When Will Car Prices Come Down?

[Worknman]

I was looking at buying a car for my teenage daughter, but given how high new and used prices are right now I might wait until next year. My budget is $11k and I dont like what Im seeing right now. I thought about giving her our 2017 Camry that I owe 11k on and getting a new one but new prices are ridiculous too.

Do you think prices will come down by next spring/summer in time for graduation?

 

[Tar Wheel]

I was looking at buying a car for my teenage daughter, but given how high new and used prices are right now I might wait until next year. My budget is $11k and I dont like what Im seeing right now. I thought about giving her our 2017 Camry that I owe 11k on and getting a new one but new prices are ridiculous too.

Do you think prices will come down by next spring/summer in time for graduation?

I work in the auto industry. In 25 years, I’ve never seen inventory this depleted. It’s basically been a snowball that turned into an avalanche. Starting with COVID shutting factories down, and now a lack of computer chips (because now, cars are basically computers on wheels) , it’s brought the auto industry to its knees. No new cars means no trade in, and pre-owned is where sales makes it‘s money. In the past, you would never see cars older than 5-6 years old or mileage over 80,000 on the lots. Those cars were sold to wholesalers for mom and pop lots. Now the same cars make up half the inventory on dealership lots.

Prices will not be going down anytime soon. I’m hearing 2023 before there is any semblance of normality returning. If you see something you like, anywhere close to your price range, I suggest you act quickly because inventory will continue to be scarce for the foreseeable future and demand is outpacing supply.

 

[Sweet Home Alabama]

Cash talks

 

[Worknman]

I work in the auto industry. In 25 years, I’ve never seen inventory this depleted. It’s basically been a snowball that turned into an avalanche. Starting with COVID shutting factories down, and now a lack of computer chips (because now, cars are basically computers on wheels) , it’s brought the auto industry to its knees. No new cars means no trade in, and pre-owned is where sales makes it‘s money. In the past, you would never see cars older than 5-6 years old or mileage over 80,000 on the lots. Those cars were sold to wholesalers for mom and pop lots. Now the same cars make up half the inventory on dealership lots.

Prices will not be going down anytime soon. I’m hearing 2023 before there is any semblance of normality returning. If you see something you like, anywhere close to your price range, I suggest you act quickly because inventory will continue to be scarce for the foreseeable future and demand is outpacing supply.

Do you think these big internet companies like Carvana and Vroom are also driving up prices by buying up the wholesale inventory?

I understand the scarcity issue but Im just wondering how much longer consumers will be willing and able to keep up with the high prices before demand starts to fall.

 

[STP]

What Tar Wheel said… Supply and demand, COVID, inflation, chip shortage, and now I see that there is a rubber shortage, which will be the next headwind for the auto industry. It will probably get worse before it gets better. If you see something that you like, you should consider getting it now. It might cost you more in the spring/summer ?

 

[bullet08]

Last few times I got my cars from Ft. Bragg while troops were deployed. It was basically buyer's market. I don't see that happening again any time soon.

 

[Tar Wheel]

Do you think these big internet companies like Carvana and Vroom are also driving up prices by buying up the wholesale inventory?

I think the big guys are looking for more appealing inventory than the wholesale cars I described. Not saying that it can’t come to that.

I understand the scarcity issue but Im just wondering how much longer consumers will be willing and able to keep up with the high prices before demand starts to fall.

It’s not just car prices. Everything has skyrocketed. The demand will always be there and it seems everyone is searching for a car for their 16 year old.

 

[fireground_piper]

The chip issue is impacting many industries. I think Intel is the only one who actually manufactures in the USA, maybe there's 1 other but that's pretty much it. Any product that needs a chip is just getting killed right now.

 

[Servant King]

 

[mso489]

Supply has to catch up with demand, and then go beyond that eventually to a surplus. I think that will take two years at the soonest. Cars have gotten so expensive, new and used, that many young people organize their lives to go carless, using bikes, public transportation, and walking when possible. I didn't own a car until I was 27, living on campuses and hauling all over the world with the Navy. When I finally bought myself a brand new VW bug, it took me a while to make a habit of using it, though I'd been driving since I was 15. I think it's much easier for young people to lead active social lives without a car, much more so than when I was carless.

 

[warren]

Certainly sometime in the next few months. As soon as the supply exceeds the demand the prices will start to return to normal. Prices are already coming into line up here, Alaska.

 

[snagstangl]

Ask around with friends and family if anyone has a vehicle they might get rid of. My last 5 vehicles, all used, I got that way. I also think a first car should be safe, but not super nice, and high mileage is fine, even a little crappy. So if she gets in an accident or hits something its not a huge deal. A first car should have a couple of things held together with zip ties.

 

[irishearl]

Right now where I live you don't see more than half a dozen cars on the car lots, which is troubling as we want to be in the market sometime in the next few months. In my long adult life I've never seen cars so scarce.

 

[KafkaStoleMyBike]

Took my Jeep in for an airbag recall, and they offered me more than what I paid for it 5 years and 50k miles ago. I’ve made some substantial upgrades, but I did agree to look at their lot… took about 3 minutes to peruse their entire inventory.

You might grab a trusty Trader’s magazine- you might luck out and find someone local who’s taken good care of an older model.

 

[rmpeeps]

Wow! I got a plastic printed offer from a local Ford dealership for my 2011 Silverado Z71, for $26k.
It has 195,000 miles on it and they were willing to honor the blind offer.
I bought it for $28k eight years ago.
I’m keeping it.

 

[JOHN72]

Buy this car. This will also be like tobacco tomorrow. They won't come back again...........?

 

[danish]

In a few years you can probably get most used gas cars for close to nothing here in Denmark and in a lot of other countries. The running costs will however be high, compared to modern cars.

 

[kcghost]

I know my Toyota dealer just salivates when I bring in my 2015 RAV4 with 33K miles on it. But he has yet to make me an offer I can't refuse.

 

[cigrmaster]

In all my years of buying cars and also managing car dealerships, I have not seen the market so high. I recently was looking for a mini van as I need it for my wheel chair. I lucked out as a guy from Canada had his winter vehicle stuck here in the US because of covid. Normally I pay 1500-2000 back of clean retail on NADA. I had to pay only 500 back of clean retail. It was a 2006 Dodge Caravan with only 60,000 miles and it was mint. I know the car well having been on the sales floor in 1984 when they first came out. I couldn't get the cash out of my pocket fast enough as I had been looking for months for a deal like this.
I gave my Lexus to my 18 year old daughter as she had just graduated h.s and I gave all the kids cars when they graduated. 3 of them were Lexus. I got great deals on the Lexus's over the years. Always from old ladies with barely any miles. Here in Sarasota, it is normally a gold mine for great deals. Not since covid though.

 

[fightnhampster]

Do you think these big internet companies like Carvana and Vroom are also driving up prices by buying up the wholesale inventory?

I understand the scarcity issue but Im just wondering how much longer consumers will be willing and able to keep up with the high prices before demand starts to fall.

Used car lots also got a lot of inventory from rental companies. In '20 almost all the rental companies got rid of their inventory because nobody was renting cars. Now even rental companies are short of vehicles. As @tarwheel said, it has rippled out to all the car markets