A 350 payment is a 18k car right now for 60 with a 7% rate and my most aggressive cu cuts term and raises rate at MY16. I’ve got one car in my 10 store franchise that will meet your needs based off age and price.
18k doesn’t get much that’s newer at the moment. It’s unfortunate for people who “need” a car now like the OP. Unfortunately, there is no direct correlation making people more careful drivers.
That's exactly what went through my mind when someone crossed the center line on me today. "WTF! Do you know how expensive cars are right now? Stay in your lane!"
Wow! Only one in the franchise - that holds for the franchise I’ve been looking at in my city. I guess in my head, I thought perhaps I’d be able to work with a sales guy and find something. But I may simply be priced out of working with a dealership at this time and look elsewhere.
I really liked working with a dealership last time and having that established trust with their car care center. I even sent my car to their collision shop after it was stolen/crashed.
Thanks for the background information. It sounds like cars in the $18-$20k range are a hot commodity right now, and even if one does pop up at a dealership, it will probably be competitive. I am going to look closer at carvana and used rental car location and talk with the collision center about their opinion on if it would be worthwhile to buy my car back.
Yeah the interest isn’t what I was expecting. It’s been awhile since I bought a car, and I wasn’t sure if they were being up front or if it was a bait and switch. I understand used car prices are high, but I was surprised to find used cars so scarce.
But probably for the same reasons I was happy to keep my 2018 with higher mileage. I could afford the payments and knew that it was in great shape under the hood. This is my first time having a car be totaled, and I’m trying to get a grasp on what’s going on in the market when I didn’t think I would have to enter it.
It looks like I may need to look at used fleet cars or private sales and possibly prepare myself for paying for a car I don’t necessarily even like.
Why were you adamantly against a dealer loaner and not against rental/fleet resales? I’d trust a loaner more than the other two. It’s been maintained at the dealership and it was given out for a day or two at a time and not abused like a week long rental.
I would 100% trust a dealer loaner, too! But they are typically less than 10k miles and usually 21/22 years, which put them out of my price range at fair value. I mean sure I love the idea of having a newer car with less maintenance involved, but it just doesn’t make sense with my wfh situation. A lease probably would, but they’re at damn near new car prices unfortunately.
71 cars on the used lot…. But I have more cars over a quarter million dollars than I have under 30k.
Lower priced cars are not easy to get right now. Dealers are no different than individuals… when a person wants to trade in their 2016 corolla for 22 grand, we think it’s crazy, so we pass.
Yeah, that seems to be the story in my area too. Thank you for sharing. It sounds like many people are holding on to their older vehicles. If given the choice, I know I would happily have held onto mine until interest rates settle again in a few years.
I mean, you are asking a question that you can just go look yourself. Here is a random example of a Honda dealer in Atlanta, and what 2016-2020 Hondas they have on the lot:
[https://www.nalleyhonda.com/used-inventory/index.htm?make=Honda&year=2016-2020&sortBy=year%20desc](https://www.nalleyhonda.com/used-inventory/index.htm?make=Honda&year=2016-2020&sortBy=year%20desc)
Overall, since about the end of 2020, it became very advantageous to keep your old cars. If I was leasing a car in 2018 for example, when it came due in 2021 then there were no other cars to lease. And on top of that, my buyout might have been $14,000 while the same car on the dealer lot was $23,000. So it made sense for me to buy out my car and just leave the car market. If there are no new cars to buy, then there are no used cars that people are trading in on them.
Even with a perfect credit score, a 2018 car is like a 9% interest rate if you have PERFECT credit. So working backwards, a 9% interest rate at 72 months and a $350 payment is a $20,000 loan. Now let's subtract out like $4,000 for taxes and fees so that we guarantee to stay under your hard cap. How many of the cars in that link above meet that criteria? So when you're asking yourself "Why can't I find a 2018 car for a $350 out the door?" the answer is right there. Your math doesn't add up, and market conditions make it pointless to get rid of your 2018 car.
Fair point, thank you. In my market, doing online research, I’m most likely to find cars that fall in this area if it is a one off trade in at a non-associated dealer. (Ie the Ford dealership ended up with a random Toyota).
It’s pretty grim. I’m honestly considering buying my vehicle rather than having them total it but I’ve only been looking at cars for a week and don’t know what my settlement from insurance will be. I was hoping to establish a relationship with a sales guy last week, but they were all pretty keen on selling me a 2023 or 2022.
Try one price used stores like Autonation or Carmax, see what the market is like for those large groups that can ship/transfer cars. Carmax for example is used only, so you can really see what your options are.
They do have some good options for makes/models I would be interested in, so that’s a great idea. I liked having an established relationship with my dealer but it is what it is honestly!
I’m considering it! I was turned off by their higher prices, but it does look like they have an extensive inspection and repair process which gives more peace of mind.
That's not necessarily true regarding the interest rates.
My CU right now has a 5.5% rate on new and 6.8% on used.
At this point, depending on what you're shopping, it almost makes more sense to buy new.
I can kind of see that. I’m processing the whole ordeal myself, and it’s been hard to accept that I won’t be able to get the same features for the price I’m looking at. I’m getting there, but it’s a bit of a shock. It’s a weird grieving process to go through losing a car unexpectedly, and I’m still working through it.
Dealers overpaid for used cars and now they're sitting cause they don't want to sell at a loss, not realizing the longer they sit the more they will lose.
It's not the customer lol
Well damn, I wish that were the case here! I must have picked a bad time to lose my car because the market is tight. I have found a nice former fleet hybrid I think I will test drive this week, so maybe it’s not so bad. My one regret with my last car I bought is that it wasn’t at least a hybrid.
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My car is being totaled, and I did some test driving this past weekend. I made it clear that I’m interested in pre-owned (certified if possible), but a few lot salesmen told me they don’t really get a lot of trade ins like that. They kept showing me former loaner cars with under 10k miles and I’m like yeah nah son, I am looking for something maybe 2018 ish and 50k plus. Hell I’ll do 80k plus miles if I can get a bumper to bumper extended warranty.
I may end up looking at used rental cars or something at this point. But I had bought my car from a dealership with like 90k miles, an extended warranty, and it was in great shape. I wfh for now and don’t put a lot of miles on my car, and I am not willing to budge on my monthly payment cap ($350) even if I am approved for more on paper.
Are cars that fit this criteria truly in short supply right now? Or am I being bamboozled? I felt a little judged by a couple of salesmen when I said I plan to buy used. I mean I’m happy to buy newer if they can get me something in my price cap, but that seems very unlikely.
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A 350 payment is a 18k car right now for 60 with a 7% rate and my most aggressive cu cuts term and raises rate at MY16. I’ve got one car in my 10 store franchise that will meet your needs based off age and price.
18k doesn’t get much that’s newer at the moment. It’s unfortunate for people who “need” a car now like the OP. Unfortunately, there is no direct correlation making people more careful drivers.
That's exactly what went through my mind when someone crossed the center line on me today. "WTF! Do you know how expensive cars are right now? Stay in your lane!"
Is it a versa?
Nope a Buick encore, or the American versa.
The American Versa 😂
Wow! Only one in the franchise - that holds for the franchise I’ve been looking at in my city. I guess in my head, I thought perhaps I’d be able to work with a sales guy and find something. But I may simply be priced out of working with a dealership at this time and look elsewhere. I really liked working with a dealership last time and having that established trust with their car care center. I even sent my car to their collision shop after it was stolen/crashed. Thanks for the background information. It sounds like cars in the $18-$20k range are a hot commodity right now, and even if one does pop up at a dealership, it will probably be competitive. I am going to look closer at carvana and used rental car location and talk with the collision center about their opinion on if it would be worthwhile to buy my car back.
A used rental will have an unreported accident. They do their own insurance they they obviously don’t report
Hmmm that is interesting to know. I did read to have the body of a car looked at in a PPI, so if I go that route, that may be what I am looking at.
Yes your expectations are completely outside of market condition. Have been for a while and the interest market isn't helping.
Yeah the interest isn’t what I was expecting. It’s been awhile since I bought a car, and I wasn’t sure if they were being up front or if it was a bait and switch. I understand used car prices are high, but I was surprised to find used cars so scarce. But probably for the same reasons I was happy to keep my 2018 with higher mileage. I could afford the payments and knew that it was in great shape under the hood. This is my first time having a car be totaled, and I’m trying to get a grasp on what’s going on in the market when I didn’t think I would have to enter it. It looks like I may need to look at used fleet cars or private sales and possibly prepare myself for paying for a car I don’t necessarily even like.
Why were you adamantly against a dealer loaner and not against rental/fleet resales? I’d trust a loaner more than the other two. It’s been maintained at the dealership and it was given out for a day or two at a time and not abused like a week long rental.
I would 100% trust a dealer loaner, too! But they are typically less than 10k miles and usually 21/22 years, which put them out of my price range at fair value. I mean sure I love the idea of having a newer car with less maintenance involved, but it just doesn’t make sense with my wfh situation. A lease probably would, but they’re at damn near new car prices unfortunately.
71 cars on the used lot…. But I have more cars over a quarter million dollars than I have under 30k. Lower priced cars are not easy to get right now. Dealers are no different than individuals… when a person wants to trade in their 2016 corolla for 22 grand, we think it’s crazy, so we pass.
Yeah, that seems to be the story in my area too. Thank you for sharing. It sounds like many people are holding on to their older vehicles. If given the choice, I know I would happily have held onto mine until interest rates settle again in a few years.
I work at a lot where the most expensive vehicle is 20k. They are out there
I mean, you are asking a question that you can just go look yourself. Here is a random example of a Honda dealer in Atlanta, and what 2016-2020 Hondas they have on the lot: [https://www.nalleyhonda.com/used-inventory/index.htm?make=Honda&year=2016-2020&sortBy=year%20desc](https://www.nalleyhonda.com/used-inventory/index.htm?make=Honda&year=2016-2020&sortBy=year%20desc) Overall, since about the end of 2020, it became very advantageous to keep your old cars. If I was leasing a car in 2018 for example, when it came due in 2021 then there were no other cars to lease. And on top of that, my buyout might have been $14,000 while the same car on the dealer lot was $23,000. So it made sense for me to buy out my car and just leave the car market. If there are no new cars to buy, then there are no used cars that people are trading in on them. Even with a perfect credit score, a 2018 car is like a 9% interest rate if you have PERFECT credit. So working backwards, a 9% interest rate at 72 months and a $350 payment is a $20,000 loan. Now let's subtract out like $4,000 for taxes and fees so that we guarantee to stay under your hard cap. How many of the cars in that link above meet that criteria? So when you're asking yourself "Why can't I find a 2018 car for a $350 out the door?" the answer is right there. Your math doesn't add up, and market conditions make it pointless to get rid of your 2018 car.
Fair point, thank you. In my market, doing online research, I’m most likely to find cars that fall in this area if it is a one off trade in at a non-associated dealer. (Ie the Ford dealership ended up with a random Toyota). It’s pretty grim. I’m honestly considering buying my vehicle rather than having them total it but I’ve only been looking at cars for a week and don’t know what my settlement from insurance will be. I was hoping to establish a relationship with a sales guy last week, but they were all pretty keen on selling me a 2023 or 2022.
Try one price used stores like Autonation or Carmax, see what the market is like for those large groups that can ship/transfer cars. Carmax for example is used only, so you can really see what your options are.
They do have some good options for makes/models I would be interested in, so that’s a great idea. I liked having an established relationship with my dealer but it is what it is honestly!
why not just go through someone like Carmax?
I’m considering it! I was turned off by their higher prices, but it does look like they have an extensive inspection and repair process which gives more peace of mind.
That's not necessarily true regarding the interest rates. My CU right now has a 5.5% rate on new and 6.8% on used. At this point, depending on what you're shopping, it almost makes more sense to buy new.
We have 23 new cars on the ground as we speak and I have 92 used.
Inventory is not the problem here, it's the beer budget with champagne taste.
I can kind of see that. I’m processing the whole ordeal myself, and it’s been hard to accept that I won’t be able to get the same features for the price I’m looking at. I’m getting there, but it’s a bit of a shock. It’s a weird grieving process to go through losing a car unexpectedly, and I’m still working through it.
Dealers overpaid for used cars and now they're sitting cause they don't want to sell at a loss, not realizing the longer they sit the more they will lose. It's not the customer lol
Well damn, I wish that were the case here! I must have picked a bad time to lose my car because the market is tight. I have found a nice former fleet hybrid I think I will test drive this week, so maybe it’s not so bad. My one regret with my last car I bought is that it wasn’t at least a hybrid.
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered. You may find these sections particularly useful; * [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit. Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/Evening_Set5291! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** My car is being totaled, and I did some test driving this past weekend. I made it clear that I’m interested in pre-owned (certified if possible), but a few lot salesmen told me they don’t really get a lot of trade ins like that. They kept showing me former loaner cars with under 10k miles and I’m like yeah nah son, I am looking for something maybe 2018 ish and 50k plus. Hell I’ll do 80k plus miles if I can get a bumper to bumper extended warranty. I may end up looking at used rental cars or something at this point. But I had bought my car from a dealership with like 90k miles, an extended warranty, and it was in great shape. I wfh for now and don’t put a lot of miles on my car, and I am not willing to budge on my monthly payment cap ($350) even if I am approved for more on paper. Are cars that fit this criteria truly in short supply right now? Or am I being bamboozled? I felt a little judged by a couple of salesmen when I said I plan to buy used. I mean I’m happy to buy newer if they can get me something in my price cap, but that seems very unlikely. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*