The sad state of the used car market

[Elwood 2000]

At "Joe's car lot" or whatever it was called, about 30 minutes from my house. You know, not a dealership, but a place that sells very inexpensive cars and trucks, usually ones with around or over 100k miles on them. He had two luxury SUV's there. One was an '02 Navigator, looked nice, low miles. What caught my eye was an '03 Escalade ESV (Suburban style Escy). Just under 30k miles, every option imaginable. Clean title, looked great. He was "asking" $34k and was begging me for an offer.

 

I am not really in the market, but this guy said these two high end luxo SUV's are killing him. He can't give these gas hogs away.

 

Am I in left field or are these Caddy's over $55k new?? I bet if I offered $29k or $30k, he would have jumped up and down with joy!

 

 

All I can say is, "It is a buyers market!".

[SilveradoWV]

I picked up my 2002 Chevrolet Silverado Crew Cab LS 2500HD 4x4 8.1L Allison not a spot anywhere inside, power windows, locks, etc.... Exterior was perfect, Westin step bars, Lebra Tonneau cover, bugshield, the rain guard things over the windows, bedliner, etc... Truck had 27,000 miles and the price tag was just over $20k. Im guessing this truck new is near $40k. The fact that its an 8.1L probably lowered the price instead of raising it.

[trout31]

Is there a good way to be certain its not a hurricane leftover? I would guess those vehicals will be showing up all over the place. A good clean-up job could hide quite a bit of damage.

[AirForceAngler]

Most likely the prices are due to the heavy discounts and rebates on new vehicles. It is hard enough right now for dealers to sell new trucks and SUVs with today's gas prices so the discounts trickle down to the used car market. I would for sure get a CARFAX report on any used car you're suspicious of, but when new car prices are discounted, used car prices have to follow.

[Elwood 2000]

I didn't really look that close, as I am really not that interested, but I had 5 minutes to kill and curiosity was getting the best of me. The other 14-16 cars on his lot total were not worth the price of the Escy. It just look out of sorts, so I had to check it out.

 

My guess is, he felt that he could hit a home run with both of them and they are sitting very still with winter priced gas here at $2.40 per gallon. Summer will definately be well over $3.00. I bet I could work him down to $28k if I wanted to, fairly easily.

[SnakeEyeSS]

Maybe its just where you guys live

 

I was just looking at, and drove a 2005 Cobalt SS Superchared. only 3,063 miles. I loved it, offered them 16K, window price was 19,998, and trade in is 15,500. he told me they got it as a GM sale(corporate or show car). after shooting back and forth for about 20-30 minutes, they price? still 19,998. wouldn't drop a cent, told me to start, they paid more than 18,000 for it, so 16K was out of the question. I priced one brand new for 21,900.

 

I told him I'd think abotu it can started to leave, he went off again, still at 19,900......so I left. he told me they'd call if they could drop it to 19 even.

 

 

Well, forget that, I'll just wait a few years, get a low mileage one for under 10, because plain and simple its a cobalt, SS or not, and it's cobalt resale is going to catch up with it.

 

** just checked autotrader, and the price is reasonable for the used market, but still, a new one is only a little more. so yeah I can wait, my 3 has a lot of life left**

[snyps]

I picked up my 2002 Chevrolet Silverado Crew Cab LS 2500HD 4x4 8.1L Allison not a spot anywhere inside, power windows, locks, etc.... Exterior was perfect, Westin step bars, Lebra Tonneau cover, bugshield, the rain guard things over the windows, bedliner, etc... Truck had 27,000 miles and the price tag was just over $20k. Im guessing this truck new is near $40k. The fact that its an 8.1L probably lowered the price instead of raising it.

 

<{POST_SNAPBACK}>

 

 

 

 

I got my 2002 2500HD Ex Cab Short box with 34,000, LT package 8.1 Ally for $18,500 plus $4,000 for a jeep worth at most $1,500. They were giving it away. I know the gas milage was going to be bad.. I just wanted the ally to plow with, they are indistructable.

[slemmer]

I've been hearing a lot of hurricane-damaged vehicles hitting some lots. Definitely worth running the VIN to see where the vehicle came from. Even look underneath the dash to check out the bare metal braketry to see if there is excessive corrison all over the place; even under the engine bay to see if the vehicle has been submerged.

 

The used car market is defintely a buyer's market. There's just too much supply out there, especially since the quality of newer cars are much better and last longer than before.

 

Gas consumption is secondary to me, especially if I need the truck for specific use such as plowing. You don't want to be left out with a breakdown because of am inferior equipped truck.

[Halen5150]

Maybe its just where you guys live

 

I was just looking at, and drove a 2005 Cobalt SS Superchared. only 3,063 miles. I loved it, offered them 16K, window price was 19,998, and trade in is 15,500. he told me they got it as a GM sale(corporate or show car). after shooting back and forth for about 20-30 minutes, they price? still 19,998. wouldn't drop a cent, told me to start, they paid more than 18,000 for it, so 16K was out of the question. I priced one brand new for 21,900.

 

I told him I'd think abotu it can started to leave, he  went off again, still at 19,900......so I left. he told me they'd call if they could drop it to 19 even.

 

 

Well, forget that, I'll just wait a few years, get a low mileage one for under 10, because plain and simple its a cobalt, SS or not, and it's cobalt resale is going to catch up with it.

 

** just checked autotrader, and the price is reasonable for the used market, but still, a new one is only a little more. so yeah I can wait, my 3 has a lot of life left**

 

<{POST_SNAPBACK}>

 

 

 

D@mn bro, that's crazy. For that price difference, they can keep the used one.

[Daubs]

I think the auto market is starting to feel the pinch. Manufacturers have been cutting prices through 0% financing, rebates, cash back, etc., for a number of years to boost sales. I believe they are flooding the market and driving prices down as a result.

 

And with fuel prices soaring I think we are going to see an ever so slight shift from the huge crew cab trucks to smaller, Colorado / Frontier / Tacoma sized trucks.

 

The one thing GM has going for it is the new Tahoe. I just read in magazine that it has best in class fuel economy and beats 30% of the smaller SUV market, including Ford Explorer! That is going to be one hot selling vehicle in today's market. Don't expect dealers to budge on prices for them new 07 Hoe's.

 

Will be interesting to see where this trent takes us. When ordering my 04 CC, I figured my 8.1 Big Block was going to cost me an extra ~$500 in fuel over my 01 Ext Cab 5.3. But I get four doors, DVD, XM, tons of towing capacity...well worth the trade off for me. I plan on holding this truck for quite some time (23k miles on it today). Very happy with my purchase.

[Elwood 2000]

Saw in an auto magazine today from a dealer near Chicago.

 

2006 Chevy Suburban Z-71, sunroof, DVD, Captains Chairs, Loaded.

 

MSRP $51000, our price $36,999 + 0% financing for 72 months!

 

Tell me the used market is not in the toilet! When they are giving away new rigs at good prices like this, the used ones are going to be cheap, especially with the new Suburbans to be on the lots in a month or two!

 

 

Also, my local Chrysler dealer has 0% for 60 months is Back!!

 

The "cycle" comes full circle! We will see employee pricing or red tag sales, or some type of "low price game" by summer!

[plainvanilla]

At "Joe's car lot" or whatever it was called, about 30 minutes from my house. You know, not a dealership, but a place that sells very inexpensive cars and trucks, usually ones with around or over 100k miles on them. He had two luxury SUV's there. One was an '02 Navigator, looked nice, low miles. What caught my eye was an '03 Escalade ESV (Suburban style Escy). Just under 30k miles, every option imaginable. Clean title, looked great. He was "asking" $34k and was begging me for an offer.

 

I am not really in the market, but this guy said these two high end luxo SUV's are killing him. He can't give these gas hogs away.

 

Am I in left field or are these Caddy's over $55k new?? I bet if I offered $29k or $30k, he would have jumped up and down with joy!

 

 

All I can say is, "It is a buyers market!".

 

<{POST_SNAPBACK}>

 

 

 

The truth be known, Mr Joe may have traded for or bought the cars wrong. Gave more for them than he should have, and then the market softened up. Big dealerships have that happen when the automakers roll out huge rebates and discounts like GM did last fall. Last fall, the local GM dealer here had 02 and 03 pickups with 40K miles, asking up to 16,900, heck I bought new for a little over 20K with the employee pricing. If I rememeber, they had about a dozen trucks that they were taking a bath in and when they could not take it any longer they ran them through the auction and took the hit.

Big dealerships can absorb those hits every now and then, unfortunatley, Joes corner lot can get buried quick and his floor plan (the standing loan the bank fronts him to carry inventory) is eaten up with 2 or 3 high dollar cars he can't sell, and he can't go buy more clean used good cars he can turn quicker.

 

It happens.....If you are going to be a good independent used car seller, you can't get caught like that too much.

[Elwood 2000]

If I was even remotely interested, I would see what I could get it bought for, but I hate to pull a guys chain when I am not really a buyer.

[Mark_in_Tulsa]

If I was even remotely interested, I would see what I could get it bought for, but I hate to pull a guys chain when I am not really a buyer.

 

<{POST_SNAPBACK}>

 

 

 

 

Why not? They pull our chains and wallets all the time

[Elwood 2000]

Why not? They pull our chains and wallets all the time tongue.gif

 

Yeah, but if the wife found out I was dealing on an Escalade ESV, she would call the guy and try to figure out how to trade me in on the deal!!!