Do vehicles really go up in value?

Rational car buyers? Was that ever a thing on the whole? The entire market is driven by wanton demand where cars are considered outmoded after 3yrs. As we can see here, that is really not the case though.

There is only the churn.

 

Yeah this is all crazy right now. I just checked my value on my 2019 TRD OR and it’s more than I paid. I have 20K miles currently too. But like others said I can’t replace it so it’s a mute point.

 

Here's a thought...........

Those who panic buy at these inflated prices will suffer the most when a 'correction' occurs.

IE, some period of time from now we'll have Friday posts that say

......... back in '21 I willingly paid $xx,xxx for a gently used '20 Pro, because everyone knows Tacomas hold their value. Today I was offered a number 20% under that for a trade on the new '24. So what happened to all that 'value holding'? ..............

Another thought.

Patience will likely earn a buyer a boon in used truck availability (including Tacomas) as gas prices double up, 70+% of individual truck owners realize they don't actually 'need' a truck at all, and folks with lousy terms on their finance notes suddenly realize they are upside down in the vehicle because the price has corrected.

The demand and overpricing will shift to nicely appointed econo boxes, gas sipping CUVs and modest mini vans for larger families. Now is the time to buy one of those, as there is currently not much interest. Buy two, and have one to sell to Carvana in a couple of years.

 

Terrified of mine. Its due to be mailed out end of this month.

My homeowners insurance went up 500 bucks this year. Surprise. Car insurance only got raised by 20 bucks.

Fun times.

 

Cash for Clunkers Take 2. Remember when a few year old USDM car was suddenly worth $3k?

 

Prices around me are asking price plus 100k... people come in with cash offers of 100k over asking or more... Intel is about to invest
20 BILLION into a new campus nearby, expecting 3,500 high-paying-high-tech-jobs, with another 3,500 good paying support jobs and
the community expects an additional 10,000 support-role jobs out of the deal, construction / maintenance / supplies / etc etc etc.

Lots of these cash-buyers are coming from California, where 500k for a house is like chump-change... they figure they are getting a
heck of a deal. Bought my house 4 years ago and it's already worth 100k more than I paid for it. I suspect by the time Intel gets rolling
it'll be worth twice what I paid....

 

Curious if you live in an area with regular natural disasters? Tornadoes, hurricanes, wildfires, flooding?

The whole Federal Flood Insurance thing is a decades old debacle that every politician is scared to touch, because they can't see a path to come out a winner. Yet it will eventually collapse under it's own weight and lots of folks will be ruined because of it.

 

Of course. But I'm predicting a market driven scenario here, not a Government Motors bailout.

 

I get you. It will be a wild ride, esp with the fuel cost spike that you noted.

 

Average trade value on my 2020 is $1k more than I paid a year and 16,000 miles ago. My mom was considering trading for a new 4Runner, but we can't find one on the lot. Everyone that we've reached out about was already sold, as were most of the ones in transit. Dealers don't want to talk discounts, but I haven't come across any markups in my area. So you can get top dollar for you vehicle, but you'll also pay sticker price for the new. Of course, it may not be much different than when you got a $4k discount on the new one, but $4k less on trade.

 

The cheapest rental car in Maui in March ran for $722 a day

Holy balls!

 

This is going to end so badly for a lot of people when the wheels fall off. I even got rid of my Frontier two weeks ago. I basically drove it for two months and it cost me nothing to do so

 

I agree prices for used Taco’s are crazy right now, but this isn’t the first time. In ‘09 a neighbor of mine wanted to buy a used Taco (2-3 years old). He ended-up buying a new one because at that time used ones (from a dealership) were close to or more than the price of a new one! I noticed the same trend when I started shopping for a Taco in Spring of ‘20

This is in So.Cal. Where prices for a lot of things are nuts. X-Large, two-topping Pizza from a national chain is ~$30 here!

 

What did you replace the Frontier with?

 

I feel bad for people trying to buy houses in my area right now. Average selling price in my neighborhood is closing-in on $800K and they are selling in days, sometimes less than that. Thankfully my hatred of packing and moving (I did four moves in ten years) is keeping me where I’m at LOL!

 

haha yeah it is crazy, I just got my property tax assessment as well and my house value went up 105k this year, Littleton Colorado here

 

I ended up trading for a CPO one owner 2018 Cooper S, with a six speed manual and walking away with a large check.

 

I am just South of you in Highlands Ranch. My neighbor sold his house in one day. He put it on the market at 9:00 AM and had several offers over the asking price by 5:00 PM. He sold for $20K over his asking price.

 

Once I clean my truck I'm going to put it on FB. I paid 36.5 in Dec 2019, if I can get 38 for it, I'm going to let it go that's the truck cost + the taxes I paid on it.

Granted, I'd turn around and go buy a new SR which is also inflated, but that is basically 18 months and 35k free miles.

 

It's insanity I think FOMO has gotten people hard and we've seen this before. I know people like to talk about tighter lending standards, but they can't be that tight.