Used car market drying up?

[rc2002]

I've noticed there are a lot more cars being listed for sale, not only here on beyond but in other places as well. A lot of them have very fair asking prices close to black book and still aren't moving. Many people I know have resorted to trading their cars in because they can't move their car at all.

Anyone else notice this? Is it due to the exchange rate causing people to import cars, and manufacturers to lower prices and offer incentives for brand new cars? Or is just too much money in this city? Is it partly due to gas prices?

Any thoughts?

[bobby_lu]

Bone dry...and people asking too much because they havent realized how little their cars are available for elsewhere.

So many private for sale ads on the roads these days.

[Redlyne_mr2]

There are massive amounts of cars still coming in from the US. This has absolutely killed the value of used cars both newer and older. With all the subventive interest rates and attractive lease programs it can often be more affordable to buy a brand new car. Because of the recent drop in car pricing people who purchased a car 2 - 5 years ago are also trying to sell their own cars to take advantage of the newly reduced pricing. This of course causes a huge amount of supply in the market. Used BMW's are especially hard to sell right now because you can buy a used bimmer from a bmw dealership for .9% financing.

[max_boost]

Yeah I have noticed that too.

My cars are always up for sale because I love to switch it up. I feel that I am asking a fair price. However I am not motivated or desperate to sell them so I won't lower my price very much. Plus my cars are only two years old, lower mileage and having just financed off the depreciation, every payment I make right now puts me in an equity position so I am in no hurry to sell.

[BigMass]

-%0 interest rated on new car finance and leases

-weakness of the US dollar causing people to buy used in the US.

-Economy is good people want new cars, economy is bad people want $3000 civics. No room for the middle of the pack.

I had a hell of a time selling my S2000 recently. The buyer got a really good deal on it. However, i got a really good deal on the used car i bought so it evened out.

It's definitely a buyers market.

[blownz]

Black book values have been dropping like crazy lately. Ever 2 weeks when the new book is out things are dropping. Really bad for trucks and suv's.

[max_boost]

Originally posted by Redlyne_mr2
Used BMW's are especially hard to sell right now because you can buy a used bimmer from a bmw dealership for .9% financing.

Not to mention extended warranties up to 6 years and 120,000kms!

[Thaco]

i hope resale keeps dropping... i was down in LA last week and their used cars are Crazy cheap... 3 year old trucks for like $15000


soon we're gonna be like the US, lease for 2 years, trade it in... it'll be good for people like me who don't mind a used car and want to one day OWN my vehicles, not just make never ending payments.


the interest rate is probably to blame, people can get cheap or free interest for new vehicles.

[Klobi-1-Kinobi]

I've noticed new vehicles which get poor milage seem to be much cheaper than they were just a year or two ago. 08 srt8 charger-$36xxx, 08 ram 4x4 hemi 1500-$25xxx, a couple examples.

[Toms-SC]

Yup yup, a perfect storm is in the making.

[Redlyne_mr2]

Originally posted by Thaco
i hope resale keeps dropping... i was down in LA last week and their used cars are Crazy cheap... 3 year old trucks for like $15000


soon we're gonna be like the US, lease for 2 years, trade it in... it'll be good for people like me who don't mind a used car and want to one day OWN my vehicles, not just make never ending payments.


the interest rate is probably to blame, people can get cheap or free interest for new vehicles.

We dont have the population to sustain car market like theirs.. the new sellings prices are still way to high here to get the used prices down that much of a low value.

[Masked Bandit]

I don't know if it's really the low interest rates. Most of the domestic guys have been offering 0% in the summer / fall since about 1999.

My guess is that it has to do with the flood of US vehicles.

[rc2002]

Good point about the 0% on the domestics. But the imports - Honda and Toyota especially - have taken a bigger market share and are now offering their lowest rates ever. So that's got to help.

Like Ryan said, the cars are more affordable these days than they've ever been. You can step into one for a couple hundred dollars a month. So they've really bucked the inflation trend - some cars like the Corolla actually cost less than they did 10 years ago. Couple that with the high household income and it makes for a good storm.

The market has also gotten bigger in Calgary. There's more people and therefore a larger market.

[Thaco]

Originally posted by richardchan2002
Good point about the 0% on the domestics. But the imports - Honda and Toyota especially - have taken a bigger market share and are now offering their lowest rates ever. So that's got to help.

True, if it weren't for the 0.9% (3 year term), No payments for 90 days, Zero down, Honda gave me on my 04 civic, I'd have never even considered buying a newish car.

[badatusrnames]

... and people are still asking 13K for their '96 civic.

[QuasarCav]

Originally posted by badatusrnames
... and people are still asking 13K for their '96 civic.

or 12K for a 91 MR2 with 'quirks'.

[heavyD]

Calgary used car pricing has been grossly inflated for a while and now with the population growing so fast there is saturation.

[legendboy]

Originally posted by heavyD
Calgary used car pricing has been grossly inflated for a while and now with the population growing so fast there is saturation.

I agree, i think its good for most of us that the prices are dropping anyways.

Less of an investment is always nice.

[A790]

Originally posted by QuasarCav



or 12K for a 91 MR2 with 'quirks'.

Straight up. You want it?

[redline]

I hope it gets worse, i want to buy an FX45 for a winter beater....

But i sold my G35 in two days with one phone call, i think i priced it fair in the market of today and it sold quickly...