Topic: The car market is turning.

[Dante]

Brought to you by the "Auto Clearance Center" with a certified mechanic on premises. That makes all the difference.  They're clearing them out alright.

The topper is that this vehicle has entered the "GREAT" DEAL ZONE.  So sick. 

Thing is I haven't seen these ('16-'17) under $20K unless big claims or higher mileage and even then still few grand above $20K.

[ArticSteve]

Lets just stick with Ontario shall we.  That BMW will be a total POS sold by a POS reseller in Surrey which is quite similar to Brampton ON; the wild west of used cars.

[Dante]

Lets just stick with Ontario shall we.  That BMW will be a total POS sold by a POS reseller in Surrey which is quite similar to Brampton ON; the wild west of used cars.

LOL.....

[ArticSteve]

Do I think that prices of used vehicles are going south?  Yes.  New vehicles prices are not.  New vehicle financing rates are taking up the slack so to speak on specific vehicles like 1/2 tons.  Meanwhile Toyota is laughing all the way to the bank at 7.8% on everything.  The Germans don't seem to be budging either.

I'm trading my 2022 leased MDX with 27mths gone on a 48 mth term early because I'm afraid that used prices will start falling noticeably in 2024.  I'm doing the switch for a 2024 this Friday.  After 27 mths on a 48 term I'm in neither a negative or a positive equity position which is pretty remarkable.  My new lease rate is 1.9% on a 40 mth term. 

[Dante]

I wish your grim prediction will become reality for once and the price of used cars will come down significantly this year.

[revalations]

I’m not seeing any price drops. In fact, they’re going up. Though I primarily watch the truck market. As long as the US market doesn’t topple over and the US dollar stays strong I don’t see our market crashing anytime soon.

[JohnnyMac]

Do I think that prices of used vehicles are going south?  Yes.  New vehicles prices are not.  New vehicle financing rates are taking up the slack so to speak on specific vehicles like 1/2 tons.  Meanwhile Toyota is laughing all the way to the bank at 7.8% on everything.  The Germans don't seem to be budging either.

I'm trading my 2022 leased MDX with 27mths gone on a 48 mth term early because I'm afraid that used prices will start falling noticeably in 2024.  I'm doing the switch for a 2024 this Friday.  After 27 mths on a 48 term I'm in neither a negative or a positive equity position which is pretty remarkable.  My new lease rate is 1.9% on a 40 mth term.

Funny you should mention Toyota and their finance rates, I just noticed that the rate for the Supra actually went down slightly.  It'd be nice if that is the start of a trend, but it might have more to do with being so far into the model year.  Regardless, I'm glad to see the rate going in a downward direction.

[PJungnitsch]

Caught a RAV4 hybrid Uber in Vancouver last week, 4 days old. Asked the guy how it was getting one, he said it took a year, but he'd put his name in when he took delivery of a new RAV4 hybrid a year ago. Said they gave him the same price as a trade in that he paid new

Nice situation if you put on the mileage

[ArticSteve]

I wish your grim prediction will become reality for once and the price of used cars will come down significantly this year.

Which grim prediction?   I've had a boat load and not one has proven incorrect.   

Let's not get carried away on the used car front.  I said that I believed my MDX, by the spring (1st of April/24) would not meet it's residual.  Currently, despite having a hole in the rear bumper it's met or exceeded it's residual.  Never implied a significant drop.

People on here also need to stop comparing prices in western Canada with those in southern Ontario.  Two different regions entirely, both just happen to be part of the same country; for now.

New vehicle prices continue to climb.  The shake out has begun.  Some brands in high demand, some brands in deep trouble.  I think used car prices are determined by segment.  Weiner cars will hold price better than expensive vehicles.  Toyota/Honda will hold better than D3 vehicles.  The obvious.

[ArticSteve]

Do I think that prices of used vehicles are going south?  Yes.  New vehicles prices are not.  New vehicle financing rates are taking up the slack so to speak on specific vehicles like 1/2 tons.  Meanwhile Toyota is laughing all the way to the bank at 7.8% on everything.  The Germans don't seem to be budging either.

I'm trading my 2022 leased MDX with 27mths gone on a 48 mth term early because I'm afraid that used prices will start falling noticeably in 2024.  I'm doing the switch for a 2024 this Friday.  After 27 mths on a 48 term I'm in neither a negative or a positive equity position which is pretty remarkable.  My new lease rate is 1.9% on a 40 mth term.

Funny you should mention Toyota and their finance rates, I just noticed that the rate for the Supra actually went down slightly.  It'd be nice if that is the start of a trend, but it might have more to do with being so far into the model year.  Regardless, I'm glad to see the rate going in a downward direction.

I took another look and it seems quite a drop across the board.  Most models slight above 7%.  The hybrids are generally 7.3%.    Still a big ask for most buyers and it is the worst time of year for car sales.

[WP v3.32]

Do I think that prices of used vehicles are going south?  Yes.  New vehicles prices are not.  New vehicle financing rates are taking up the slack so to speak on specific vehicles like 1/2 tons.  Meanwhile Toyota is laughing all the way to the bank at 7.8% on everything.  The Germans don't seem to be budging either.

I'm trading my 2022 leased MDX with 27mths gone on a 48 mth term early because I'm afraid that used prices will start falling noticeably in 2024.  I'm doing the switch for a 2024 this Friday.  After 27 mths on a 48 term I'm in neither a negative or a positive equity position which is pretty remarkable.  My new lease rate is 1.9% on a 40 mth term.

Funny you should mention Toyota and their finance rates, I just noticed that the rate for the Supra actually went down slightly.  It'd be nice if that is the start of a trend, but it might have more to do with being so far into the model year.  Regardless, I'm glad to see the rate going in a downward direction.

I took another look and it seems quite a drop across the board.  Most models slight above 7%.  The hybrids are generally 7.3%.    Still a big ask for most buyers and it is the worst time of year for car sales.

I've seen offers on the hood for Toyota trucks recently. 3-$4k off MSRP but they  are the high trim ones

[ArticSteve]

If you are referring to Tundra and Sequoia then $4K on the high trims is a rounding error.  Those units are a major BUST.

New Tacos landing very soon.  There will be fist fights over those. 

[warp]

Anyone who bought/leased just before the pandemic when supplies were normal will have significant equity now, 3-5 years later, which could be used during trade in time, but I sense and I could be wrong that this sharp appreciation in prices will now moderate i.e. this was a one time major gain. However unless new vehicle supplies improve the differential between new and used prices will remain tight. I doubt though that we are going back to the pre pandemic paradigm of mostly being able to buy off the shelf with either the dealer you are shopping at or a nearby dealer having the spec/trim that you are looking for being readily available. As long as this new normal of order and wait for a few weeks/months for your vehicle to arrive remains, the differential between new and used prices will remain tight.

There is also the price point issue. A friend was shopping recently for a Highlander hybrid....a 1 year wait list, but he got a Lexus RX 350h in about 6 weeks, it's a platform mate but $20-25K more expensive.

[Hammy]

Anyone who bought/leased just before the pandemic when supplies were normal will have significant equity now, 3-5 years later, which could be used during trade in time, but I sense and I could be wrong that this sharp appreciation in prices will now moderate i.e. this was a one time major gain. However unless new vehicle supplies improve the differential between new and used prices will remain tight. I doubt though that we are going back to the pre pandemic paradigm of mostly being able to buy off the shelf with either the dealer you are shopping at or a nearby dealer having the spec/trim that you are looking for being readily available. As long as this new normal of order and wait for a few weeks/months for your vehicle to arrive remains, the differential between new and used prices will remain tight.

There is also the price point issue. A friend was shopping recently for a Highlander hybrid....a 1 year wait list, but he got a Lexus RX 350h in about 6 weeks, it's a platform mate but $20-25K more expensive.

We are in this exact case, $7,000 equity at the end of our 3 year F-150 Lariat lease in two months, can't beat it!

[ArticSteve]

Being in NFL might have helped that positive equity.

[ktm525]

If you are referring to Tundra and Sequoia then $4K on the high trims is a rounding error.  Those units are a major BUST.

New Tacos landing very soon.  There will be fist fights over those. 

If they come by rail from Mexico is it still referred to as landing?

[JohnnyMac]

Interest rate on the Supra is down again…I like this trend.

[ArticSteve]

What's the trigger point?  This decade not next.

[JohnnyMac]

What's the trigger point?  This decade not next.

Late winter/spring 2025 bud.  The plan is still in place, will be putting a deposit down in April at the dealer.  Won't accept delivery until next February at the earliest.  That's the plan and I'm sticking to it.

[ArticSteve]

Deposits mean nothing as they are always refundable.  Just go and buy the unit man!