We’re screwed! [ADMIN WARNING: NO POLITICS. MEMBERS BANNED]

[Gvsukids]

Now I know why my 2022 JT with 8,000 miles that I bought in 2021 is worth practically nothing!! I paid $54K and dumped over $7K into it like a sucker! Now the most I can get towards a trade in is $33K. Something needs to change! Trucks full size or JT’s should NOT cost this much!

So did you get the response you thought you would?

Sponsored

 

[Mr.Wilson]

My main issue is the JT’s are being priced at ridiculously high prices!! As well as every other truck. I looked a 1/2 ton ram the other day that was modestly equipped and it was still $65,000 after a $5,000 discount. The prices of the vehicles we buy are too high. At what point does it stop and when do banks begin to stop shelling out $100K for a truck that’s not going to be worth squat after 2 years?

 

[Rainman519]

Don't look now boys and girls, but the housing market is doing the same thing. It too, will make one of the largest corrections in our lifetimes in the coming 12-24 months. Those folks who took the equity out of their homes when home prices were seriously inflated (and put in pools, took vacations etc) are screwed to the wall now. The car market is just more visible to most of us here.

 

[MPMB]

This is really only a Jeep thing. The rest of the midsize truck market is priced appropriately for what you get, hence the no Gladiator sales.

There's always been a "Jeep" premium over the past decade that I've noticed. My buddy bought a used '18 JLU before C19 in the upper $30s. Had another buddy get a year-end closeout new JLU for under $30k.

Tacomas have gone up in price; the new '24 Tacoma 4-cyl TRD Off-Road is $46k. We looked at Tacomas before the Gladiator and they were about $10k less on average. We were quoted $42k + $2500 ADM for a TRD Off-Road with all the major options (not the dealer-installed ones like mudflaps or chrome lugnuts). They wouldn't budge on the ADM, so we walked. We spent about $10k more for the Gladiator and got a bunch more options and features.

So yeah, there will be those extreme listings where dealers think some sucker will buy it at "this" price. If nothing else, they'll discount it $10k and still make money on it.

 

[Hootbro]

For some reason people seem to look at these as "investments" and figure hey, the value will never drop by much.

I am sure there is a handful of people that think that way, but most people have realistic expectation that prices and value do drop once you purchase.

I think the biggest disconnect is that people are use to the market pre-COVID (2019) and back. Most people in the truck market always knew that most dealerships kept high days supply and discounts of some type were usually the norm with many full size trucks having $10K+ in rebates and incentives. So for example if a $40K MSRP truck was bought for $30K and then after 2 year or so was now only worth $20K, the buyer really only was down $10K or so when looking to trade.

Today, you have higher MSRP prices driven by both inflation and consolidated option packaging from years past now being standard equipment driving vehicle base prices at away higher rate than years past. So even with the high MSRP % discounts now that drive trade in prices even lower, there is way higher Delta of trading in pricing vs. new vehicle pricing even with incentives. This is the kind of shit we get when the govt. gives free money screwing up natural market forces that would have kept most of this under control.

It will eventually level out but there will be a new normal people will have to adjust to and it will not be a cheaper one.

Edit: I will also add one thing that is flying under the radar and not being reported much, is that legacy ICE manufacturers are taking financial loss bath in the billions in the govt. mandated drive to convert to electric. This higher cost is also being passed on to current ICE manufacturing to make up for it.

 

[916WI]

Don't look now boys and girls, but the housing market is doing the same thing. It too, will make one of the largest corrections in our lifetimes in the coming 12-24 months. Those folks who took the equity out of their homes when home prices were seriously inflated (and put in pools, took vacations etc) are screwed to the wall now. The car market is just more visible to most of us here.

That's wishful thinking--I hope that's the case because I would like to pick something up, but all indicators say the opposite is true. Banks have tightened lending considerably since 2008. People had also locked in at historically low interest rates that are unlikely to come back anytime soon-they are not going anywhere. With low inventory of existing and escalating labor/material costs when new construction is considered, I can't see how housing prices are going to drop even a little in the next year or two........

 

[MPMB]

Don't look now boys and girls, but the housing market is doing the same thing. It too, will make one of the largest corrections in our lifetimes in the coming 12-24 months. Those folks who took the equity out of their homes when home prices were seriously inflated (and put in pools, took vacations etc) are screwed to the wall now. The car market is just more visible to most of us here.

Depends on your location.

At the height of C19 in 2022, our home in Washington was "valued" at over $850k; a neighbor sold their remodeled home for just over $1m. We bought in 2016 at $435k.

A new construction home half the size of ours was sold for $517k in the same area. One slightly smaller, but on a much smaller lot (about 3000sqft smaller) is just over $900k right now.

 

[Redfour5]

Now I know why my 2022 JT with 8,000 miles that I bought in 2021 is worth practically nothing!! I paid $54K and dumped over $7K into it like a sucker! Now the most I can get towards a trade in is $33K. Something needs to change! Trucks full size or JT’s should NOT cost this much!

I agree, but I'm getting one that has an MSRP of just barely below 61K but the dealer is taking 15% off MSRP matching the Stellantis 15% off so I'm down right at 42K and it is pretty loaded in a Freedom Edition. That is the ONLY reason I'm pulling the trigger.

 

[Alpine Warthog]

Guys, I know we're mostly focused on Jeep in this group but in reality, Jeep isn't even in the top 5 worst selling vehicles right now. Cherokee is number 9 and I have a feeling it's because this is it's final year. (I also think the seats are too tiny but that's me) ?
From 5th of Dec:

 

[Gvsukids]

My main issue is the JT’s are being priced at ridiculously high prices!! As well as every other truck. I looked a 1/2 ton ram the other day that was modestly equipped and it was still $65,000 after a $5,000 discount. The prices of the vehicles we buy are too high. At what point does it stop and when do banks begin to stop shelling out $100K for a truck that’s not going to be worth squat after 2 years?

Don't buy a boat then.

 

[Hootbro]

Guys, I know we're mostly focused on Jeep in this group but in reality, Jeep isn't even in the top 5 worst selling vehicles right now. Cherokee is number 9 and I have a feeling it's because this is it's final year. (I also think the seats are too tiny but that's me) ?
From 5th of Dec:

I have a hard time wrapping my mind around that chart and Ram 2500 sales. 1602 vehicles for sale and over a 2 year estimated supply? I get the 93 sold in 45 days number is divided into the 1602, but that is pure crazy in my opinion if that is the actual market right now for them.

All my local dealers 2500's are still being offered for a kings ransom with dismal discounts compared to the Ram 1500's.

 

[sharpsicle]

My main issue is the JT’s are being priced at ridiculously high prices!! As well as every other truck. I looked a 1/2 ton ram the other day that was modestly equipped and it was still $65,000 after a $5,000 discount. The prices of the vehicles we buy are too high. At what point does it stop and when do banks begin to stop shelling out $100K for a truck that’s not going to be worth squat after 2 years?

I mean, it stops when people stop buying them. That's how the market works. But if people are willing to spend that much on a new truck, well then that becomes the value of that new truck.

Are you looking to buy? Is that why this is an issue for you right now?

 

[jac04]

...The prices of the vehicles we buy are too high. ...
... and when do banks begin to stop shelling out $100K for a truck ...

IMO, the problem is that lots of people 'buy' a vehicle with a bank's money. This makes it way too easy to overpay because "it's only another $100 on your monthly payment".

My position is that I never buy something that I can't afford to; 1) pay for up front, and 2) take a complete loss on. With this mindset, I just enjoy the vehicle that I have and never worry about what it's worth.

 

[Sandevino]

I have a hard time wrapping my mind around that chart and Ram 2500 sales. 1602 vehicles for sale and over a 2 year estimated supply? I get the 93 sold in 45 days number is dived into the 1602, but that is pure crazy in my opinion if that is the actual market right now for them.

All my local dealers 2500's are still being offered for a kings ransom with dismal discounts compared to the Ram 1500's.

2500’s are an interesting vehicle mostly used for work or to pull your toys and show off to people that don’t give a rip about you. No one’s buying a $50k work truck and those showing off want the newest of the new.

The 5 local CDJR dealers near me have a total of 12 2500’s on the lot - 3 tradesman‘s between them at $55k and the rest are Big Horn or Longhorn trim in the upper $80k range. All 12 are 2023’s and the oldest build date is Feb 2023. All models have the Cummins. Every once in a while a 6.4 Hemi shows up and is gone just as fast as it showed up.

 

[Deleted member 57233]

Don't look now boys and girls, but the housing market is doing the same thing. It too, will make one of the largest corrections in our lifetimes in the coming 12-24 months. Those folks who took the equity out of their homes when home prices were seriously inflated (and put in pools, took vacations etc) are screwed to the wall now. The car market is just more visible to most of us here.

Y'all said this 12-24 months ago. And 12-24 months before that. ?

I'm still waiting for this crippling recession you guys have been talking about since 2020. I took all the equity out of my houses at 2.75% and I'm ready to buy up cheap property. Any day now....

Sponsored