Used cars...expensive?

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Discussion

dvs_dave

Original Poster:

9,040 posts

232 months

Thursday 26th May 2011
quotequote all
Is it just me or are used cars here in the states a fair bit more expensive than in the UK? Looking around various dealers and online, anything half decent (i.e. European or one of the very few desirable domestics) seems to cost way more than it would in the uk unless it's on 100k+ miles and knackered.


so called

9,130 posts

216 months

Thursday 26th May 2011
quotequote all
Thats what I heard.
Its oposite to what I expected with new car prices being so low.

GavinPearson

5,715 posts

258 months

Thursday 26th May 2011
quotequote all
Your observation is correct.

Often, the best deal can be had from leasing - taking advantage of a manufacturer's deal to reduce inventory.

Now you have looked at secondhand prices, look in the back of the newspaper at the leasing deals and do the maths.

belleair302

6,921 posts

214 months

Thursday 26th May 2011
quotequote all
The ca$h for clunkers in 09/10 took a lot of cars off of the road, the current leasing deals are pretty good and many US drivers are now keeping their cars if bought outright longer. The second hand market is somewhat weak unless you are prepared to spend more....and then there are deals to be had. Anything under $20,000 and the selection is not good.

Deva Link

26,934 posts

252 months

Thursday 26th May 2011
quotequote all
so called said:
Its oposite to what I expected with new car prices being so low.
I've never understood it either - you can lease so cheaply in the US so I have no idea what holds used prices up. Although I gather that the cheap lease deals are only available to those with the best credit ratings.

The UK seems to have about the lowest used car prices in the world - I've had colleagues from Germany and Nordic countries comment on it when they've been over here. Maybe there are far more new cars sold in the UK per head of population than in other places?

Dr JonboyG

2,561 posts

246 months

Thursday 26th May 2011
quotequote all
belleair302 said:
The ca$h for clunkers in 09/10 took a lot of cars off of the road, the current leasing deals are pretty good and many US drivers are now keeping their cars if bought outright longer. The second hand market is somewhat weak unless you are prepared to spend more....and then there are deals to be had. Anything under $20,000 and the selection is not good.
It's not just cash for clunkers though. Used car prices were high relative to the UK even when I moved here in 2002.

unrepentant

21,671 posts

263 months

Thursday 26th May 2011
quotequote all
Deva Link said:
I've never understood it either - you can lease so cheaply in the US so I have no idea what holds used prices up. Although I gather that the cheap lease deals are only available to those with the best credit ratings.
Leasing isn't that cheap, especially for quality vehicles. The headline leases you see advertised are almost always on base cars (that nobody wants), are for 10,000 miles a year (which is not enough for most Americans) and require $000's down. Also, you cannot lease pre owned cars.

Deva Link

26,934 posts

252 months

Thursday 26th May 2011
quotequote all
unrepentant said:
Leasing isn't that cheap, especially for quality vehicles. The headline leases you see advertised are almost always on base cars (that nobody wants), are for 10,000 miles a year (which is not enough for most Americans) and require $000's down. Also, you cannot lease pre owned cars.
I think most people in the UK would think these rates are fairly astonishing (and click on the 2011 tab too): http://www.bmwusa.com/Standard/Content/FinancialSe...

I was in Florida last year and a dealer was advertising 3 Series for $299/mth, and bear in mind the US entry level is 6cyl / 3 litre - none of your crappy 318i's there!

GavinPearson

5,715 posts

258 months

Friday 27th May 2011
quotequote all
unrepentant said:
Leasing isn't that cheap, especially for quality vehicles. The headline leases you see advertised are almost always on base cars (that nobody wants), are for 10,000 miles a year (which is not enough for most Americans) and require $000's down. Also, you cannot lease pre owned cars.
Leasing rates tend to be best on middle of the road mass market cars because the average secondhand buyer has zero interest in a poverty spec car.

In my experience anybody leasing cars will do a 'zero down' option which ends up in the $200-$500 region at time of signing, provided you have a credit score high enough. The OP's wife should have a fairly high score.

I like leasing. If you have a good car you keep it. If you have a bad one or find a good deal on another new one you get a new one.

bridgdav

4,805 posts

255 months

Friday 27th May 2011
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I have been here for 3 months.. Cannot Buy or Lease a car without credit history. Trying to buy an older model with minimum miles is so expensive. Carmax ans others want too much IMO for base models with high miles.

It is a merry-go-round that hasn't let me get on yet.

Any advice..?

Cary - North Carolina

unrepentant

21,671 posts

263 months

Friday 27th May 2011
quotequote all
Deva Link said:
I was in Florida last year and a dealer was advertising 3 Series for $299/mth, and bear in mind the US entry level is 6cyl / 3 litre - none of your crappy 318i's there!
Yeah but it will have been poverty spec, 10k per year and $4k down.

unrepentant

21,671 posts

263 months

Friday 27th May 2011
quotequote all
GavinPearson said:
In my experience anybody leasing cars will do a 'zero down' option which ends up in the $200-$500 region at time of signing, provided you have a credit score high enough. The OP's wife should have a fairly high score.

I like leasing. If you have a good car you keep it. If you have a bad one or find a good deal on another new one you get a new one.
Zero down means first payment and doc. Doc fee is minimum $200, what kind of car can you lease for $300 per month with nothing down? Nothing I would want to drive.

PoleDriver

28,805 posts

201 months

Friday 27th May 2011
quotequote all
I've looked at this a few times (UK car prices v rest of world). It does appear that we get ripped-off in a big way when buying new but they depreciate very rapidly the moment you drive them off the forecourt????

unrepentant

21,671 posts

263 months

Friday 27th May 2011
quotequote all
bridgdav said:
I have been here for 3 months.. Cannot Buy or Lease a car without credit history. Trying to buy an older model with minimum miles is so expensive. Carmax ans others want too much IMO for base models with high miles.

It is a merry-go-round that hasn't let me get on yet.

Any advice..?

Cary - North Carolina
You're going to struggle. Until you have filed a tax return you're a ghost and even then credit takes a while to build. The banks look only at credit rating. Carmax is a good place to sell your car, they overpay IMO possibly because they may not do a lot of the reconditioning work that some other dealers do before retailing cars. Best time to buy any car from a big dealer is the end of the month, they are usually very keen to hit targets, maximise commissions etc.. Walk in on the last day of the month ready to buy and they will work very hard to win your business. It won't help your credit sit but it will help to get you best value.

unrepentant

21,671 posts

263 months

Friday 27th May 2011
quotequote all
PoleDriver said:
I've looked at this a few times (UK car prices v rest of world). It does appear that we get ripped-off in a big way when buying new but they depreciate very rapidly the moment you drive them off the forecourt????
Don't forget all US prices, including monthly lease costs that are quoted, are plus tax. Add an ave of 7%.

Deva Link

26,934 posts

252 months

Friday 27th May 2011
quotequote all
unrepentant said:
Deva Link said:
I was in Florida last year and a dealer was advertising 3 Series for $299/mth, and bear in mind the US entry level is 6cyl / 3 litre - none of your crappy 318i's there!
Yeah but it will have been poverty spec, 10k per year and $4k down.
It's still half the price it would be a properly base 3 Series in the UK, and that would be a 4cyl manual, not a 6cyl auto.

Dr JonboyG

2,561 posts

246 months

Friday 27th May 2011
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According to Autoblog used car prices are at a 16-year high: http://www.autoblog.com/2011/05/27/used-car-prices...

Matt Harper

6,770 posts

208 months

Friday 27th May 2011
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I arrived here in 2001 and immediately thought used prices were ridiculous, compared to UK - but some cars just depreciate like crazy in the first year or two and then seem to level off.
Case in point, I bought my 300C, that with it's options cost around $50k new in 2007, for $23k a year later. Talking to my Dodge dealer about a 392 Challenger at the moment - he's offereing me $26k for mine. So, I'm thinking that in the last three years, it's pretty much stopped depreciating.
My daughter bought this yesterday:



2007 Eclipse GT Spyder - around $28k when new - she paid $17k and change. Prior to seeing this one, she looked at a 2006 4 cyl Spyder in silver for sale at $16.5k

dvs_dave

Original Poster:

9,040 posts

232 months

Friday 27th May 2011
quotequote all
So what keeps used values so high and the glacial rates of depreciation? It just doesn't make any sense from a supply and demand perspective?

Given the comparativley cheap pcp/lease plans available on new cars....why would a used car be worth anything when new ones are so cheap?

Matt Harper

6,770 posts

208 months

Saturday 28th May 2011
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What makes you say new cars are 'so cheap' Dave?