Trade-In Values Dropping Faster than Order Progress

[HighDesertRanger]

A lot of people dont know its an option. I have been in auto sales for almost 2 decades. Its something we offer customers(at least here in NJ), when the market is volatile and assets depreciate faster than usual. This is so they can lock in the trade value towards the new vehicle regardless when the new one arrives.

I've been in the business for a while and I've never heard of that. Wonder if it's a NJ thing?

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[HyperM3]

I've been in the business for a while and I've never heard of that. Wonder if it's a NJ thing?

Possible, just like some brands used to allow MSD(multiple security deposits) to bring down lease payments.

 

[Velociraptor]

I'm sure this is a universal experience at this point, but at the beginning of the ordering process I was pretty in the green with my trade-in that's going towards my RRaptor. Now that my RRaptor has been marked as in production, a double check of my trade value shows that I'm in fact now $4k in the hole! That's an almost $6k drop in trade value in about 2.5 months (according to KBB). If used car values keep dropping this fast, I'm confident that my entire down payment will be swallowed by the negative equity I'm suddenly left holding. Who else out there is sharing my pain?

For those curious, my trade is a 2019 Audi A6 Prestige in near-mint condition

Values are dropping fast. I had a 2023 TLX type S I paid 59K for one year ago and I sold it for 47.5K a few weeks ago. Pretty sad lol.

 

[markal49]

That’s a bummer. I bought an XLT FX4, not a Raptor, and the XLTs are now discounted locally. So it probably would have been a wash for me. But I don’t think you’ll get any discount on a Raptor. Can you cancel and wait? It sure seems like big discounts are coming in the next year.

 

[Dingus83]

Values are dropping fast. I had a 2023 TLX type S I paid 59K for one year ago and I sold it for 47.5K a few weeks ago. Pretty sad lol.

How did you like the Type S? I find the styling to be amazing on those cars. I don’t see any around here, hopefully they keep making them.

 

[Velociraptor]

How did you like the Type S? I find the styling to be amazing on those cars. I don’t see any around here, hopefully they keep making them.

I liked it. Was a bit on the heavy side, could use a diet or a little more ponies to make up for it. But it was a nice car and not many floating around. Had to sell it to get something more family oriented.

 

[JackpotRR]

the used car market is changing for sure!......I just traded in my 2021 Ranger Lariat Tremor with 31,500 miles for $31,000......Carmax offered my $30k so I was real happy with $31k.........but what is weird is that KBB says it's worth $33K-$35k for a trade-in but I know that not right because their is a Lexus dealer 5 minutes from me selling an almost identical 2021 Ranger Lariat Tremor with 35,000 miles with also a clean Carfax for $34,250......that's retail of course and it's been at the lot for over a month ......and they did 4 new tires, an oil change and an alignment so yes they put in probable $1,000 into it......so I feel real glad to have gotten $31k for mine......even though I paid $2k over for my Ranger Raptor......and to think my Lariat Tremor was $47k back in Oct. 2021 when I bought it.....I personally think the Ranger Raptor is a steal at $60k all things considered......compare it to the new Taco TRD Pro or the ZR2 Bison which are $5k more.....the RR gives you more for less $$!

 

[Dubfound]

the used car market is changing for sure!......I just traded in my 2021 Ranger Lariat Tremor with 31,500 miles for $31,000......Carmax offered my $30k so I was real happy with $31k.........but what is weird is that KBB says it's worth $33K-$35k for a trade-in but I know that not right because their is a Lexus dealer 5 minutes from me selling an almost identical 2021 Ranger Lariat Tremor with 35,000 miles with also a clean Carfax for $34,250......that's retail of course and it's been at the lot for over a month ......and they did 4 new tires, an oil change and an alignment so yes they put in probable $1,000 into it......so I feel real glad to have gotten $31k for mine......even though I paid $2k over for my Ranger Raptor......and to think my Lariat Tremor was $47k back in Oct. 2021 when I bought it.....I personally think the Ranger Raptor is a steal at $60k all things considered......compare it to the new Taco TRD Pro or the ZR2 Bison which are $5k more.....the RR gives you more for less $$!

The Ranger Raptor is a total bargain for around $60k. I couldn’t be happier with mine and have like 6k miles on it. Only few minor issues so far and nothing to sweat about.

 

[stemplar]

Oh do I feel your pain! My 2022 Genesis GV80 had a list of $68,000 new and when I placed the order for my Lariat in May, the Blue Book was $41,000. As I have done more research I find that "luxury cars" are known for that type of hit. I'm waiting to see how far down the pike the value has gone when my truck comes in later this month or early next month.

I talked to a friend who always seems to be driving the high end cars and I asked him about the depreciation hit. I was surprised when he told me that he never buys new. He just waits and buys a two or three year old car used with less than 30,000 miles. He saves about $30-40k per car.

I’ve been driving Mercedes and BMW’s for the last 30 years, and before Covid hit my rule of thumb was I’d pay roughly half of new msrp for a 2 1/2 - 3 year old CPO vehicle with less than 30k miles. Its not back to that yet, so I’ll be buying a ‘25 lariat v6 new as soon as they’re available.

 

[Peter949]

We are heading into a recession but I believe we were are already in one with the Feds playing funny business with numbers to say we aren't in one. The car market is going to reset hard with the price of vehicles. Matter of time and compounding factors. The lots are bloated for the poor selling brands like Ram and Jeep already.

 

[Jeffola]

I got flat out destroyed on my trade, but I had it for less than 5 months and even though I got a great deal on it, I lost about 15% of price paid. Was a ‘24 Honda Pilot Trailsport. And to be honest, I got rid of it because it was so underwhelming.

 

[Hootbro]

I laughed at the $1100 trade offered by the dealer and sold it in 2 days on Craigslist for $2500 cash with no attempted haggling.

On a 17+ year old vehicle, that would have been a send straight to auction for most new car dealerships or kicked to a "buy here, pay here" local lot. $1100 offer is not bad on something they would have been lucky to make $500 sending to auction.

 

[SubaruRaptor]

People buying cars as an investment are living in a fantasy. Only very specific cars go up in value, and generally speaking those are cars are not available to the general public. If an average car does go up, it tends to be after many years because they either all got clapped out and people want good examples or people realize its a neat car.

People acting like they paid 60k + on a vehicle and then are pikachu shocked face that it isnt worth 60k, i just dont understand. Vehicles, just like computers, just like phones are disposable items at the end of the day. You pay to have it new/first.

Maybe its because I tend to pay off all my vehicles and keep them longer that it doesnt matter to me or I dont understand.

 

[Peter949]

People buying cars as an investment are living in a fantasy. Only very specific cars go up in value, and generally speaking those are cars are not available to the general public. If an average car does go up, it tends to be after many years because they either all got clapped out and people want good examples or people realize its a neat car.

People acting like they paid 60k + on a vehicle and then are pikachu shocked face that it isnt worth 60k, i just dont understand. Vehicles, just like computers, just like phones are disposable items at the end of the day. You pay to have it new/first.

Maybe its because I tend to pay off all my vehicles and keep them longer that it doesnt matter to me or I dont understand.

It's a depreciating asset the moment drive off the lot. People are living in fantasy land and were stupid to pay over msrp and wonder why they are so underwater.

 

[SubaruRaptor]

It's a depreciating asset the moment drive off the lot. People are living in fantasy land and were stupid to pay over msrp and wonder why they are so underwater.

Id argue the concept of under or above water doesnt exist. Until a person sells their car the numbers are just theoretical. The concept of not being able to get out from a car if you needed exists, but until a car is actually sold everyone is in debt, thus underwater regardless as you have a loan.

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