Wandl

I've mentioned to this in some other posts to CL members who are looking to purchase pre-owned vehicles, the "wait, the prices will continue to drop" advice is only solidified by market analysts who see this as a real struggle for automakers.

http://www.msn.com/en-us/money/compa...aPp?li=BBnbfcL

- Luxury brands like BMW/MB up to 70% of their retail deliveries are leases, meaning 2014's are due back this year
- New car sales have increased 7 years in a row, a statistic not matched since the Model T days
- Hertz CEO replaced due to falling values of their used vehicles (and this will be felt across the industry)

All in all, it seems 2017 and 2018 would be a great time to purchase a used vehicle because of the supply-demand law of economics. There will be an overflow of supply with a lot of leased vehicles (26% of Ford's retail deliveries were leases, this article shows) and that will compete against new car sales which has, in my humble opinion, less financial room to maneuver.

I myself am eyeing a 2013-2014 LS460, may time it when LS500's hit the showroom to explore getting them >$30k. For those considering/currently in the market, wait a few months as 2017 has the promise to be a great year to get a good deal on a great car!

pbm317

But it'll also hit you if you have a car to trade in, as those values will also be dropping commensurately.

Wandl

Yes - absolutely

Kira X

iTrader: (24)

I've always wondered how everyone can afford new cars every year.

Aron9000

Lease it baby!!! Just be stuck with car payments for all eternity.

Although on some cars with really strong used values(Toyota Tacoma comes to mind), it just makes a lot more sense to buy a new one vs one that is a couple of years old. In the example of the Tacoma, a 2 year old truck with 20k miles is like $2000 less than what you can buy a brand new one for.

mmarshall

There's your answer.




In most cases, I'm a firm believer in not buying what you cannot readily pay cash for.....or, if on credit, what you cannot afford to pay off each month. It's a sure recipe for avoiding trouble. I myself have never had a car that I did not own outright the moment I drove it home from the dealership (or bought used)....though I might (?) just consider a lease next time.

I know there are some folks who like the idea of taking the money you would have used to pay off the entire car-debt up front and investing it instead, (hopefully) using the interest gained to pay the debt off. That can work in some circumstances, but, much of the time, IMO, is risky....and, of course, we are in an era of very low interest rates on fixed-investments.

Toys4RJill

Seems to be the trend.

Long term finance terms are now longer than ever

New car prices will drop big time. More lower rates on finance terms until production gets leveled off. Less imported and more domestic production mix as well.

mmarshall

Correct. And, if you invest in a CPO (Certified Previously Owned) vehicle, they will usually run even more, because of the added inspections/repairs/reconditioning required and the almost new-car-like warranty that goes with it.

Fizzboy7

New car prices will drop big time? Can you elaborate? That is something that has not really happened in 30 years. Some extra rebates may pop up here and there, but rarely has there been a time in modern days where things have really gone in the opposite direction.

blacksc400

iTrader: (4)

If the new car sales goes down, maybe I can get an even better deal on a new one since
dealer is not moving the inventories!! Yes!

Toys4RJill

Sorry guess I should of worded it a little differently. The incentives will increase quite a bit until demand and supply meet.

Wandl

I know for the US big 3, they had massive inventory of 2016's they needed to clear out in Dec. By the end of Nov 2016, the US auto industry had 4 million new cars in inventory.

http://jalopnik.com/what-americas-gl...ers-1790359871

This just means significant price pressures as automakers will continue to increase incentives for new cars.....however that automatically means used car values will go down (which will in turn impact lease pricing as they are directly correlated with resale values). There was an article mid last year that the brand new 2016 Dodge Dart's were going off $10k MSRP (get a brand new Dart for $12k!) which means every single used Dodge Dart in existence has plummeted in resale value.

All in all, I think a great time to purchase a vehicle however if you're trading/selling one, you won't see a significant benefit as the lower purchase price is matched by the lower trade price as well.

situman

Well there are debates for and against leasing. I'm all for leasing. Think of it as a 2-3yr test drive with the option to give it back if god forbid an accident happens. However, if the car turns out to be a gem with no rattles, squeaks and problems, who's to stop you from buying the car after the lease? Last thing anyone wants to be stuck with a car they are no longer happy with or a car that's been hit or annoys the hell outta you.

JessePS

Maybe just maybe, Subaru will have a 0% APR sooner or later. I know there is a 0% for 36 month lease on certain Toyota models here, none that I would want. Honestly, Toyota you should have offered the CH-R in AWD and not FWD.

mmarshall

Not necessarily. Demand (and pricing) for a new vehicle does not necessarily affect demand and pricing for the same vehicle in the used-car market....it depends on a number of factors. What will affect the Dart's value (and potential value) of both new and used ones is that the car may soon be out of production.