Car deals due to economic slowdown
I'm in the market for a new car.
Can anyone provide any insight on what to expect in the current economic climate? I know we just started to get in the thick of an economic slowdown due to the shutdowns. What can one expect. Will dealers/Manf. Get aggressive with deals? Or will they wait it out. Can anyone let me know what what happened in GFC? The big difference now is credit markets are still liquid.
I've always driven used cars and drove them into the ground. My last car was an 98 Lexus Ls400 with 280K miles. Just 2 weeks ago a slow oil leak turned into a big leak. I have Oil leaking out of Valve Cover Gasket, Camshaft seals and Crankshaft seals. Over $2K to repair. Not worth repairing since it also requires new PS pump, and also suspension work. Considering to part it out since front end parts for this model are hard to come by. Front bumper covers go for over $400.00(used).
Prior to the Ls400 I had an 03 Accord, bought in auction in 04 for 15K. I got rid of the Accord because the trans started slipping on a rebuilt trans at 303K miles. Original trans last 270K miles! Didn't bother rebuilding trans and sold it on Letgo for $400.00 and got to keep the battery.
Should I wait? Or should I still stick to my old strategy and buy a model that is a year or 2 old and run it to the ground? I have have budgeted $40K and have great credit. I would prefer to finance and invest with the balance.
An Acura TLX sounds like it might be your style.
The TLX is sharp, I like the body lines, haven't been in one yet. But I need something slightly bigger. I have rentals, so I hate having to pay for delivery of items like toilets for HD. Renting or borrowing a suv or truck from a friend is a time waste.
I'm considering a crossover or midsize. Total cost of Ownership is another factor. I'm trying to avoid a luxury brand, just to avoid the premium in price for everything. But I like the Lexus UX, Acura RDX. UX has a hybrid w 39MPG option and is probably my favorite. But the new Telluride and Palisade are niiiiicce! 10 year 100K warranty is nice to have as well.
Cool - I’d consider the Toyota Highlander too.
the conversations above are toxically practical. Seriously get a 911 or an M3 or GTFO
I gotta disagree with you there bud, I drive a 2019 highlander and granted it's a toyota, feels like the manufacturer went super cheap on the car and the price tag on it isn't justified. Prime example is for a 50k car i'd like it to come with some LED bulbs and not halogens, little shit like that. It's too big of a car and feels slow and heavy, it takes ~13 seconds just to get to 60mph. But I should say if you want a car that'll run and can take abuse, a japanese car is definitely one OP should look at.
Jaguar F Pace with a V6 certified pre owned (7 years/100k miles). Thank me later.
You can pick up a gorgeous, relatively low-mile 2017 Audi A7 for well under $40,000. The depreciation is breathtaking. The car is fast and beautiful with a phenomenal interior and sound system (including Apple Carplay and Android Auto). If I wasn't in the market for an electric car I'd be all over that vehicle like white on rice.
What kind of EV are we talking? I'm about to need a car for the first time in years and thinking model 3
A model 3!
You aren't kidding - i did a double take on that price, year and car.
Just wait for a bit, governement will lower the rates, people will have to sell their car they have on a credit, so you'll be able to pick some cars at a discount with a 0-1% interest rate loan (basically free money) that you can invest somewhere else and profit from there.
Dude I'd say take a look at Jeep or Dodge, I've been seeing Durangos and Grand Cherokees all over my neighborhood, idk for sure if they have a sale going on but given how everything's going to shit and Q1 is coming to a close, dealers might be more desperate to fill up their quota. My buddy has a Grand Cherokee and while it's not luxurious ('less you get the limited/luxury model) it's comfy, roomy, and is a fast car when you need it to be.
If you want more Japanese, I'd say the Nissan Rogue since you don't want a sedan but not an SUV exactly either. Car is ok imo and isn't the best, but it'll get you from A to B no problem. It does have an annoying feature though where the brakes will lock up on you if you're backing up and the sensors think a car is approaching from behind you despite the fact that you're just parking. Toyota Rav4 is also alright but the I4 on it kills me because it's just goes so slow.
Also final suggestion, take a look at some used Lexus RX 350s, they're known as the soccer mom car where I'm from and live but from my POV they've always looked nice, comfy, and since they're Japanese pretty dam reliable. This is if you want a car with some leather seats and luxury items which honestly are pretty great if you're driving all day long.
Just my $0.02 - have historically had problems with Jeep. Used to drive Cherokee and it was endlessly problematic/constantly in the shop. My buddy bought a new one ~3 years ago and has had the same problem. I think Jeep has produced certain make/models in the past that have since become notoriously troubled so maybe we've just had some bad eggs. Others here may have better view
I know you mentioned earlier that the Highlander hasn't lived up to the price tag, but I just want to throw the 4Runner into the conversation. My dad's previous car was a 4Runner and that thing was an absolute war horse. He put some serious miles on that beast but I swear to god it drove/felt brand new the day he traded it in. Owned for nearly a decade and put way more miles/yr than the avg commuter. Moral of the story: the Japanese know how manufacture a fucking durable automobile
absolutely agree with you on that. Reason I mentioned american cars was simply for the reason that if you need to repair something on it, the price of it will be drastically cheaper than any foreign car, Japanese cars included.
buy a 1986 toyota camry (my first car) for $400 and call it a day. Use the rest of the money, wait a few more weeks and buy the market. In two years time, sell your holding and buy yourself a brand new bentley.
You are welcome
->Buying an overpriced Volks Wagen and thinking it's luxury
I don't really care what my driver feels at the wheel. A bentley is comfortable at the back, and that's all I need
I had a 93 ls400 wasn’t a bad car before I got rid of it
Why don’t you wait another couple months... there will sure be a lot more cars when people can no longer afford them
Buy something that is 2-3 years old and is certified pre-owned. Must be CPO by the manufacturer, not that after-market warranty bullshit they try to sell you at the scammy used car dealerships. This gets you a 1 year warranty with a low deductible, like $100. Bought my F150 as a CPO and totally worth it.
Not sure how the car market is going to be, but there were a lot of deals on various things in 2008. Was just out of school then so didn't have much scratch but I remember buying a brand new couch for ~$450, that would have been easily $1,000 the year before. Bought a new tv with the same sort of mark down. However, this wasn't immediate. It took a while for prices to reset.
I just purchased a 13 fully loaded Accord, single owner with 44k miles over the weekend from a private party. The lady I bought it from had the car, but after a divorce didn't want anything around from her ex. It books out at 16k retail, 13,500 trade-in. I gave her 10,250 although she had it advertised for 14.
So yes, there are deals out there. If you know what you want, and are willing to stick to your guns, AND have cash.
Nice find! I'm not that aggressive. I would have offered trade in.
Prices in the auto market are static, nothing has dropped significantly yet. You will need to see a greater demand for liquidity, ie. dealers or private sellers needing to sell cars to meet financial obligations to see signficiant discounts. Most sellers are flush with cash from recent economi run, and will need to feel more pain before they are forced to lower prices significantly.
Eventually prices will fall, but will require more time.
Positive side, new major platform changes to existing car models came out in 2020 lowering prices of cars from the 2016s - 2019s. You can pick up great cars for the value/tech/performance in the used market for relatively innexpensive prices because the new model is out.
Scout out the guys who bought sports cars they couldnt afford about 1 month ago, and show them a cash bid at half what they paid.
Won't help. Most of them are already underwater to the bank if they bought it new. They won't have that cash sitting around to pay off the negative equity even to sell it. If they are in a bad financial situation they will end up driving the car until it gets repo'd.
The auto market has been great over the past few years. Demand for cars, specifically for used cars has been growing over the past few years. Because of how much cheaper used cars are relative to that of new cars, in addition to dealers getting higher margins on used cars, has resulted in an increase in used car price and forced auto manufacturers to offer generous incentives to push people into buying new cars.
To answer your question, I think now is a golden time to buy a vehicle. Either 2019 or 2020 was supposed to be a record year for off-lease vehicles, in addition to the economic havoc coronavirus is having on the markets (most people need a car because they use it for their jobs/don't live in a city with a robust public transportation system), in addition to the dynamics I mentioned earlier, should give you some negotiating power in buying a vehicle.
Is leasing an option for you? I am sure you can get some pretty great terms on a lease in these times.
Thanks for your advice. I don't like leasing due to the mile restriction. I typically drive over 15K miles. So getting a reliable car that is somewhat fuel efficient would be ideal for my needs. I definitely want an EV but I'll wait. I feel like it is a piece of tech and if I buy such a large ticket item, in a few years EV will be even better (miles/charge) and I'll be stuck with a POS.
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