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> When your back two tires hit the road outside of the dealership, the car is instantly worth 20% less. No longer the case. After cash for clunkers, the used m

> When your back two tires hit the road outside of the dealership, the car is instantly worth 20% less. No longer the case. After cash for clunkers, the used market is much more expensive than it used to be. If you're looking at reliable brands like Toyota/Honda a two-three year old (ex-lease?) model isn't even 20% off, and that has 15-20K miles on it. There's a reason why so many people are buying new, the used market is strange/irrational for some brands. And new vehicle incentives/lower APR loans/safety features etc make it a hard call. People should go check out a no-negotiation dealership (e.g. Carmax). You'll be surprised at current used prices compared to new.

ryan_j_naughton 8y ago
Your information is out of date. Cash for clunkers was a while ago. I work in the used car industry and across the board (on average) used cars depreciate at about 1.5% to 2% per month! Some are slightly better and some are worse, but the vast majority depreciate in that range.
- Someone1234 8y ago
  > Your information is out of date. I am shopping for cars right now, I'm talking about my current experience with the cost of recently used vehicles (specifically Toyota, Honda, and other reliable brands). > I work in the used car industry and across the board (on average) used cars depreciate at about 1.5% to 2% per month! Where can I buy these two year old vehicles that are 48% off? Or a three year old vehicle for 72% off? I'm seriously asking, link me to a 2017 Toyota Highlander Limited for $22K or a 2016 Limited for only $11K... Locally a 2017 Toyota Highlander Limited is $32K with 65K miles on it. Or $36K with under 20K miles, that's a two year old likely ex-lease vehicle that has a 15% discount, but a higher APR, worse features, higher maintenance costs, diminished warranty, and a lower resale value. The current used market is highly irrational right now. Your imagined used market where cars are 48% off after only two years sounds fantastic, but that isn't the reality on the ground.
  - ryan_j_naughton 8y ago
    > Where can I buy these two year old vehicles that are 48% off? Or a three year old vehicle for 72% off? I'm seriously asking, link me to a 2017 Toyota Highlander Limited for $22K or a 2016 Limited for only $11K... You misunderstand what 2% depreciation means per month. 2 years at 2% would be: 1 - (0.98^24) ends up at 38.4% off, not your 48%. 3 years at 2% would be: 1 - (0.98^36) == 51.6%, not your 72%. The reason obviously being that 2% off monthly means that the 12th month's 2% is a lower dollar amount that the first month's 2%. This is also intuitively true since a vehicle depreciates more steeply at the beginning and less over time in total dollar terms. Also I said 1.5 to 2%. At the 1.5% end of the range, a vehicle at 3 years is: 1 - (0.985^36) == 41.9%.
    - Someone1234 8y ago
      > 2 years at 2% would be: 1 - (0.98^24) ends up at 38.4% off, not your 48%. > 3 years at 2% would be: 1 - (0.98^36) == 51.6%, not your 72%. Can you link me to a 2017 Toyota Highlander Limited for $26K or a 2016 Limited for $21K? Because I cannot find either one. New figures, old figures, it still doesn't remotely match reality. Used vehicles don't exist at the price points you claim they exist at. Even at 65K miles, we're talking over $31K. You're off by a huge margin. You said: > Your information is out of date. Pretty sure you have that backwards. If you look at the used market it isn't remotely like what you've claimed twice now.
- panarky 8y ago
  Please let me know how I can buy a used car from you. I'd love to buy a one-year-old car for 24% less than new.
freeopinion 8y ago
Not too long ago I did the rounds of dealerships. Each new car dealership had a corner of their lot for used cars. It was a head-scratcher to me to repeatedly note the same model cars in the used corner that were two years old, but cost $1-2K more than their brand new counterpart three rows over. Even with a little effort to control for features, I couldn't reconcile the price difference. I challenged a few salesreps. They just shrugged their shoulders.
Spooky23 8y ago
This is 100% true. My sister sold a piece of junk Subaru that had a defective engine which was replaced twice for like 85% of what she paid two years prior.
- sliken 8y ago
  Subaru's do have high resale. People that buy Subarus tend to keep them. Mine is 14 years old, 150k miles, and doing great.
  - Spooky23 8y ago
    I would normally agree... also unbeatable cars in the snow. Some of the 14-15 models had defective engines, and the car I was referring to was one of those.
panarky 8y ago
> You'll be surprised at current used prices compared to new I've tried two times to buy a used car at Carmax, only to find the same model with the same features for less brand new. I don't understand this market. Who would ever buy used for more than new?

ryan_j_naughton 8y ago

Your information is out of date. Cash for clunkers was a while ago. I work in the used car industry and across the board (on average) used cars depreciate at about 1.5% to 2% per month! Some are slightly better and some are worse, but the vast majority depreciate in that range.

Someone1234 8y ago
> Your information is out of date. I am shopping for cars right now, I'm talking about my current experience with the cost of recently used vehicles (specifically Toyota, Honda, and other reliable brands). > I work in the used car industry and across the board (on average) used cars depreciate at about 1.5% to 2% per month! Where can I buy these two year old vehicles that are 48% off? Or a three year old vehicle for 72% off? I'm seriously asking, link me to a 2017 Toyota Highlander Limited for $22K or a 2016 Limited for only $11K... Locally a 2017 Toyota Highlander Limited is $32K with 65K miles on it. Or $36K with under 20K miles, that's a two year old likely ex-lease vehicle that has a 15% discount, but a higher APR, worse features, higher maintenance costs, diminished warranty, and a lower resale value. The current used market is highly irrational right now. Your imagined used market where cars are 48% off after only two years sounds fantastic, but that isn't the reality on the ground.
- ryan_j_naughton 8y ago
  > Where can I buy these two year old vehicles that are 48% off? Or a three year old vehicle for 72% off? I'm seriously asking, link me to a 2017 Toyota Highlander Limited for $22K or a 2016 Limited for only $11K... You misunderstand what 2% depreciation means per month. 2 years at 2% would be: 1 - (0.98^24) ends up at 38.4% off, not your 48%. 3 years at 2% would be: 1 - (0.98^36) == 51.6%, not your 72%. The reason obviously being that 2% off monthly means that the 12th month's 2% is a lower dollar amount that the first month's 2%. This is also intuitively true since a vehicle depreciates more steeply at the beginning and less over time in total dollar terms. Also I said 1.5 to 2%. At the 1.5% end of the range, a vehicle at 3 years is: 1 - (0.985^36) == 41.9%.
  - Someone1234 8y ago
    > 2 years at 2% would be: 1 - (0.98^24) ends up at 38.4% off, not your 48%. > 3 years at 2% would be: 1 - (0.98^36) == 51.6%, not your 72%. Can you link me to a 2017 Toyota Highlander Limited for $26K or a 2016 Limited for $21K? Because I cannot find either one. New figures, old figures, it still doesn't remotely match reality. Used vehicles don't exist at the price points you claim they exist at. Even at 65K miles, we're talking over $31K. You're off by a huge margin. You said: > Your information is out of date. Pretty sure you have that backwards. If you look at the used market it isn't remotely like what you've claimed twice now.
panarky 8y ago
Please let me know how I can buy a used car from you. I'd love to buy a one-year-old car for 24% less than new.

freeopinion 8y ago

Not too long ago I did the rounds of dealerships. Each new car dealership had a corner of their lot for used cars. It was a head-scratcher to me to repeatedly note the same model cars in the used corner that were two years old, but cost $1-2K more than their brand new counterpart three rows over. Even with a little effort to control for features, I couldn't reconcile the price difference. I challenged a few salesreps. They just shrugged their shoulders.

Spooky23 8y ago

This is 100% true. My sister sold a piece of junk Subaru that had a defective engine which was replaced twice for like 85% of what she paid two years prior.

sliken 8y ago
Subaru's do have high resale. People that buy Subarus tend to keep them. Mine is 14 years old, 150k miles, and doing great.
- Spooky23 8y ago
  I would normally agree... also unbeatable cars in the snow. Some of the 14-15 models had defective engines, and the car I was referring to was one of those.

panarky 8y ago

> You'll be surprised at current used prices compared to new I've tried two times to buy a used car at Carmax, only to find the same model with the same features for less brand new. I don't understand this market. Who would ever buy used for more than new?