If carmakers are losing money on many cars, is now best time to buy sedans?
02-21-18, 09:37 AM
#31
Lexus Test Driver
So back to the sedan discussion - I picked up a new 18 CRV recently, was talking to the salesperson and the new Accords (as well acclaimed as they are) aren't selling well, probably 1 Accord sold for every 3-4 CRV's sold. Obviously, this is anecdotal observation talking - the way I look at it, less sedan buyers means better pricing & more inventory for me to choose from =). This is why Chrysler chose to scrap their redesign of their Chrysler 300 (https://www.carscoops.com/2017/09/ch...edesigned-300/), the way to profits and revenue is via trucks and SUV's. Hyundai is suffering because most of their volume comes from sedans which, as decent of a car as Sonata may be, when the brand is suffering from a 30% yoy unit decline, Hyundai doesn't have too much to offer to overcome that decline.
02-22-18, 08:36 AM
#34
drives cars
I don't really care for crossovers, so I will continue buying sedans/hatchbacks and the like, i.e. cars that are lower to the ground. I'll let you know how that goes in a year or so - maybe sedans will still be available then, on the used market at least.
I really think sedans are going to continue to become more niche items if the market continues the way it is. As some Youtubers, like say Alex on Autos, have pointed out, it seems sedans are intended for a more fun driving experience in contrast to crossovers (though even some of those are supposedly more sporty, like for example the CX-5).
02-22-18, 10:20 AM
#35
Lexus Test Driver
Originally Posted by arentz07
A bath? I think the question is more about getting good deals on sedans due to the current climate of sales. Whether it's a good idea to buy or lease a new car is not the point of this thread, is it?
I don't really care for crossovers, so I will continue buying sedans/hatchbacks and the like, i.e. cars that are lower to the ground. I'll let you know how that goes in a year or so - maybe sedans will still be available then, on the used market at least.
I really think sedans are going to continue to become more niche items if the market continues the way it is. As some Youtubers, like say Alex on Autos, have pointed out, it seems sedans are intended for a more fun driving experience in contrast to crossovers (though even some of those are supposedly more sporty, like for example the CX-5).
I don't really care for crossovers, so I will continue buying sedans/hatchbacks and the like, i.e. cars that are lower to the ground. I'll let you know how that goes in a year or so - maybe sedans will still be available then, on the used market at least.
I really think sedans are going to continue to become more niche items if the market continues the way it is. As some Youtubers, like say Alex on Autos, have pointed out, it seems sedans are intended for a more fun driving experience in contrast to crossovers (though even some of those are supposedly more sporty, like for example the CX-5).
02-22-18, 12:24 PM
#37
Lexus Test Driver
A bath? I think the question is more about getting good deals on sedans due to the current climate of sales. Whether it's a good idea to buy or lease a new car is not the point of this thread, is it?
I don't really care for crossovers, so I will continue buying sedans/hatchbacks and the like, i.e. cars that are lower to the ground. I'll let you know how that goes in a year or so - maybe sedans will still be available then, on the used market at least.
I really think sedans are going to continue to become more niche items if the market continues the way it is. As some Youtubers, like say Alex on Autos, have pointed out, it seems sedans are intended for a more fun driving experience in contrast to crossovers (though even some of those are supposedly more sporty, like for example the CX-5).
I don't really care for crossovers, so I will continue buying sedans/hatchbacks and the like, i.e. cars that are lower to the ground. I'll let you know how that goes in a year or so - maybe sedans will still be available then, on the used market at least.
I really think sedans are going to continue to become more niche items if the market continues the way it is. As some Youtubers, like say Alex on Autos, have pointed out, it seems sedans are intended for a more fun driving experience in contrast to crossovers (though even some of those are supposedly more sporty, like for example the CX-5).
For example, I did purchase a new 2013 Accord that, when I did trade, did lose $$ on even with a downpayment on the original purchase. I compared NADA + Edmunds value on a 2013 $28k (when new) Accord vs CRV, and the CRV retains the value better based on those two guides. Meaning if you want to buy a sedan, buying it used would make it that much better of a buy...
02-22-18, 07:19 PM
#38
Lexus Fanatic
That said, the basic rule of economics is supply = demand. With a lower demand, I've actually experienced faster depreciation on a sedan vs SUV given the constant increasing demand for SUV's.
For example, I did purchase a new 2013 Accord that, when I did trade, did lose $$ on even with a downpayment on the original purchase. I compared NADA + Edmunds value on a 2013 $28k (when new) Accord vs CRV, and the CRV retains the value better based on those two guides. Meaning if you want to buy a sedan, buying it used would make it that much better of a buy...
For example, I did purchase a new 2013 Accord that, when I did trade, did lose $$ on even with a downpayment on the original purchase. I compared NADA + Edmunds value on a 2013 $28k (when new) Accord vs CRV, and the CRV retains the value better based on those two guides. Meaning if you want to buy a sedan, buying it used would make it that much better of a buy...
My experience is that the condition of the used car itself, with depreciation, often makes as much difference as simple supply and demand. I keep my cars clean inside and out, take care of them, and record all service......gets me a good trade-in value (sometimes more than KBB) when the time comes.
02-22-18, 09:31 PM
#39
In my opinion, the real problem with sales of traditional family sedans is that the modern crossover does a better job of what the sedan was supposed to do - transport people and their stuff. A CR-V is a better people mover than an Accord sedan. So, the buyer for the lower end Accord gets a better appliance with the CR-V. Used car buyers are making the same judgement so used sedan prices are also low. The ongoing market for sedans will be for them to deliver enough of a difference in driving experience from the crossover to overcome the packaging issue.
The sedan must be faster, or much better handling, or much better riding, or much quieter to create this market. The ES350 for example, is not enough better than the RX350 to match the RX sales.
New sedans will probably continue to sell with large discounts, but the resale value will likely also take a big hit. The deal is on fairly late model used sedans.
The sedan must be faster, or much better handling, or much better riding, or much quieter to create this market. The ES350 for example, is not enough better than the RX350 to match the RX sales.
New sedans will probably continue to sell with large discounts, but the resale value will likely also take a big hit. The deal is on fairly late model used sedans.
02-23-18, 09:17 AM
#40
drives cars
I think we all know buying a brand-new car, no matter what class of vehicle it is, is not a smart financial decision. You're going to take a "bath" in depreciation no matter what. So I was wondering why even bring that up, situman?
I think sedans are more efficient than crossovers, on average, due to aerodynamics, which does give them some merit even if crossovers are better at some aspects of being family cars. Even then, a wagon or hatchback combines a lower profile with the larger cargo space associated with crossovers - usually even more space. Yet, people don't buy those. I think image has a lot to do with it - wagons are just too uncool to supplant crossovers. (Personally I don't mind wagons at all, especially ones that look like the new V60 )
In my opinion, the real problem with sales of traditional family sedans is that the modern crossover does a better job of what the sedan was supposed to do - transport people and their stuff. A CR-V is a better people mover than an Accord sedan. So, the buyer for the lower end Accord gets a better appliance with the CR-V. Used car buyers are making the same judgement so used sedan prices are also low. The ongoing market for sedans will be for them to deliver enough of a difference in driving experience from the crossover to overcome the packaging issue.
The sedan must be faster, or much better handling, or much better riding, or much quieter to create this market. The ES350 for example, is not enough better than the RX350 to match the RX sales.
New sedans will probably continue to sell with large discounts, but the resale value will likely also take a big hit. The deal is on fairly late model used sedans.
The sedan must be faster, or much better handling, or much better riding, or much quieter to create this market. The ES350 for example, is not enough better than the RX350 to match the RX sales.
New sedans will probably continue to sell with large discounts, but the resale value will likely also take a big hit. The deal is on fairly late model used sedans.
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