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Average used car price in United States is now 29k



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 5 months ago '20        #1
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Ninjahood  topics gone triple plat - Number 1 spot x1
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Average used car price in United States is now 29k
 

 
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$29,000 for an Average Used Car? Would-Be Buyers Are Aghast
Prices for used cars are soaring so high, so fast, that buyers are being increasingly priced out of the market.

By a*sociated Press
|
Jan. 3, 2022

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U.S. News & World Report
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The a*sociated Press
A dealership sign is seen outside of Honda certified used car dealership in Schaumburg, Ill., Thursday, Dec. 16, 2021. Prices for used cars have soared so high, so fast, that buyers are being increasingly priced out of the market. (AP Photo/Nam Y. Huh) THE a*sOCIATED PRESS

By TOM KRISHER, AP Auto Writer

DETROIT (AP) — A couple of months ago, a woman paid a visit to Jeff Schrier's used car lot in Omaha, Nebraska. She was on a tight budget, she said, and was desperate for a vehicle to commute to work.


"'That's what I get for $7,500? ‘" he recalled her saying. The vehicles had far more age or mileage on them than she had expected for something to replace a car that had been totaled in a crash.

The woman eventually settled on a 2013 Toyota Scion with a whopping 160,000 miles on it. Schrier isn’t sure he made any profit on the deal. "We just helped her out," he said.

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As prices for used vehicles blow past any seemingly rational level, it is the kind of scenario playing out at many auto dealerships across the country. Prices have soared so high, so fast, that buyers are being increasingly priced out of the market.

Consider that the average price of a used vehicle in the United States in November, according to Edmunds.com, was $29,011 — a dizzying 39% more than just 12 months earlier. And for the first time that anyone can recall, more than half of America's households have less income than is considered necessary to buy the average-priced used vehicle.

The days when just about anyone with a steady income could wander onto an auto lot and snag a reliable late-model car or buy their kid's first vehicle for a few thousand dollars have essentially vanished.

“I’ve never seen anything remotely close to this — it’s craziness,” said Schrier, who has been selling autos for 35 years. “It’s quite frustrating for so many people right now.”

When the government reported that consumer inflation rocketed 6.8% in the 12 months that ended in November — the sharpest jump in nearly 40 years — the biggest factor, apart from energy, was used vehicles. And while the rate of increase is slowing, most experts say the inflated vehicle prices aren't likely to ease for the foreseeable future.

The blame can be traced directly to the pandemic's eruption in March of last year. Auto plants suspended production to try to slow the virus’ spread. As sales of new vehicles sank, fewer people traded in used cars and trucks. At the same time, demand for laptops and monitors from people stuck at home led semiconductor makers to shift production from autos, which depend on such chips, to consumer electronics.

When a swifter-than-expected economic rebound boosted demand for vehicles, auto plants tried to restore full production. But chip makers couldn’t respond fast enough. And rental car companies and other fleet buyers, unable to acquire new vehicles, stopped off-loading older ones, thereby compounding the shortage of used vehicles.

Bleak as the market is for used-car buyers, the computer chip shortage has also driven new-vehicle prices higher. The average new vehicle, Edmunds.com says, is edging toward $46,000.

Even so, prices of used cars are likely to edge closer to new ones. Since the pandemic started, used vehicle prices have jumped 42% — more than double the increase for new ones. Last month, the average used vehicle price was 63% of the average new vehicle cost. Before the pandemic, it was 54%.

At this point, Schrier has to tell lower-income buyers that he has very few used vehicles to sell them.

“What used to be a $5,000 car," he said, “is now $8,000. What used to be $8,000 is now $11,000 or $12,000.”

Including taxes, fees, a 10% down payment, and an interest rate of around 7.5%, the average used vehicle now costs $520 a month, even when financed for the average of nearly six years, Edmunds calculated.

To make that payment and afford such other necessities as housing, food and utilities, a household would have to take home about $60,000 a year, or $75,000 before taxes, said Kimberly Palmer, a personal finance specialist at NerdWallet. In 2020, the U.S. median pretax household income was $67,521, the Census Bureau says.

“The average person," Palmer said, “can’t afford the average used car right now.”

Ivan Drury, a senior manager at Edmunds, said that while he doesn’t track used vehicle prices relative to household income, he thinks November marked a record “in the worst way possible for affordability.”

Monthly payments for the average used vehicle, he noted, were $413 two years ago, $382 five years ago and $365 a decade ago. The November average payment of $500-plus for a used vehicle, Drury said, is about the average that was needed five years ago for a brand-new vehicle.

“People are going to have to make hard decisions, maybe cut back in other areas,” Palmer said. “It means that it’s stressful for a lot of families.”

Used vehicle prices are so high that Karl Hogan of Canonsburg, Pennsylvania, near Pittsburgh, was able last month to quickly sell his 2007 Toyota Tacoma small pickup truck, with more than 170,000 miles on it. Even with the vehicle's age and mileage, a man from Ohio forked over $6,500 for it.

Hogan didn’t have to budge from the asking price. When some would-be buyers offered him less money, he told them: “I’ve got 12 other guys behind you.”

A week before the sale, when he bought his new Tacoma, Hogan had been on the other side of the equation. The dealer wouldn’t budge from his $38,000 sticker price.

“If I didn’t take it," Hogan said, "there were three people waiting. I couldn’t get any off, but I wanted a new truck.”

David Paris, a senior manager at J.D. Power, noted that used vehicle prices are directly tied to the cost of new ones. Though some automakers report that the computer chip supply is gradually improving, prices paid by dealers at used vehicle auctions kept rising through November, Paris said.

“We’re not seeing any softening in prices, which is extremely rare for this time of the year,” he said.

New vehicle dealers have about 1 million vehicles available nationally — scarcely one-third of the normal supply, Paris said. And the vast majority have already been sold.

Given pent-up demand from consumers, prices for new vehicles are expected to remain historically high until the supply returns to around 2 million or 2.5 million and automakers resume discounting, which could take well into 2023. Once new vehicle prices do ease, the pressure on used-vehicle prices would eventually follow.

Yet even after that, the availability of vehicles will be tight because traditional sources of used vehicles — autos turned in from leases and trade-ins or sold by rental companies — have essentially dried up.

For the past decade, cars returning from two- and three-year leases were a leading source of almost-new used vehicles. But that was when more than one-third of U.S. new vehicle sales were leases, a figure now down to 22%, said Edmunds’ Drury. Because there aren’t many new autos, people with expiring leases are often buying those cars once their leases end.

Rental companies, another key source of late-model used cars, can’t buy new ones now and are holding the ones they have. Some rental companies are even buying used vehicles. Given all those factors, Paris expects the shortage of used cars to worsen through 2024.

Among the few consumers who stand to benefit are those who want to sell a used car and don't necessarily need to replace it. The average trade-in value in October, Paris said, was $9,000 — twice what it was a year earlier.

But for people who have no vehicles to trade in and only modest incomes, the options are few to none. Palmer of Nerdwallet said lower-income people may simply have to pay for repairs to keep a current vehicle running as long as possible. Even that option, though, can become prohibitively expensive.

J.D. Power’s Paris says that if they can afford it, buyers should consider a new vehicle. He recently managed to get a couple thousand dollars whacked off the sticker price on a new Ram pickup, though he had to travel from the Washington, D.C., area to Philadelphia to reach a willing dealer he had located by searching internet forums.

“If you look hard enough and are willing to wait and travel," he said, “you can find deals across most brands.”

Copyright 2022 The a*sociated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.





visit this link https://www.usnews.com/ne .. ers-are-aghast

If you got a hooptie in decent shape now is da time to get rid of it if u wanna offload it.



Last edited by Ninjahood; 01-04-2022 at 03:14 PM..
+9   



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 5 months ago '20        #2
Ninjahood  topics gone triple plat - Number 1 spot x1 OP
Props total: 9773 9 K  Slaps total: 1406 1 K

+2   

 5 months ago '19        #3
PolloFrito 
Props total: 1467 1 K  Slaps total: 113 113
Better off getting that new Nissan Z @ 35K than going used with these prices..
+12   

 5 months ago '15        #4
Suave Mente  topics gone triple plat - Number 1 spot x1
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I was gonna grab that F150 Lightning, then I saw an article said they marking em up by like 30k.


+22   

 5 months ago '17        #5
Its 
Props total: 37658 37 K  Slaps total: 2860 2 K
Bruh sh*t crazy
The xf r sports i was looking at when from around 28k to 35k
I decided imma go another direction now lol
+5   

 5 months ago '17        #6
Its 
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 Suave Mente said
I was gonna grab that F150 Lightning, then I saw an article said they marking em up by like 30k.


200k ppl signed up to buy them directly from Ford. I don't think that many even exist yet
Ford stocks did numbers this week
+7   

 5 months ago '15        #7
PolygonMafia 
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The dealership I bought my '15 Hyundai Sonata hybrid at hit me up a few weeks ago basically trying to buy it back at like 1000 less than what I bought it for even though I've doubled the miles on it.

Thought sh*t was sweet and it'd be a good time to upgrade. Nope. I want one of those rav4 hybrids and that bi*ch is damn near 40k after bells and whistles. I'll take having 0 car payment and a working whip over saddling up on a 20k car note.

sh*t is stupid expensive across the board right now. Got me yelling at my girl for going to whole foods. bi*ch we are a Safeway/QFC or below household, the fu*k you think I'm spending $120 on 2 meals for us?
+34   

 5 months ago '18        #8
Mr Tibbs 
Props total: 32646 32 K  Slaps total: 3058 3 K
aint prices supposed to drop in march/april.


Last edited by Mr Tibbs; 01-04-2022 at 07:03 PM..
+2   

 5 months ago '12        #9
fcm415 
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 PolloFrito said
Better off getting that new Nissan Z @ 35K than going used with these prices..
Yeah but most dealers are upcharging even basic commuter cars so a hot new desired model like the Z will be hard to order and likely will be over 10k above sticker price. I’ve never seen a time where every dealer I go to, the staff have been snobby or courteous but dismissive. Soon as you entered the stealership about ten MFers used to ride your d*ck.
+6   

 5 months ago '18        #10
dogfood2 
Props total: 21632 21 K  Slaps total: 13535 13 K
Shout out to Biden and his administration. fu*king up everything in such a short time.

+5   

 5 months ago '12        #11
fcm415 
Props total: 4393 4 K  Slaps total: 1182 1 K
I want to stretch my budget and get a AMG CLA45 and any markup is out the window. Gonna have to wait it out. I want to experience fossil fuel greatness before everything goes electric….

and we realize that electricity demand at such a scale will have it’s own set of problems. Just switching from greedy oil barons to greedy power grid ones.
+7   

 5 months ago '17        #12
Wavegawd 
Props total: 6765 6 K  Slaps total: 1164 1 K
Just finished paying off a whip today. Looks like I might be ahead ..
+17   

 5 months ago '20        #13
Ninjahood  topics gone triple plat - Number 1 spot x1 OP
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 fcm415 said
I want to stretch my budget and get a AMG CLA45 and any markup is out the window. Gonna have to wait it out

Mercedes Benz just cancelled that car....

So unless you buy one now you're going to have to buy it used in a few years....
+1   

 5 months ago '21        #14
its skii  topics gone triple plat - Number 1 spot x1
Props total: 1789 1 K  Slaps total: 112 112
I just got offered 30k for 16 chevy silverado 74k miles. I bought it from same dealiership for 28k 2 years ago. Deal sounds great but new contract for a new truck sound like they will fu*k me over. all set.
+10   

 5 months ago '14        #15
Bigboi781  topics gone triple plat - Number 1 spot x22
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This is retarded. My dad had told me buy a car buy car for last 3 years. Car he bought last year, he’s getting offers 5000 bucks above price he paid and this is after driving it for a year. Cars are way too expensive rn
+9   

 5 months ago '07        #16
Deniro732 
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Hell nah wtf. You can get a used car for a few thousand. 29k my a*s


Last edited by Deniro732; 01-05-2022 at 11:44 PM..
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 5 months ago '08        #17
Kewop Decam  topics gone triple plat - Number 1 spot x1
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Are leasing prices getting crazy also?
+3   

 5 months ago '14        #18
Bigboi781  topics gone triple plat - Number 1 spot x22
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 dogfood2 said
Shout out to Biden and his administration. fu*king up everything in such a short time.

Huh, have you been out the loop. Cars have been expensive before Biden even got in office. Corona and supply chain issues fueled this. Do some of you not pay attention to news other than clickbait?
+6   

 5 months ago '18        #19
dogfood2 
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 Bigboi781 said
Huh, have you been out the loop. Cars have been expensive before Biden even got in office. Corona and supply chain issues fueled this. Do some of you not pay attention to news other than clickbait?
Biden and Harris the worst combo in white house history. You sound like a dumbass who gets his news from mainstream media.
-11   

 5 months ago '05        #20
Fresh  topics gone triple plat - Number 1 spot x6
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 Mr Tibbs said
aint prices supposed to drop march/april.
....Thats Not Happening. Prices Been On That Bullsh*t Since Last Year Around This Same Time and They Said They Wont Be Going Down Soon.

Even The Auctions Charging For The High. So If You Trying Get A Car During Tax Season, Prepare To Throw It All In with A High a*s Note.
+8   

 5 months ago '16        #21
ELAH MENTAT 
Props total: 26024 26 K  Slaps total: 2022 2 K
Glad I work at the dealership…

Even I got taxed for my Touring 2.0T…

But I’m taxing everyday…

It’s the market…

+2   

 5 months ago '14        #22
Bigboi781  topics gone triple plat - Number 1 spot x22
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 dogfood2 said
Biden and Harris the worst combo in white house history. You sound like a dumbass who gets his news from mainstream media.
How so? Explain
-1   

 5 months ago '04        #23
xbossxplayax 
Props total: 25409 25 K  Slaps total: 4500 4 K
yea its unbelievable. one of my mindless past time favorite is browsing used car listings lookin for gems but i aint been able to do that in a min without sayin tf...
+9   

 5 months ago '04        #24
Duntaz  topics gone triple plat - Number 1 spot x4
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I'm tryin to buy a spyder rally I don't think bikes/trikes are inflated are they

 5 months ago '08        #25
Kewop Decam  topics gone triple plat - Number 1 spot x1
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 ELAH MENTAT said
Glad I work at the dealership…

Even I got taxed for my Touring 2.0T…

But I’m taxing everyday…

It’s the market…

Is leasing pricing also up at the dealerships?
+1   



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