Will used car prices drop at dealerships?

[Anonymous]

I assume used car prices will go up, especially for reliable cars.

New car prices may come down, as most people won't be able to afford them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Admittedly, it's more difficult to know whether you're getting a good deal or not when used car shopping. Having said that, I've been casually looking at certain used models for several months and haven't seen any price drops (at least in terms of what they are posting). Do you assume there is more flexibility there also, understanding the margins may be smaller than what could be gotten with a new car purchase?

I expect them to go up because so many people are unable to pay for a new car, unless it is tiny.

I think used car prices will come down somewhat. I agree with that people will prefer used versus new, however, there was already a high demand (used + new) prior to CV19. Demand will definitely shift from new to used (substitution effect), but the overall demand for cars will decrease also. Given the magnitude of this issue and impacts on the economy, I think the overall impact on car sales will be much larger than the new-to-used substitution effect thus decreased price for used cars. Car with higher price tags and generally more fun but less practical cars (e.g. 2 seaters) may experience bigger declines in price.

[Anonymous]

70% decline in car sales in the DMV - outlook is that prices will continue to drop

https://wtop.com/business-finance/2020/04/dc-area-car-sales-down-an-estimated-70-because-of-the-coronavirus/

[Anonymous]

The other piece of this is that younger buyers before this were not owing a lot of cars. And many of the rest of the population had already refreshed our cars in the last 5 years or so. Cars run for a long time now so unless you need to upgrade for more space or different utility, people are not going to be upgrading anytime soon.

[Anonymous]

This is what my wife and I are hoping for...she’s been saving for an Audi convertible for a few years. All cash deal.

“Car with higher price tags and generally more fun but less practical cars (e.g. 2 seaters) may experience bigger declines in price.”

[Anonymous]

^^^
Best of luck. Must be nice in these trying times.

[Anonymous]

I think you’ll probably get a wicked deal on a new car at year end for current year or previous left years overs . They are going to have to move these new cars quickly once the market opens back up.

[Anonymous]

Manheim auction prices dropping like a stone. Rental outfits need to offload cars.

Will be deals galore for used and new. Wait 45 days.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’ve been following two used cars I’m interested in and the prices have dropped weekly.

Same here. Convertibles.

Nice. Enjoy. I’ve been eyeing up some sweet range rovers around three years old.

I’m not seeing any decreases. What websites do you follow?

I’m on a couple Land Rover sites. You save the car and it emails you when the price drops.

[Anonymous]

Anonymous wrote:Manheim auction prices dropping like a stone. Rental outfits need to offload cars.

Will be deals galore for used and new. Wait 45 days.

GM leasing and rental companies are going to take a bath, from articles I read. Big write downs in residual values. It will take a few months to shake out, but used car prices are expected to fall. Not 50% mind you.

Its just a factor of when times are tough, it pull out all the "I wanna" car buyers and you're left with the "I need a" buyers. Like all else in this economy so much of it is non-essential.

[Anonymous]

A vehicle came up that matched some long-standing search criteria I had. It was a used crew cab pickup truck. The dealership didn't seem very interested in making a deal. It was offered about $632 less than KBB.

I asked about seeing a vehicle at a new car dealership and they won't seem to leave me alone. However, I don't know how much movement they are doing to have on prices. However, I can't tell if this is different than their normal behavior. It seems about the same. Five different people contacting me from the same dealership and three of them are likely robots.