Trade-In Values Dropping Faster than Order Progress

[Peter949]

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.

I don't disagree. It's only underwater once you try to extract monetary value.

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[Fattirz in NC]

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.

2005 Freestyle to 2016 Pilot, so 11 years difference not 17. It was a clean vehicle with only 140k on odometer and no issues. My point is us (the sellers) often have less to loose than settling with a dealer trade in offer.

 

[Cjhalili]

Depreciation is something i considered on buying my RR. I paid 5k markup and alot of people think im nuts. In SoCal, MSRP is a myth pretty much. The way I saw it is that I need to replace my truck and I was set on the RR as my 1st choice. The more I saw how fun it was, all my other choices disappeared.

Some people settled for other options and planning to wait until price drops. They will probably lose on depreciation more than just paying the markup when that time comes and it settles in price, if it even settles, altho I do admit anything over 7 to 8k markup is hard to swallow.

 

[PawnX]

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.

Yep my friend is always doing this also.
He got an insane deal on his Jag.

 

[SubaruRaptor]

Depreciation is something i considered on buying my RR. I paid 5k markup and alot of people think im nuts. In SoCal, MSRP is a myth pretty much. The way I saw it is that I need to replace my truck and I was set on the RR as my 1st choice. The more I saw how fun it was, all my other choices disappeared.

Some people settled for other options and planning to wait until price drops. They will probably lose on depreciation more than just paying the markup when that time comes and it settles in price, if it even settles, altho I do admit anything over 7 to 8k markup is hard to swallow.

I also paid 5k markup on mine because I wanted it now. Sure could I have found another dealer to sell to me at MSRP, you bet, but would I have to compromise on some options or spend a bunch of money to ship or fly out to get it, probably.

Also new car prices are not going down, the 25 RR will most likely increase in price by 5 to 10k. So to me, it makes sense to buy now even with a 5k RR knowing that I will be at the lowest entry cost in totality.

I do agree that anything over 5k, is a bit much though and would be worth the wait at that price point.

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