Watching Used Car Prices Fall - Dealers are Taking a Bath

[tony1963]

For premium vehicles, the market decline has been > 20%.  So, that $40k once-valued higher end used car now is worth about $32k, the $30k vehicle now about $24k.

That's enough of a loss that many dealers who subscribed to floor planning their inventory are going to find themselves OUT OF BUSINESS.  I've watched this many times.

And, keep in mind, that once you bail on a floor plan, all of the shareholders of the business end up in a database and they can NEVER get floor planning again.  While I have never floor planned anything, I know dealers who folded up and tried to get re-established under a new business entity.  The floor planning people caught up with their past and DECLINED to write any floor planning.

As the bottom drops out, so does the equity remaining in those dealerships.  

[alcoforever]

And what does this have to do with ebay?

[ed8108]

Declining sales

Higher fees, new revenue streams, has helped keep ebay profitable

[tony1963]

In case you were not aware, this is a "motors" board and the topic applies to motor vehicles.

[kensgiftshop]

It's about time prices start dropping for used vehicles.

Maybe they realized people aren't going to pay those high prices for used vehicles and if they want to sell them, they have to drop the prices.

[soh.maryl]

That does not seem to be the case in my area.  Used cars are pretty high priced, evidently due to the difficulty of getting new ones quickly.  

[varebelrose]

Used vehicles in my area are priced easily 25 to 40% above blue book value. Dealers cannot fill their used car lots, as many people are choosing to keep their old cars instead of breaking the budget to buy a new one. This will only get worse as dealers are forced to inventory EVs that nobody wants. Right now my 2013 F150 with 100,000 miles is worth more than I paid for it in 2017 with 45,000 on it.... seriously, I have turned down offers.

And you better believe the local property tax bills are keeping up with those inflated values (grrrrrr...)

[tony1963]

I'm watching a few prime locations here when the current operator folds and goes bankrupt.  Then, I'll move in and buy the location.

Gonna be a great day!

[kensgiftshop]

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@soh.maryl wrote:

That does not seem to be the case in my area.  Used cars are pretty high priced, evidently due to the difficulty of getting new ones quickly.  

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It's the same way around here.

They want new prices for 10 to 15 year old vehicles.