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Discussion Starter · #1 ·
Is it the price of new cars? Is it income? Is it the fact that cars are lasting longer than ever, thus making used cars great purchases?

What's it going to take for the market to slow down? Whether it be trucks or sought after cars, even SUV's, people are paying more and more for used vehicles and they're selling as fast as they can be listed.
 

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It's not the price of new cars. It's the fact that manufacturers are not building as many as they use to. When the new car market is flooded again, there will be a lot more incentives which will bring used car values down. It will not happen for another year, at least
 

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Planters (fasciitis) peanuts. Dang dogg
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I was at my old dealer today to work out a few things, and I ran into my old boss. Market is insane, we all know it, and he's thinking it'll calm down over the summer. I'm with Dandbest. Nothing is running at the auctions, and book is climbing like nuts. I'm guess it's a year before it corrects.
 

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The microchip shortage, ramping up from Covid manufacturing shutdowns, and the public buying used cars vs taking public transportation are all fueling the used car market. I also think the fact that since new car design is sooooo evolutionary, people are just opting for the CPO cars, instead of the more expensive, but similarly styled new car. Although it’s not a new model, but can you imagine paying full price for a new Mk 7 GTI, when you can buy a very similar used Mk 7 for $18K? I bought a used Mk 7 for $12K vs buying a new one 😂
 

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Discussion Starter · #6 ·
I didn't consider the lack of new cars on lots. Good points, supply chain doesn't recover from a pandemic in a few months. This is going to take a while.
 

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Supply is down because 1. it's tough to run factories during the pandemic, and 2. they all rely on throughput from each other and fall like a house of cards with supply chain disruption.

Demand is high because 1. people are bored and 2. there's stimulus money raining down from multiple directions.

Now, when the prices get back to normal? Actually I think they already are. Literal trillions of dollars injected into the economy. The effects of that will fade, but as it does, I expect (and hope!) inflation will take it's place, both naturally and by design. If prices go down but the money printer went 'brrr,' when they were high, it's essentially deflation, in which case it's going to be WAY harder to pay ourselves back. I'm not saying one should avoid the dollar or that we'll see hyperinflation, but I 100% believe a decent but reasonable amount of inflation is far preferable to markets deflating.
 

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Holy ****.

2015 Accord Sport.....$20,590!


My new 2017 Accord Sport SE was $23K, NEW!

Just a month ago when we were looking for a Highlander, I could plug in "2018 Highlander" in Carmax and get hundred results within 50 miles of me. Today....one, in 100 mile radius.
 

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It's not the price of new cars. It's the fact that manufacturers are not building as many as they use to. When the new car market is flooded again, there will be a lot more incentives which will bring used car values down. It will not happen for another year, at least
I feel like manufacturers have finally got the clue that market share at all costs is a stupid idea. I think the era of flooding the car market is over. The deluge of off lease cars over the last.... decade? Was a lot for everyone down the line to deal with. I feel like everyone- except the customer- is happier matching supply to demand. It just makes sense
 
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I feel like manufacturers have finally got the clue that market share at all costs is a stupid idea. I think the era of flooding the car market is over. The deluge of off lease cars over the last.... decade? Was a lot for everyone down the line to deal with. I feel like everyone- except the customer- is happier matching supply to demand. It just makes sense
Nah, they're not that smart. The reason there is a shortage is the lack of computer chips currently. As soon as they have parts to build eleventy billion cars again, they will. Just to give you an idea, I have 3 S60s in stock that will have to "last" me until July as Volvo diverted all resources of chips to the suvs and shut down the SC plant.
 

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Opinion: It isn't new cars, it's because people are still worried about everything and not trading in their cars for new fancy stuff. Therefore, it's a lack of used car inventory causing the increase.
 

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Another potential contributing factor - based on my expert :ROFLMAO: personal observations driving around New England on various days of the week and at varied times during COVID......it just seems like there are a lot more people on the road that are not used to driving....which leads me to believe there are a lot of folks who perhaps previously took public transit that went out and bought used cars, due to COVID risk or reduced public transit service during COVID
 

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Another potential contributing factor - based on my expert :ROFLMAO: personal observations driving around New England on various days of the week and at varied times during COVID......it just seems like there are a lot more people on the road that are not used to driving....which leads me to believe there are a lot of folks who perhaps previously took public transit that went out and bought used cars, due to COVID risk or reduced public transit service during COVID
I think that's very sound logic also.
 

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Covid supply chain delays, people moving out of cities buying cars for the 1st time, inflation, stimmys. The supercar/hypercar market is probably a little different and being impact more by the global warming rhetoric and manufactures moving away from ICE.
 

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I feel like manufacturers have finally got the clue that market share at all costs is a stupid idea. I think the era of flooding the car market is over. The deluge of off lease cars over the last.... decade? Was a lot for everyone down the line to deal with. I feel like everyone- except the customer- is happier matching supply to demand. It just makes sense
Some of problem is that factories can't be turned on and off easily. Plants that aren't run at full capacity aren't profitable. Incentives cut into profit but it's typically less than the cost of not utilizing the plant fully.
 

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It's very tempting to cash out the way the market is, but then you have to find something else you really want that you can afford.
This is exactly what I did a month ago. Took the opportunity to dump my CC at CarMax and picked up my Cup Edition.
 

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My opinion is that it won't "chill out". It will stay this way until we stop noticing because inflation has caught up to it. (Hopefully)
 

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It's driven first and foremost by the lack of new vehicle inventory. Until the chip shortage gets sorted out, the used market will be out of control. It's been compounded by ridiculous interest rates and stimulus/tax money all hitting at the same time, but the root cause is lack of new vehicles.

At our group we generally carry 300-350 new vehicles between our three buildings. We are down to 79 at the time I am typing this. What are you going to do when you can't buy the new vehicle you want because no dealer within a 800 mile radius has one? You're going to find the nicest used one you can, and will pay a premium to get it.
 
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