A flood of Repos

gcode · July 26, 2022, 05:51 PM

QuoteThere has never been a worst time in the last 30 years to buy a vehicle. Within the span of 2 years, cars went from being the largest depreciating asset one owned, to doing better than most of our stock portfolios, and I'll explain exactly why.
To get a better understanding of the insanity which is the car market, lets start with a number that we're all familiar with: 9.1% (CPI for June). New & used cars are a large portion of that. New vehicles rose 11% yoy and used cars 7.3%.
But percentages don't do a good job at painting the whole picture so here are the raw numbers: 2 years ago: Average new car: 38k, Average used car: 20k. So what about 2022? Average new car: 50k (+24%)Average used car: 31k (+35%)[

A friend recently got his paid for KIA totalled by a hit and run
His insurance company raped him and the Honda dealer raped him for a low ball Civic.

YoDoug · July 27, 2022, 05:24 AM

You really have to look a lot and be ready to act fast to find a deal these days. The used car market is ripe with small dealer car-flippers that buy anything reasonably priced and mark it up a grand or two.

I saw another article that said repos were climbing at the fastest rate since 2009. A lot of people bought cars in the last couple years because they had extra cash from stimulus and bought at inflated prices. Now that the Stimis are not coming in and inflation is hitting hard, they just stop paying and wait for the repo man to come.

Between repos and increased lending rates, the car market should start to come down in coming months.

mkd · July 27, 2022, 06:42 AM

A coworker tightened up his budget and got rid of a car that was not absolutely needed.
Late model with payments, carvana gave him $1000 to walk away.
Times gone by you'd be looking at a taking a $5k bath, minimum.

gcode · July 27, 2022, 06:44 AM

Quote from: mkd on July 27, 2022, 06:42 AMcarvana gave him $1000 to walk away.

and they probably resold it the same day for 3 or 4K more.

One good thing... there are going to be some real bargains to be had in 6 months to a year

mkd · July 27, 2022, 06:49 AM

Just ran my 2019 Honda with 40k on the clock through KBB.com

Trade in value is what I paid for it, private party sale is more than I paid for it. I feel extra nice for the 3% finance that I haggled over, with real inflation well into double digits.
Thanks Obama 3.0!!!!!!

mkd · July 27, 2022, 06:55 AM

Quote from: gcode on July 27, 2022, 06:44 AMand they probably resold it the same day for 3 or 4K more.

One good thing... there are going to be some real bargains to be had in 6 months to a year

Fund manager Cathy Wood has been warning of a deflationary cycle as inventories surpass demand on the way into current recession.
Hasn't hit the car market yet. But 8 months ago that same car quoted above would have went for $5k more than I paid for it. So yes, the trend is clear.

Retailer Target is reportedly letting customers keep the products they've asked for a refund on. And they're slashing prices to move the supply glut.

Del. · July 27, 2022, 07:15 AM

Cost of my 3 yr old Ram truck was double what I paid for a 3 yr old GMC back in 2012.

gcode · July 27, 2022, 07:32 AM

My wife's employer just bought one of the foremen a new work truck
A 2022 ~~Dodge~~ Fiat Ram 4WD crew cab $88 thousand fking dollars !!!!

mkd · July 27, 2022, 08:15 AM

With 25% tariff on imported pickup trucks, it's the only market the criminal cabal of dems, UAW, and gov't motors can compete in. And at ridiculous per vehicle margins. The DOJ could RICO act the hole cesspool if they wern't part of it.
GM sells 10x the cars of TSLA but has the same net income. bailout in 3...2...1

mkd · July 28, 2022, 09:06 AM

Hmmm
Honda dealer lot is mostly empty. Looked to only have 20 used cars.

BrianP. · July 28, 2022, 10:42 AM

Quote from: mkd on July 27, 2022, 06:49 AMJust ran my 2019 Honda with 40k on the clock through KBB.com

Trade in value is what I paid for it, private party sale is more than I paid for it. I feel extra nice for the 3% finance that I haggled over, with real inflation well into double digits.
Thanks Obama 3.0!!!!!!

Same here with my 2019 Jetta GLI. The only difference is I got 0 percent interest. 😛

CNCAppsJames · July 29, 2022, 10:24 PM

My father In-Law passed away in January. He had a BMW 320i that had high miles but was in good condition and maintenance was kept up... my wife got $10k for it in March.

Last October HIGH KBB was $6500. 😲