running and driving,in the 90s a used Honda Accord with 180,000 miles was $3500 if it was clean,now it is like in order to get a decent car you have to pay 10k with a bunch of miles on it.

What is really interesting is when you drive by a high school parking lot and the majority of cars are brand new,by me anyways used truck prices are starting to come down though.

[Zacha341]

Highway vs. City stop-and-go makes a difference. If you buy from someone you know sometimes you find that out. And good maintenance.

A 2000 Honda Accord even if high miles [under 200K] can fetch an easy two grand if in excellent condition. An early 2005 mint Camry or Lexus can go for 5K even if over 200K miles. Depends on the style and features of course. And if maintained and not one of the plugs-burnt-oil-burning engine models. Those cars and many other specific makes are EXPECTED to go to 300K+ miles.

But rust is the big issue up here - sigh...:[[... Even then the parts can be sold.

...90s a used Honda Accord with 180,000 miles was $3500 if it was clean, now it is like in order to get a decent car you have to pay 10k with a bunch of miles on it.

[Sehv313]

Excellent information! Even 10+ year used cars are high now.

10+ year old cars have gone up since the Pandemic happened. People with Unemployment and Stimulus checks had more money than they'd ever seen in their lifetime and went on a shopping spree. Cars with little value were sold for top dollar and still are even to this very day.

[Richard]

Honda is in its own realm,here you can pick up a 05 to 2010 nice and under 150k between 5 and 8k.

We do not have rust unless you live beachside so you can have a 25 yo car with zero rust,it’s the heat that kills interiors and clear coat on the paint.

Its funny,a couple of spots of rust and it is considered rusted out and puts people off.

Its going to be interesting to see how what is happening now plays out,lots are keeping what they have longer and maintaining it verses buying new,so what happens when everything catches up and there is that pent up demand a couple of years down the road.

I found it cheaper to buy a 91 model truck and put all new mechanicals in it then it was to buy a newer model used with over 200k miles on it.

Thats what we see anyways,2 or 3 year old trucks on the lots with over 200,000 miles on them bringing premium prices,where before that would have knocked the value into the dirt.

[Zacha341]

Check that out! The Stimulus pays helped me but by no means far exceeded what I would have otherwise made.

One of my income streams ended for short gap so I lost out there as I was not able to able to claim unemployment as I was still under a contract. Oh-well. I still need to run out and get that giant flat-screen after a few more maintenance sessions to my oldie, but goodie used car.

Otherwise I've been working - virtually and in-person.

10+ year old cars have gone up since the Pandemic happened. People with Unemployment and Stimulus checks had more money than they'd ever seen in their lifetime and went on a shopping spree. Cars with little value were sold for top dollar and still are even to this very day.

[Zacha341]

Funny! We have variables re. car viability. From light surface rust in small areas like wheel-wells; body panel rust; more rust ala metal missing; and then there's dooms-day frame/ structural = A NO-GO! I always inspect cars from underneath where frame rust is otherwise hidden.

Then let's see if the heat works! AC sorta secondary on a really old car, but working heat is must for Michigan's very LONG winters!

Its funny,a couple of spots of rust and it is considered rusted out and puts people off.

[softailrider]

Sold my 2011 Honda Accord LX with 254,000 miles on it for 2400.00 to the 1st person who looked at it. This was one month ago. Vehicle had no body damage, good interior, looked good and was a good running car. I could have sold that car 100 times over. It's actually kind of sad, people just need transportation to get to work and they can't afford a decent vehicle.

I bought a new 2022 Camry LE for straight up MSRP + tax + 230.00 dealer fee+ plate fees. It killed me to do that, I've never paid MSRP for a car in my life. It's a vehicle I use for business, so it's a write off.

[Zacha341]

^ That 2022 Cammy [my favorite - also known as the Crown in Japan as Lexus's nifty little brother] should give you years of good service. As time goes on track reviews and anything problematic cited per reviews, per that year etc.

The new Toyota Camry's are certainly far more stylish then the older plain ones!

Great deal to whoever snagged your Honda Accord. I owned on. Loved it!

[Sehv313]

Check that out! The Stimulus pays helped me but by no means far exceeded what I would have otherwise made.

One of my income streams ended for short gap so I lost out there as I was not able to able to claim unemployment as I was still under a contract. Oh-well. I still need to run out and get that giant flat-screen after a few more maintenance sessions to my oldie, but goodie used car.

Otherwise I've been working - virtually and in-person.

And see that's the thing, the pandemic allowed working folk who always wanted to start a business the time and opportunity to do so. Think about it, Why not start a business when you're getting paid unemployment, stimulus, and now you have the time to start a work from home side-gig or a safe outdoor endeavor.

I've seen so many Detroiters stay at their job and work completely remotely or quit their jobs when it was time to go back to work and focus full time on their own businesses after the pandemic hit.

While you were working, alot of others on unemployment were working too, but for themselves this time.

[Zacha341]

^ I have multiple income streams [by necessity and desire] along with a job paying the benefits [smile]. The requirements of work during COVID provided training [still useful] in virtual/ video areas not a priority before. Along with learning some web content management here and there.

SO, in a way I kind did all what you mentioned sans being unemployed. Very few trust traditional employment now seeing clearly how draconian things went. It was best/ smart to learn some skills usable beyond that.

[GPCharles]

I bought my car out of my lease for $12,500.
The Kelly Blue Book value [[median number) was $23,000.

[Zacha341]

^ Smart. People are finding their way in this scene: to pay less or make a profit.