Who’s buying these overpriced JT’s?

[SnazzGlad]

Some used car places actually list the original window sticker on their overpriced car listings. This one posted below had a sticker price of $36,625 and the asking price on this completely stock used sport is $45,990. It’s unbelievable to me that people are buying used overpriced vehicles when they can get a better equipped new one cheaper. Is it that ingrained in some consumers minds that used is always less expensive?

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[MPMB]

Stupid is as stupid does.

The American people have to stop buying vehicles because they want to. People will continue to buy at inflated prices because they think they won't get a deal. Or the deal they get is for 7+ years... horrible idea.

Be okay with walking away.

I'm on the lookout for a replacement vehicle for our 2nd, getting a sense of the market. At the beginning of the year, Atlas and Tiguans were about $10k cheaper than they are right now (with our required features).

It's really going to suck for the car industry. They're screwed if buyers stick to their budgets. They're sitting on inflated inventory.

 

[NC_Overland]

I left the auto industry last year, but I was in it from 2007 till 2021. I went in fresh out of college and shortly thereafter went into internet sales and ended up running the internet departments of a lot of dealerships. I hate the US dealership model and the dinosaurs in the industry. I LOVE Carvana’s business model. I really want for them to succeed, but they are royally Fing up. They can’t even do proper titling. They lost their dealership licenses in the two biggest markets in NC. I’ve never even heard of that happening to a big dealership group. That’s some dirt lot/buy here pay here stuff.

Long story short, I wouldn’t place much validity in anything they’re doing lately. I really do hate to say that. I really wanted for them to succeed.

 

[AmosMoses01]

anything they’re doing lately. I really do hate to say that. I really wanted for them to succeed.

Yeah, agree with you totally, though I benefited from my two sales to them this year. They paid way, way more than I thought possible. Not every Internet company can lose money for years and survive like Uber. I'd love for them to succeed, but not by being dumb, and they need to execute on the fundamentals flawlessly.

 

[NC_Overland]

Yeah, agree with you totally, though I benefited from my two sales to them this year. They paid way, way more than I thought possible. Not every Internet company can lose money for years and survive like Uber. I'd love for them to succeed, but not by being dumb, and they need to execute on the fundamentals flawlessly.

Yeah, they’ve been bleeding money for years. I kinda understand that, but they should be solidly in the black by now. Their upper management and local management seems to be clueless.

Its easy to throw stones, but I just cannot wrap my head around a lot of their practices.

 

[Terry]

Stupid is as stupid does.

The American people have to stop buying vehicles because they want to. People will continue to buy at inflated prices because they think they won't get a deal. Or the deal they get is for 7+ years... horrible idea.

Be okay with walking away.

I'm on the lookout for a replacement vehicle for our 2nd, getting a sense of the market. At the beginning of the year, Atlas and Tiguans were about $10k cheaper than they are right now (with our required features).

It's really going to suck for the car industry. They're screwed if buyers stick to their budgets. They're sitting on inflated inventory.

Frankly, the American people don't have to stop doing anything that they really want to when it comes to spending their money. I've had people ask me how much I have in my Rubicon and in the build, and I tell them that they were not a party to the expense, so it's none of their business. My wife and I spent the bulk or our lives setting the standard we now enjoy.... we earned it, and we bought it.

 

[pm4045]

if they could pay too much and charge so much less what a business model

 

[ShadowsPapa]

Most people prefer buying off the lot. A lot of sales are walk-ins. People really prefer buying what they can see. Yes, they can often order cheaper but that's not how most buyers work. Things may be changing but........ Just because YOU don't like it or YOU won't pay the price doesn't mean you are like the majority. They ask this because they'll get it. Doesn't matter if you like it or not. It will sell.
See it all the time on fakebook where people see parts listed at xx dollars and they pitch a fit and say the seller is on crack and insult them and insult the buyers - and the ones complaining have no intent of buying the parts.
Anything is worth what a buyer and seller agree it's worth, it's that simple. Doesn't matter what anyone else thinks. It's a free market.

 

[1996XJ]

Maybe my logic was bad. Maybe some of you people with a lot of financial experience can chime in. I did the Gupton 7 percent below incoice. I also did a 7 year term... hear me out. My reasoning was i can always pay it off by adding extra to my payment when i can afford to. And if times are rough my payment will be lower than a 4 or 5 year term. Also basically i am able to use other peoples money and hang on to my actual money. So for at worst an extra 4 thousand dollars in interest, i got to get what i want, for 5 grand down plus taxes and hang on to all the money i have saved instead of sinking it into a huge down payment and a 4 year term. Was there something i missed in my reasoning? I mean i could of put down a lot more out of my savings and had a shorter term but it didnt make sense to me.

 

[SnazzGlad]

I really could careless if someone pays 75k for the above truck. This just seems like highway robbery to me.

I also wonder how the financing works when trying to buy a vehicle for almost 10k more than it sold for new?

 

[1996XJ]

I really could careless if someone pays 75k for the above truck. This just seems like highway robbery to me.

I also wonder how the financing works when trying to buy a vehicle for almost 10k more than it sold for new?

When i shopped locally they wanted 67K for a far less equipped truck than i could get from Gupton all custom for 51k. I agree with wondering who is paying top dollar for used cars and off the lot for something that isnt even what they want. I just tried to do the best i could for the crazy time we are in. I would not have even pulled the trigger if i had to pay the dealer crazy price of 17k over MSRP that is for sure. A friend of mine tried to get the Wrangler 392 and they wanted 25k above msrp. Gupton did it for MSRP.

 

[ShadowsPapa]

Maybe my logic was bad. Maybe some of you people with a lot of financial experience can chime in. I did the Gupton 7 percent below incoice. I also did a 7 year term... hear me out. My reasoning was i can always pay it off by adding extra to my payment when i can afford to. And if times are rough my payment will be lower than a 4 or 5 year term. Also basically i am able to use other peoples money and hang on to my actual money. So for at worst an extra 4 thousand dollars in interest, i got to get what i want, for 5 grand down plus taxes and hang on to all the money i have saved instead of sinking it into a huge down payment and a 4 year term. Was there something i missed in my reasoning? I mean i could of put down a lot more out of my savings and had a shorter term but it didnt make sense to me.

Before I retired, when we relied on both of our incomes to get by - we'd go buy things like vehicles with the loan period as long as we could stretch it out. Then we'd add more to the payment each month and pay it off in half the time or less. Same for house - when we refinanced we could have easily done a 10 year mortgage but did the full 30 again.
Then in 2002 when PFG decided they were paying about 70 of us in IT too much, they let us go. It was a period of time when it wasn't real easy to find jobs. I tried to find factory work, even retail stores as I had experience there, but nope, I was way over-qualified and they figured I'd leave them when I found something else. I went 22 months before I got on with the state in IT.
I tried telling the local manufacturers that my father worked in a factory much of his life but they looked at my history and experience. I was told several times "you are over-qualified, you won't stay here".
We stopped paying the extra on our monthly house and car payments, and got by fine. We resumed paying extra after I got a job and things settled down.
We did have to pull some from savings but going as long as we could on loan periods, my wife reading the fine print on every contract to make sure there wasn't some penalty for early payments, that sort of thing, we were able to handle it.
Using their money, stretching things out for 72 months even if you could do a 48 month period, things like that - it works out if you fall on tough times.

 

[1996XJ]

Before I retired, when we relied on both of our incomes to get by - we'd go buy things like vehicles with the loan period as long as we could stretch it out. Then we'd add more to the payment each month and pay it off in half the time or less. Same for house - when we refinanced we could have easily done a 10 year mortgage but did the full 30 again.
Then in 2002 when PFG decided they were paying about 70 of us in IT too much, they let us go. It was a period of time when it wasn't real easy to find jobs. I tried to find factory work, even retail stores as I had experience there, but nope, I was way over-qualified and they figured I'd leave them when I found something else. I went 22 months before I got on with the state in IT.
I tried telling the local manufacturers that my father worked in a factory much of his life but they looked at my history and experience. I was told several times "you are over-qualified, you won't stay here".
We stopped paying the extra on our monthly house and car payments, and got by fine. We resumed paying extra after I got a job and things settled down.
We did have to pull some from savings but going as long as we could on loan periods, my wife reading the fine print on every contract to make sure there wasn't some penalty for early payments, that sort of thing, we were able to handle it.
Using their money, stretching things out for 72 months even if you could do a 48 month period, things like that - it works out if you fall on tough times.

So you feel like my logic is not so bad? Because the other day i over heard a conversation in the barber shop about how stupid people like me are and if you cant put down 20 to 30 percent on a vehicle and pay it off in 3 or 4 years you cant afford it. I did not agree but didnt say anything just listened.

 

[ShadowsPapa]

So you feel like my logic is not so bad? Because the other day i over heard a conversation in the barber shop about how stupid people like me are and if you cant put down 20 to 30 percent on a vehicle and pay it of in 3 or 4 years you cant afford it. I did not agree but didnt say anything just listened.

My oldest son has always been good at using other people's money and has done quite well. He could easily pay cash for things but doesn't.
I used to use the car loans, and other types of loans - but strategies have changed since I retired.
Before, I wanted to put my money away as fast as possible and use credit to buy vehicles. The state matched up to so many dollars if I set aside part of my check each pay period. FREE MONEY. I could have used that money to buy something - but instead I set it aside, they matched it.
I tend to pay cash now but that's because our retirement money is doing ok for our standards and age.
You do what works well for YOU in your personal situation, your personal needs, responsibilities, future plans, etc. Only you know what retirement plans are, how much you need and so on.

 

[NC_Overland]

I really could careless if someone pays 75k for the above truck. This just seems like highway robbery to me.

I also wonder how the financing works when trying to buy a vehicle for almost 10k more than it sold for new?

It depends on how it books out and the credit situation. Banks will do roughly 120% over book value with good credit.

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