Trade-in values weakening?

It's just unfortunate that so many folks were willing to pay the markups. Throughout the madness, it seems like there were always dealerships selling at MSRP. I can't figure out how it made any sense to hand over an extra $5-10K rather than take a day off and travel a few hundred miles for a fair price.

If more people had been willing to travel and pay MSRP, the dealerships that were gouging would have had to stop.

Why not get a used Corolla? I'm sure you could find one for under $10K. It's not exciting, but it would be economical and reliable.

 

I got offered about $35000 usd for my ‘20 TRDOR with 30000 miles on it as a trade in. Keep in mind, the Canadian market has cooled off a bit since the interest rates are up and gas is now 6.45/gal.
Around 170 vehicles for sale ‘18 - ‘22 in the area. My buddy got a TRDOR with 26000 miles for 50000 cad, which is about $36000 usd.
Still waiting for my vehicle to get delivered to my local center, showing on the truck now. If it is all fast and good, she’s gone in 10 days.

 

That's probably a great suggestion. I've been looking at hatchbacks and wagons, but I just looked up Corolla's real quick and there are quite a few of them under 10K.

 

https://m.youtube.com/watch?v=COZocfFifQw

Shit hitting fan will be soon. Patience you must have

 

Vroom is a service like Carvana and paid me 25% more than Carvana or Carfax for my prior vehicle a year ago. They've also been losing money hand over fist based on their earnings reports (although somewhat consistent with analyst estimates, suggesting that was part of their plan as they build the business). I did a quick check to get their offer on my 2022 w/ 6k miles and it was about 10% below MSRP, another data point that suggests the market is starting to cool.

 

Tried to do a deal on a 2023 Tacoma a couple of days ago and the most they would do was $32,500, which was below KBB of $33k. They did this while having a 2019 SR5 on their lot with the same miles and no accessories or mods for $39k.

Interest rate was up to 4.5%. I love my 4Runner and it is fine for my needs. I walked. I just turned 40k miles and can probably go another 200k miles before worrying about a new one.

The market is softening and now is a terrible time to buy.

Maybe a year from now, when the recession is hitting hard and there is little to no demand for new pickups, it will be OK to buy a new Tacoma. But, then interest rates will probably be around 10%. Jeep is already charging 6% on new vehicles.

 

Vehicle repossessions have more than doubled among prime borrowers, banks are just starting to take lower bids at wholesale auctions because of their rising inventory.

 

It is starting

 

WIth those kinds of numbers, what is their mark up on new Pro's? Guessing $5k+?

 

This is exactly what I was getting at.

 

Just got an offer from a dealer for $35-36k for a 2021 trdorp with 13200 miles on it. KBB my ass. Things are getting worse real quick.

 

What did carvana and carmax offer

 

I've got a 2019 SR5 also. earlier this year I was offered $31k for it. went to maybe trade in 2 weeks ago and was offerred $24,500. mine is almost perfect except for one bad dent on the lift gate. I figured that knocked me down but dealer said even without that, it would only trade for $25,500. had another dealer tell me almost the same thing, but $500 difference.
...and I notice 4Runners are staying on the lots for 2-3 weeks around here, whereas not too long ago, if you saw one you liked, you had better grab it cos it might be gone tomorrow. I think the interest rates are slowing people down a little (?)

 

That and the holidays are coming. Interest rates. Falling trade in values. Mark my words a few paes back... remember the $5-15k MSRP mark ups when you get a call from your dealer 6-10 months asking if you knew about their BELOW MSRP pricing on all new 4R's. Its coming. Ive seen twice in my adult life. Winter is coming for dealers.

On the upside, we are buying a vacation home. Cash down, 12 months no interest. Everyone is getting out of something.

 

Winter is definitely coming

 

I sold my 2022 SR5P for $42,600. Could have sold it for $4K more 6 weeks ago.

 

Offers are lower today. Bought a 2022 Civic late in 2021. Three months later Carmax offered me $26k. Which is what I paid for it. 9 months later (last month) carmax offered $20k. $6k less in 9 months.

Dealers might still be trying to sell for over MSRP, but they sure aren't paying that for your trade in anymore. Hopefully it's a good sign car prices will finally come down. I miss walking in the dealer and negotiating well below msrp.

 

With CarMax, , it might not just be the used car values decreasing. I've been reading that CarMax is losing money like crazy, their stock prices are way down and they have huge losses. It's almost like their business model of overpaying for cars for a year and a half wasn't sustainable.

Also, they're involved in lawsuits with a number of states, because apparently they have issues getting titles to customers in a timely manner.

Edit:. My bad, I meant CARVANA, not CarMax.

 

Yup! And when the stealerships are hurting and begging next year. I'll suddenly have a trade in mark up. You know, just cuz.

 

My Forester trade in value this month is almost $2k lower than just 4 weeks ago.. prior it only dropped like $500 in whole year

 

Damerow Ford offered $45K on our 2022 Tacoma TRD Off-Road Premium 7K odometer, but we ended up walking because the mark up was just too high on a Badlands Bronco. This was last week.

 

I am 100% convinced that there is no new vehicle shortage.

I went to pick up my wife and daughter from the airport in Houston last Sunday. On the way, you drive right by the VPC (Vehicle Processing Center) where the majority of New vehicles are brought in to then be distributed to dealerships in the Houston region. It is a massive parking lot. I believe Gulf States Toyota is in the same area.

In normal years, the VPC is about 60% full. Last year, at the height of the shortage, it was virtually empty. Last week, it was completely full. I've never seen so many new cars in a single location. I couldn't see a single open spot from the highway.

I am confident that manufacturers or dealerships are holding vehicles back to keep charging MSRP or better.

Gonna wait until late 2023 to see if there are aggressive deals to be had.

 

✊

 

Just like all the other "shortages" and resulting price increases. All these companies taking advantage and using "supply chain issues" as an excuse to squeeze consumers to make record profits.

 

According to KBB, I can sell my 2018 SR5P for $36K or trade in for $32K. I bought it for $38K 3 years ago.

 

KBB said my 18 sr5p is 32k. It's time to start looking for wheels (cuz stock sr5 wheels are fugly lol) and leveling lift, so looked up values before spending big ticket money.

Yeah,looking like I'm spending big ticket money. Just waiting for them awesome BF deals.

 

What has been wrong with your 4R?

 

Im sure there is no shortage on vehicles now. Went on Monday to get warranty repair on my new 4runner PRO and saw four 4runners, including a PRO, 3 Tacos w/one PRO and 3 Tundras on the lot, along with alot of used 2020-21 RAV4 and Tacomas.

The Tundra limited was $79..they still marked it up to $86k. Some dealers are still on crack if they think someone will pay that and with high interest rates now. SMH.

 

I wanted to do the same with my 2019, instead I thought about how much I hate all the safety sensors and started upgrading it instead. Got sliders and a T10 v3. Next is a lift, tires maybe next year.

 

As someone that works at a Toyota store in the used car department, I will start by saying the store I work for does not do market adjustments and have not for the duration of the pandemic. With that said I can definitely say that the used car market is dropping at a raid rate. Over the last 4-6 weeks KBB wholesale values have been dropping $500-$1,500 per week depending on make and model. Interest rates are still on the rise and purchases are slowing. New inventory is becoming more readily available especially in gas models. Big dealer groups are way upside down due to aggressive purchasing habits in prior months and are now unwilling to take their huge losses which is bringing everything to a stand still of sorts. Trade in values have dropped because market day supply is on the up and up. The private party market is off the rails because people are either trying to get out of loans on vehicle they paid $5,000-$15,000 too much for or others are just greedy and fishing to see if someone will bite on their massive asking price to make a huge profit.