The car loan defaults are sky rocketing. So when thousands of cars are repossessed the prices will crash very much lower.
Hold off buying a car for the next few months and you will be able to get amazing bargains.
The prices are spiking now but they will crash hard very soon. Loans will be very hard to get as the lenders take a beating on the loans they made on cars that aren't worth the money.
it's not temporary. the real reason used car prices are up is because new cars aren't being produced in major numbers, leaving a million people who would buy a new car buying used cars instead.
It's temporary and it's not. Right now it's due to the chip shortage; the manufacturers have large lots full of nearly-complete vehicles just waiting for computers. But they've curtailed manufacturing this year until those get finished and sold off. As a result we're not going to see a glut. Further, inflation is rapidly pushing up the prices up to and past the stupid premiums dealers are currently charging. Used car prices will drop but they likely won't crash.
Think it is starting. Live in suburban LA, and Friday (15th) I witnessed four different flatbeds looking for vehicles along a 10 minute trip from the store back home.
I cannot think of another reason they'd all be out on the same day. No parking rules or temporary "no parking zones" either.
[ - ] HeyJames 1 point 2.8 yearsJul 17, 2022 15:30:23 ago (+1/-0)
Yes and no. A lot of new cars past 2020 don't have a ton of replacement parts. A lot of older cars are much more reliable and don't have much electronics that fail. Those that do, can be found in the junkyard for cheap. In the example here particularly these old Tacoma were skyrocketing in value even before covid. They're something of a collectors car. However you are correct in that used vehicles 5 years old or newer will plummet drastically. That is my hope as I may need to add another truck to my fleet within the next year and am not going to pay 45k for a 4 year old 100k mile truck.
Realistically a 2012 Tacoma was NEVER $4000, EVER! The cars today are over priced but can you get a new one? Pay a premium. I sold my Tacoma for near sticker five years later with 60,000 miles on it. Currently, Ford is producing all cars in total 25% of total F150's Ram took 2022 off.
So yea, the used car market has been nutty for over a year. Ford/Chevy/Ram has near 1.5 Million vehicles that need Microchips. Will they be sold when they get them? Or will they be destroyed.
The word is they will get destroyed due to the Warranty issues these Trucks will have. They have been sitting in the environment with rats and squirrels living in them.
Wow, that's like something straight out of Econ 101 detailing the dangers of just-in-time manufacturing: one little hiccup in the supply chain and you're suddenly drowning in product that can't be brought to market.
Heaven forbid they rework it to not use so many chips. I'm guessing that it isn't i2c chips that they can't get, more likely it is things like "drive assistance", "gps tracking", "black box", etc.
Also, it isn't claiming that a 2012 was $4k, it is saying an older tacoma was $4k in 2012.
In those pictures they were driven to those spots, right?
That is a Gen 1 taco so it’s pre 2005. If it’s a 4 cylinder it likely wasn’t worth over $4000 in 2012 depending on normal variables. Same truck would be worth double now, minimum… My 05 taco was purchased for $14k 7-8 years ago with 125k miles. It has 225k on it now and the deal is BEGGING me to trade it in on a new one- offering me something like $15k trade value. I have no interest in a new truck with the remote shut off and data collection capabilities. Plus I work on my truck myself, with help from a mechanic friend, and have little problem getting parts.
[ + ] GeneralDisarray
[ - ] GeneralDisarray 8 points 2.8 yearsJul 17, 2022 14:07:21 ago (+8/-0)
The car loan defaults are sky rocketing. So when thousands of cars are repossessed the prices will crash very much lower.
Hold off buying a car for the next few months and you will be able to get amazing bargains.
The prices are spiking now but they will crash hard very soon. Loans will be very hard to get as the lenders take a beating on the loans they made on cars that aren't worth the money.
[ + ] Spaceman84
[ - ] Spaceman84 4 points 2.8 yearsJul 17, 2022 14:12:41 ago (+4/-0)
[ + ] GeneralDisarray
[ - ] GeneralDisarray 0 points 2.8 yearsJul 18, 2022 13:49:13 ago (+0/-0)
Many loan providers will be screwed.
[ + ] Empire_of_the_Mind
[ - ] Empire_of_the_Mind 4 points 2.8 yearsJul 17, 2022 15:06:02 ago (+4/-0)
[ + ] o0shad0o
[ - ] o0shad0o 0 points 2.8 yearsJul 17, 2022 18:50:29 ago (+0/-0)
[ + ] bobdole9
[ - ] bobdole9 2 points 2.8 yearsJul 17, 2022 16:30:48 ago (+2/-0)
I cannot think of another reason they'd all be out on the same day. No parking rules or temporary "no parking zones" either.
[ + ] GeneralDisarray
[ - ] GeneralDisarray 1 point 2.8 yearsJul 18, 2022 13:51:46 ago (+1/-0)
Loans on cars that aren't worth the amount of the loan. Guaranteed losses for the banks.
[ + ] HeyJames
[ - ] HeyJames 1 point 2.8 yearsJul 17, 2022 15:30:23 ago (+1/-0)
[ + ] EAT_MY_ASS_FUCKFACE
[ - ] EAT_MY_ASS_FUCKFACE 0 points 2.8 yearsJul 20, 2022 20:05:22 ago (+0/-0)
[ + ] RedBarchetta
[ - ] RedBarchetta 3 points 2.8 yearsJul 17, 2022 17:03:55 ago (+3/-0)
So yea, the used car market has been nutty for over a year. Ford/Chevy/Ram has near 1.5 Million vehicles that need Microchips. Will they be sold when they get them? Or will they be destroyed.
The word is they will get destroyed due to the Warranty issues these Trucks will have. They have been sitting in the environment with rats and squirrels living in them.
https://files.catbox.moe/k6galr.png
https://files.catbox.moe/v8gdbn.jpg
https://files.catbox.moe/83z0eg.jpg
[ + ] La_Chalupacabra
[ - ] La_Chalupacabra 2 points 2.8 yearsJul 17, 2022 22:44:00 ago (+2/-0)
[ + ] GoldenAgeWhen
[ - ] GoldenAgeWhen 0 points 2.8 yearsJul 17, 2022 19:56:08 ago (+0/-0)
Also, it isn't claiming that a 2012 was $4k, it is saying an older tacoma was $4k in 2012.
In those pictures they were driven to those spots, right?
[ + ] Steelerfish
[ - ] Steelerfish 0 points 2.8 yearsJul 18, 2022 11:06:33 ago (+0/-0)
My 05 taco was purchased for $14k 7-8 years ago with 125k miles. It has 225k on it now and the deal is BEGGING me to trade it in on a new one- offering me something like $15k trade value.
I have no interest in a new truck with the remote shut off and data collection capabilities.
Plus I work on my truck myself, with help from a mechanic friend, and have little problem getting parts.
[ + ] Doglegwarrior
[ - ] Doglegwarrior 3 points 2.8 yearsJul 17, 2022 16:24:15 ago (+3/-0)
[ + ] bobdole9
[ - ] bobdole9 2 points 2.8 yearsJul 17, 2022 16:32:31 ago (+2/-0)
[ + ] Empire_of_the_Mind
[ - ] Empire_of_the_Mind 3 points 2.8 yearsJul 17, 2022 15:05:08 ago (+3/-0)
[ + ] ArnoBreker
[ - ] ArnoBreker 0 points 2.8 yearsJul 17, 2022 16:45:43 ago (+0/-0)
[ + ] FacelessOne
[ - ] FacelessOne 2 points 2.8 yearsJul 17, 2022 15:00:57 ago (+2/-0)
[ + ] GeneralDisarray
[ - ] GeneralDisarray 1 point 2.8 yearsJul 18, 2022 13:55:13 ago (+1/-0)
[ + ] con77
[ - ] con77 0 points 2.8 yearsJul 17, 2022 15:40:32 ago (+0/-0)
[ + ] FacelessOne
[ - ] FacelessOne 0 points 2.8 yearsJul 17, 2022 17:01:04 ago (+0/-0)
[ + ] Anus_Expander
[ - ] Anus_Expander 0 points 2.8 yearsJul 17, 2022 18:58:32 ago (+0/-0)
[ + ] Name
[ - ] Name 0 points 2.8 yearsJul 17, 2022 20:18:51 ago (+0/-0)
[ + ] o0shad0o
[ - ] o0shad0o 0 points 2.8 yearsJul 17, 2022 18:47:38 ago (+0/-0)