Now is the time to sell your used car according to Goldman Sachs

[turkeydance]

quote:

So here it is, for readers who are on the fence about selling their used car.

Now could be the best time ever, and the window is closing. Hatzius explains: "Based on a statistical model that incorporates our auto inventory and sales forecasts as well as lagged price growth,
we estimate that used car prices will retrace almost 35% of their increase since the start of the pandemic by end-2021 and over 70% by end-2022, with tight inventories preventing faster normalization."

 

[Ikarus1]

Problem is the same as real estate...sure the sellers market is awesome...unless you need to replace it. Hyperinflation is real and it's coming

 

[BatteryOaksBilly]

Ronnie Sue bought a new F-150 in December of 2020. She sold it last Saturday for a $5,000 profit.

Problem is the same as real estate...sure the sellers market is awesome...unless you need to replace it.

AND as my Pard @Ikarus1 points out^^^^ she then bought a 2021 King Ranch Explorer........................for sticker.........................NO discount.

The bright side is.....I guess.....also, no added over sticker "premium".

 

[The War Wagon]

And do what, thereafter? Ride a horse?

New car lots around here are more than half-empty. NO microchips for the news ones, so trading up to whatever remains, will cost more than fixing what you HAVE.

 

[Cowboy]

My brother in-law sold his 2018 F-450 for 65k then bought an early 00's Ford Excursion V-10. He had the brakes rebuilt and put new tires on it paying 20k. I just don't think I could do it.

 

[Jeppo]

Ronnie Sue bought a new F-150 in December of 2020. She sold it last Saturday for a $5,000 profit.

AND as my Pard @Ikarus1 points out^^^^ she then bought a 2021 King Ranch Explorer........................for sticker.........................NO discount.

The bright side is.....I guess.....also, no added over sticker "premium".

I drove a Durango Thursday. Back at the dealership, I asked the “how much”. The young gentleman explained they were doing me a favor by including the factory rebates. Their offer was sticker, less rebates, plus all the taxes and crap fees.

He asked what I thought. I thought he should and could do better. I suggested he offer me a price which would transfer the vehicle out of their inventory in the coming few minutes. I’m sure somebody will pay that price but the vehicle is still on the lot tonight, according to their website.

 

[tod0987]

What most don't realize is the shortage of vehicles is driven by the extreme shortage of electronic microchips from china. Ford, GM, FCAP, have thousands, thousands of vehicles that are built but lack these chips in order to be sold and are stored in yards. They've stuffed them everywhere. Last week GM announced they're shuttering several vehicle lines due to the lack of these chips and places to store vehicles. When these chinese chip makers eventually do ramp back up, there will be a huge title wave of vehicles and prices will plunge to stupid cheap IMO. Right now Toyota has been least impacted compared to others, but is still feeling the covid strain. There haven't been any new chip startups that I've read about given that once this covid situation settles down it will be back to normal. No one wants to retool or build new for a relatively short term issue.

 

[hp468]

What most don't realize is the shortage of vehicles is driven by the extreme shortage of electronic microchips from china. Ford, GM, FCAP, have thousands, thousands of vehicles that are built but lack these chips in order to be sold and are stored in yards. They've stuffed them everywhere. Last week GM announced they're shuttering several vehicle lines due to the lack of these chips and places to store vehicles. When these chinese chip makers eventually do ramp back up, there will be a huge title wave of vehicles and prices will plunge to stupid cheap IMO. Right now Toyota has been least impacted compared to others, but is still feeling the covid strain. There haven't been any new chip startups that I've read about given that once this covid situation settles down it will be back to normal. No one wants to retool or build new for a relatively short term issue.

I'm seriously considering selling mine and buying something again once the prices drop.

Stockpile of Unfinished Ford Super Duty Pickups Missing Chips Is Now Visible from Space

Notice how new trucks are getting harder and harder to find? Well, here's why.

www.thedrive.com

All just sitting out there waiting for parts.

 

[1858 Remington]

When these chinese chip makers eventually do ramp back up, there will be a huge title wave of vehicles and prices will plunge to stupid cheap IMO. .

Works for me. I can wait if it'll save me a lot of money.

 

[BatteryOaksBilly]

All just sitting out there waiting for parts.

The Ford Dealers here have been told to accept 100s of new trucks for storage..arrival imminent.
These trucks are only missing the chips that control Driver Safety.. Lane changing, cruise monitoring and such. So say the dealers. The local Dodge Dealer is Ordering and selling Ram trucks every day without all the do-dads. He say he can get all he wants but that most folks are demanding all the do-dads....
Here's where I wonder what's going on.....They say they have a chip problem...no can deliver.....Ford Just introduced The King Ranch Explorer...We bought one a week ago with Every Option Ford offers on that vehicle............Where did the "chips" come from for That vehicle???

 

[Jeppo]

The Ford Dealers here have been told to accept 100s of new trucks for storage..arrival imminent.
These trucks are only missing the chips that control Driver Safety.. Lane changing, cruise monitoring and such. So say the dealers. The local Dodge Dealer is Ordering and selling Ram trucks every day without all the do-dads. He say he can get all he wants but that most folks are demanding all the do-dads....
Here's where I wonder what's going on.....They say they have a chip problem...no can deliver.....Ford Just introduced The King Ranch Explorer...We bought one a week ago with Every Option Ford offers on that vehicle............Where did the "chips" come from for That vehicle???

Certainly they’re allocating whatever chips they can get to the highest margin vehicles. Heck, even I would do that. 🤓

 

[hp468]

Where did the "chips" come from for That vehicle???

Hard to say, the link I posted referenced super dutys. Could be that the infotainment/computers in the explorers are of a different variety with a completly different country of origin.

Wish I knew the answer. We have a couple radio related projects tied up due to lack of availability of similar components.

 

[BatteryOaksBilly]

Certainly they’re allocating whatever chips they can get to the highest margin vehicles. Heck, even I would do that. 🤓

Kinda like Rolex??? make the Gold ones first!!!

 

[Jeppo]

They say they have a chip problem...no can deliver.....Ford Just introduced The King Ranch Explorer...We bought one a week ago with Every Option Ford offers on that vehicle............Where did the "chips" come from for That vehicle???

I read they found a supply sourced from the NSA. I wonder where your GPS history goes. 🤪

 

[Jeppo]

Kinda like Rolex??? make the Gold ones first!!!

That’s small time. Platinum first.

 

[Jeppo]

@BatteryOaksBilly

Ford Replenishes Chip Supply, Finishes Thousands of F-150 Pickups

F-series trucks had been piling up in parking lots awaiting semiconductor chips, but Ford now has a fresh supply and will be able to get the pickups to dealers.

www.caranddriver.com

Report: Ford Might Ask Dealers to Install Chips in Unfinished Cars

Ford has been building vehicles without the semiconductor chips, but lots are filling up and the company is now reportedly considering sending unfinished vehicles to dealers.

www.caranddriver.com

 

[Geezer]

My nephew has a nice, low mileage 2010 Toyota Tundra. He is wanting a new truck, not sure which maker, and he's having trouble finding one. He has priced me his Tundra and I'll buy it. I can sell my old Ranger for a handsome profit. I could sell it now and we could get by with one vehicle until he finds his new truck. But, it may be a long time until he finds his truck. By then, my Ranger profit might not be nearly as handsome.

 

[BatteryOaksBilly]

I can sell my old Ranger for a handsome profit.

A true Net profit can sometimes be deceiving........

 

[BlackGun]

Hold off on a new purchase. A train wreck for American car manufacturers is coming. And remember new vehicles are almost two years old now with no miles making them older models of less value when this ends. 2020 vehicles are still sitting at factory yards without discounts. A service writer told me dealers will have to accept those in their orders with 2021 models.

 

[Frack N Cylons]

So could I trade my Alero for a case of 556 instead of a case of 9?

 

[Crazy Carl]

Just saw a '14 Chevy Silverado 1500 LT, crew cab short bed, 2wd with 125K listed for $26K. I "only" paid $19K for my '13 4wd LT, loaded with leather, Bose & HD towing & cooling package & 97K in Feb.

5+ year old diesels with 100K+ on 'em are listed for $50K - $65K. WTF?