$$$ the economy thread $$$

[therumblewagon]

There's a saying in the car bid-ness:. "You can't get it unless you ask."

Turn that around and use it on them.

They won't budge on price - "confident they can get it" - so I'm gonna take that as a sign from the universe to sit tight. Thanks for the input, y'all cc @Houston.RZ34

 

[Houston.RZ34]

That being said, let us be mindful of those around us.

I've started giving larger than normal tips, but always by cash to the person assisting me.

Absolutely, I never forget where I come from - I refuse.

 

[MZGA]

 

[Houston.RZ34]

Carvana is an inch from death, all of their used inventory has to go somewhere

You can add their 100k+ used car inventory on top of the pile we already have at the auction lots.

If carvana goes under, they can't wait till tax time anymore.

 

[jdm-rhd]

Carvana is an inch from death, all of their used inventory has to go somewhere

You can add their 100k+ used car inventory on top of the pile we already have at the auction lots.

If carvana goes under, they can't wait till tax time anymore.

didn't know it was that bad...thought they had issues in just a couple states...

 

[Houston.RZ34]

didn't know it was that bad...thought they had issues in just a couple states...

Oh yeah it is, they took on a lot of bad debt during the pandemic.

Basically companies buy "debt" hoping to get paid off of the interest, hell of a gamble.

Most of the debt Carvana took on, defaulted.

 

[Donalex]

Funny, their cars are STILL priced at premium levels...

 

[Donalex]

After soaring in 2021, wholesale used car prices are down 15 percent from January, according to Manheim, an Atlanta-based automobile auction company. And those declines are starting to show up in prices paid by consumers, said Jonathan Smoke, chief economist for Cox Automotive.

New car prices will be slower to react. Dealers at the end of October had 1.56 million vehicles in stock, the highest figure since May 2021. That was enough to cover 49 days of sales, up substantially from one year ago but still well below the pre-pandemic figure of 86, according to Cox.

More ample supplies mean fewer customers are paying above the manufacturers’ suggested retail price, a common occurrence during the pandemic. The average new car sold in October for $46,991, which was $230 above the MSRP, according to Edmund’s, a car shopping website. In May, the average buyer paid $721 above list price.

Improving conditions in the new car market also are drawing buyers away from the used car market, which contributes to lower demand and falling prices on those lots.

“The used market has benefited from abnormal demand throughout the pandemic as a result of consumers being forced to buy used [who] could have or would have preferred to buy new,” Smoke said via email.

 

[West Aussie]

After soaring in 2021, wholesale used car prices are down 15 percent from January, according to Manheim, an Atlanta-based automobile auction company. And those declines are starting to show up in prices paid by consumers, said Jonathan Smoke, chief economist for Cox Automotive.

New car prices will be slower to react. Dealers at the end of October had 1.56 million vehicles in stock, the highest figure since May 2021. That was enough to cover 49 days of sales, up substantially from one year ago but still well below the pre-pandemic figure of 86, according to Cox.

More ample supplies mean fewer customers are paying above the manufacturers’ suggested retail price, a common occurrence during the pandemic. The average new car sold in October for $46,991, which was $230 above the MSRP, according to Edmund’s, a car shopping website. In May, the average buyer paid $721 above list price.

Improving conditions in the new car market also are drawing buyers away from the used car market, which contributes to lower demand and falling prices on those lots.

“The used market has benefited from abnormal demand throughout the pandemic as a result of consumers being forced to buy used [who] could have or would have preferred to buy new,” Smoke said via email.

Yep…got my eye on a Porsche second hand…if it drops another ten percent before the Z shows up…I’ll jump ship

 

[therumblewagon]

Bumping this thread up in case anyone else is in a similar boat - I'm loan hunting right now for a different car and with excellent credit, locked in a 5.25% for a new car via a local credit union. Not ideal, but the lowest they advertised was 5%, so considering it a win. I've never used a CU before, which I regret (hindsight is 20/20 and all that), but excited to get onboard.

Going to see what the dealership offers in return, but given the stories I'm reading about insane rates even w/ strong scores through them, I'm not holding my breath.

 

[takemorepills]

Bumping this thread up in case anyone else is in a similar boat - I'm loan hunting right now for a different car and with excellent credit, locked in a 5.25% for a new car via a local credit union. Not ideal, but the lowest they advertised was 5%, so considering it a win. I've never used a CU before, which I regret (hindsight is 20/20 and all that), but excited to get onboard.

Going to see what the dealership offers in return, but given the stories I'm reading about insane rates even w/ strong scores through them, I'm not holding my breath.

Hmmm, it'll be interesting to see how that goes for you.

Dealers were getting fat on lenders who'd write loans on vehicles way above MSRP or Blue Book (of course, KBB also went up on used cars).

I feel like dealers won't be so quick to give up on their recent shenanigans.... But if you're pre-approved, has your CU specified any restrictions on LTV? Do you have enough cash to offset markups?

 

[Evolution]

Bumping this thread up in case anyone else is in a similar boat - I'm loan hunting right now for a different car and with excellent credit, locked in a 5.25% for a new car via a local credit union. Not ideal, but the lowest they advertised was 5%, so considering it a win. I've never used a CU before, which I regret (hindsight is 20/20 and all that), but excited to get onboard.

Going to see what the dealership offers in return, but given the stories I'm reading about insane rates even w/ strong scores through them, I'm not holding my breath.

In March, I will need to refi a car that I am leasing as the lease is up and I want to keep it. Current rates for that are 5.5% through my credit union. However, that may change come the new year. If it does, its going up to 6.14%. So dont feel too bad about 5%. I have excellent credit as well.

 

[therumblewagon]

Hmmm, it'll be interesting to see how that goes for you.

Dealers were getting fat on lenders who'd write loans on vehicles way above MSRP or Blue Book (of course, KBB also went up on used cars).

I feel like dealers won't be so quick to give up on their recent shenanigans.... But if you're pre-approved, has your CU specified any restrictions on LTV? Do you have enough cash to offset markups?

Fortunately I've got them in agreement to sticker, and at this point given the back-and-forth I'll be very surprised if they try and pull a fast one. Hoping to get it finalized this week, too, car is gonna have to be transported from a few states over so I'd like to have it in my possession before winter break ends to enjoy it if possible.

I'm cautiously optimistic, but my gut tells me they'll come through.

In March, I will need to refi a car that I am leasing as the lease is up and I want to keep it. Current rates for that are 5.5% through my credit union. However, that may change come the new year. If it does, its going up to 6.14%. So dont feel too bad about 5%. I have excellent credit as well.

Appreciate you saying that. I almost hesitated in even letting them run my application (the dealer) because I know it's gonna be absurd, but I mentioned if they can match whatever CU gives me, I'll consider their offer.

Hopefully your CU holds the line and doesn't raise! I know they operate in the interest of members, so maybe they will. That'd be a pretty big jump, all things considered.

 

[Evolution]

Fortunately I've got them in agreement to sticker, and at this point given the back-and-forth I'll be very surprised if they try and pull a fast one. Hoping to get it finalized this week, too, car is gonna have to be transported from a few states over so I'd like to have it in my possession before winter break ends to enjoy it if possible.

I'm cautiously optimistic, but my gut tells me they'll come through.



Appreciate you saying that. I almost hesitated in even letting them run my application (the dealer) because I know it's gonna be absurd, but I mentioned if they can match whatever CU gives me, I'll consider their offer.

Hopefully your CU holds the line and doesn't raise! I know they operate in the interest of members, so maybe they will. That'd be a pretty big jump, all things considered.

Is the dealer trying to finance you through whatever company the car manufacture is? If so, you may actually be in luck. The chevy I bought a few months ago is a perfect example. My CU wanted 5.15% but GM financial gave me 3.9%. But at the same time, when I got my Supra, dealer wanted 3.5%, my normal CU wanted 2.9% and the broker I went through had some crazy deal where I got a $6700 credit and only 1.9%. Just got to shop around.

 

[ZDreamer]

Bumping this thread up in case anyone else is in a similar boat - I'm loan hunting right now for a different car and with excellent credit, locked in a 5.25% for a new car via a local credit union. Not ideal, but the lowest they advertised was 5%, so considering it a win. I've never used a CU before, which I regret (hindsight is 20/20 and all that), but excited to get onboard.

Going to see what the dealership offers in return, but given the stories I'm reading about insane rates even w/ strong scores through them, I'm not holding my breath.

Was that on top of the "Price is Right discount game" you played?

I financed at CU for the last 4 cars and all under 2%, but that was at least 4yrs old.