Prices collapsing on new (and used)

[Jrgunn5150]

That's great! Personally I'd rather take a auto loan at a low rate and invest 45k into something that would make me money rather than devalue 7% as soon as I drove it off the lot .

This is why inflation will never stop.

Deflation would mean no one could afford debt, and people will not give up debt.

Then scream that houses, cars, college used to cost less.

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[Dickster]

This is nothing New in the auto world. This happens every time the economy tanks and its not just jeep doing it either. When dealerships and manufactures start offering incentives that means sale are slow and they need to move inventory. During covid you saw no special financing or incentives. Take a look at Ford Broncos they are slashing prices as well. It was not too long ago once you signed and drove it off the lot you would lose 10-20% right out the gate I dont know why people are freaking out now......

 

[ScottBeach]

My old 2020 sport was only worth 22k on trade. (Values are down) but then got 21k off msrp on purchase of a 2024. I guess it stinks when your trade value is down but if you are selling you are likely replacing it.

3 years ago trade values were high. But no discounts on new. I will take a 6k clip on trade value for a 21k clip on new car price. todays market is better. Unless you are selling and not buying.

 

[bleda2002]

This is nothing New in the auto world. This happens every time the economy tanks and its not just jeep doing it either. When dealerships and manufactures start offering incentives that means sale are slow and they need to move inventory. During covid you saw no special financing or incentives. Take a look at Ford Broncos they are slashing prices as well. It was not too long ago once you signed and drove it off the lot you would lose 10-20% right out the gate I dont know why people are freaking out now......

So much this, it's like people forgot how buying a car worked pre-2022. I remember expecting a minimum of 10% off any new car and on trucks 15% was the usual starting point for negotions and that was just business as usual, not during an economic dump.

The issue with cars is the same as houses, they jacked the prices because the interest was low so for the same 800 dollar payment then you bought a 60k truck, now that 800 dollar payment gets you a 50k truck. They don't want to say they're slashing MSRP, but they know they have to lower the price some how.

 

[Dickster]

So much this, it's like people forgot how buying a car worked pre-2022. I remember expecting a minimum of 10% off any new car and on trucks 15% was the usual starting point for negotions and that was just business as usual, not during an economic dump.

The issue with cars is the same as houses, they jacked the prices because the interest was low so for the same 800 dollar payment then you bought a 60k truck, now that 800 dollar payment gets you a 50k truck. They don't want to say they're slashing MSRP, but they know they have to lower the price some how.

yep i never bought a New truck for that reason always 1-2 years old with 20k miles on it. Covid was a perfect storm that made people forget. Low interest rates, no inventory, EVERYTHING over original price even houses, food, beer. People Job hopping for the next raise, Companies over paying people because they could keep workers, Government giving out free money to stay home. Now were back to correction and its very bitter for a lot of people, wages will correct themselves and high prices will be forced to come back down.

Just in Portland Oregon metro area construction is down 40%..... Lots of jobs lost and in 5 years this is the first time i have had guys call me and come into my office looking for work.

 

[Deleted member 57233]

I just bought a "used" 2023 Willys diesel with 5500 on it for $35k out the door, window sticker was $62k. They gave me more than I paid new for my 2018 VW Alltrack in trade, so I guess trade values are only down for some vehicles.

 

[berb]

All this is, is Market Correction. Because of Covid and Supply Chain issues people were paying stupid prices for everything and Stellantis overshot with their pricing and then were shocked when their sales plummeted. Jeeps are just coming down to precovid prices. I feel bad for people who bought between 2021 and 2023. I have a 2020 and between 2021 and 2022 I could have traded in my Jeep for a better trim and lowered my payment.
Why didn't I? Because I am dumb and regret it all the time.
The worst part of it, is they ruined everyone's resale and trade in values.

 

[GeneralMaximus]

It was not too long ago once you signed and drove it off the lot you would lose 10-20% right out the gate I dont know why people are freaking out now......

Its because people have short memories and the last thing a lot of them remember is from the Covid era. Everyone’s cars appreciated in value. Heck, dealers were offering to buy out your lease plus give you a bonus lump sum of cash. Those were definitely not normal times.

 

[Dickster]

Its because people have short memories and the last thing a lot of them remember is from the Covid era. Everyone’s cars appreciated in value. Heck, dealers were offering to buy out your lease plus give you a bonus lump sum of cash. Those were definitely not normal times.

Yep great trade in but high prices on vehicles typically it was over msrp. Now we're at low trade in and incentives. It almost equals out but people that paid over msrp just to get a vehicle and looking trading in now LMAO. Sooooo much negative equity.

 

[Jrgunn5150]

Just the beginning, they'll continue the rebates until the metal is moving again.

And used values are going to tank, market is correcting itself.

In this forum, it's the high end models, on the Ram trucks, there's a lot of reg cab 8' bed Tradesmans floating around.

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