If you Paid over MSRP, what happens in 3-5 years?

Nope. Going to continue upward until demand peaks.

 

Truth.

 

Like others mentioned it depends on the market in 3-5 years, if it stays the same or gets worse then you'll be ok. There is nothing that depreciates faster than a new car, as soon as you leave the dealers lot you've already lost money, under normal circumstances anyway. If a guy/gal paid a ridiculous "market adjustment" I think they will take the hardest hit if they trade or sell in 5 years or less unless things get really really bad.
The people who leased cars 4 or 5 years ago and are approaching the end of the lease will do really well if they buy it out.
I know a couple guys that ordered and received the new Bronco at MSRP and had to decide if they wanted to keep it or make a quick 15K. I've been around awhile and I've never seen shit this crazy not only cars but everything. 18.00 for a pack of chicken? WTF?

 

Not bad, change the oil. Then the brake fluid every 2 years, no problems. Insurance is $400 a year (on the home bundle package)so I just keep it on the road though it's never seen a New England winter.

 

In 3-5 years, there will be a shortage of 3-5 year old vehicles.

 

Those Broncos are also 1st year vehicles, but we are talking 1st 90 day resale values, not 1st 90 day reliability ratings.

 

we are overdue. its the best time to buy luxury goods

 

I paid below MSRP for my 2019 and just got stupid trade in money for it. Pretty sure not a correlation between one and the other. It's market in general not what you paid.

 

I have two Broncos, a 95 that I bought new and a 84 and I can tell you I would not buy a new one especially the 1st year of a brand new design. Hopefully they do well

 

I don't need a Bronco, I would like to have one. Would not want to pay the mark up I have seen on them, and 1st year anything makes me nervous.

 

Be mindful of an Upside Down loan.
https://www.capitalone.com/cars/learn/managing-your-money-wisely/what-does-it-mean-to-be-upside-down-on-a-car-loan/1011

 

I paid $3k over MSRP, but sold my used car for a silly premium as well, like $3k to $5k over what it was valued at a year or two ago. I consider that a near wash. Obviously I would have liked to pay MSRP or less, but I'll take a draw in the current market to have exactly what I want to do what I want.

For those not trading in, the math is not in their favor. But the future market is what it will be, when the time comes.

 

You paid a price.

You sell/trade at a price.

MSRP is a mythical number, (S is for 'suggested' after all) not an actual controlling factor in either the buying or selling price.

 

This is a great point I hadn’t thought of, may keep used prices above previously established baseline pricing far longer than many expect. Instead of correcting in 2-3 years it may be more like 10

edit: last year I sold my 18 Tacoma with 50k miles for $35k, today I sold my 2021 crosstrek for above what I paid msrp in august, new taco arrives this week(at msrp) and I’m up a bunch in the $ game. I think for most it’s a wash if they were to pay more simply because their trades are fetching more. If not they may have been upside down in the first place and what’s a few more grand right? Haha good luck to all

 

If the chip shortage stops and no shortage of parts the market will return to normal. Supply and demand control all markets. I work as a parts manager at a dealership and it's not getting any better soon. More and more shortages every week.... oil is terrible right now and so are tires if you want a certain brand or type.

 

Doesn’t matter, nukes will fly before then. Just YOLO a $80k TRD PRO.

 

When the prices of new cars comes down no one is going to give a rats ass what you paid 3 years ago. If you can’t be competitive compared to new then you aren’t competitive at all. Prices for used is already down

 

Prices for large suv and trucks is down. Small fuel efficient vehicles are up particularly electric

 

Especially so if it is true that by 2028 all new cars will be EV. No more gas engine vehicles.