Used car prices

[Spammy]

With new car sales down the proverbial and Covid here for a lot longer that we imagined, what does everyone think about used car prices?

I'm in the market for a used car in the low 20s - my aim is to find a sellers looking for $30k and offer them $23k cash today, take it or leave it.

[Poetic Justice]

This is interesting, I have purchased a few cars off private sellers to sell at our dealership lately and it has been easier than I anticipated at a price considerably lower than they were asking. Obviously there would be a few people looking to offload cars with debts and the like if they have had a change in work circumstances due to COVID.

Dealership used car sales have been going gang busters also... people looking to spend a little less than the new car pricing.

As for private used car sales, maybe not?

[fiestaz]

Originally Posted by Spammy

With new car sales down the proverbial and Covid here for a lot longer that we imagined, what does everyone think about used car prices?

I'm in the market for a used car in the low 20s - my aim is to find a sellers looking for $30k and offer them $23k cash today, take it or leave it.

Oh your one of those buyers....

[Spammy]

Originally Posted by fiestaz

Oh your one of those buyers....

Oh so you are one of those sellers "I know what I have, so no offers"

Well it is my money and they should be happy as I'm probably offering them $5k more than the dealer would as a trade in.

[bangm001]

Iv found anything with a limited build number people are wanting mega bucks! HSV GTOs, anything Senator etc etc. Is the demand really that high for these right now? I guess they are selling though.
I ended up finally buying a 335 FG MKII FPV GT a few months ago and got it for what i thought was a good/fair price.

[Crazy Dazz]

If you hunt high & low long enough, it is often possible to come across genuine bargains in the private market. But you need to be ready to move quickly, because you're not the only one out there hunting for a bargain.

But as for offering well under what they're asking, the problem is that you need to time it right. You don't want to be the first (or even 2nd) person to tell them, because they will resent you. Unfortunately people are not logical.
Seller advertises his car, at too high a price. 10 people come and look, realise he's overpriced it and walk away. You come along and finally tell him the truth. YOU are the one he gets upset at.
You need to come in after others have already softened him up.

As for current prices, I have seen some softening, but not much. We found a good price of a 1yr old ex-fleet Equinox, but the pricing seems to be combination of the model being relatively poorly known, Holden existing Australia, covid related lack of demand, and this dealer wanting to move volume.
The thing with dealers is that they simply adjust to the market. If prices are down they pay less at the auctions and sell them for less. Unlike private owners who will tend to hold on to them.

And sure, there have been a lot of people royally screwed by this damned virus. But IMHO not enough to really drive car prices down substantially.
Especially now. There has presumably been reduced demand, over the past 6 months, but the bargain hunters are now out in force. Would be sellers I think are mostly holding on.

And it depends on what you want. Yes, run of the mill Soccer-Mom cars have moved with the market, but desirable cars seem to be holding up.

[Blue Dog]

Originally Posted by Spammy

With new car sales down the proverbial and Covid here for a lot longer that we imagined, what does everyone think about used car prices?

I'm in the market for a used car in the low 20s - my aim is to find a sellers looking for $30k and offer them $23k cash today, take it or leave it.

I'm sure the sellers will respond appropriately.

[xxx000]

Originally Posted by Spammy

With new car sales down the proverbial and Covid here for a lot longer that we imagined, what does everyone think about used car prices?

I'm in the market for a used car in the low 20s - my aim is to find a sellers looking for $30k and offer them $23k cash today, take it or leave it.

Is this going to be done via text message?

[FlipXW]

Originally Posted by Spammy

With new car sales down the proverbial and Covid here for a lot longer that we imagined, what does everyone think about used car prices?

I'm in the market for a used car in the low 20s - my aim is to find a sellers looking for $30k and offer them $23k cash today, take it or leave it.

I would not so politely tell you where to go. Always get a couple of these types of offers when I sell cars. Never had to budge on my price more than $500 and always sell within a couple of weeks. Who knows someone might entertain it though.
Edit: I know times are tough no need to make it tougher for people and kick them while their down.

[Falcon SXR8]

I had an bloke trying to low ball me by heaps when i was selling my falcon, all the while i had people offering me more money than it was advertised at. If you want to buy a car don't stuff a seller around playing games.

[stock1991]

buyers who just call and say..... "will you take heaps less?"

fu rather give it away free

[fiestaz]

Originally Posted by Spammy

Oh so you are one of those sellers "I know what I have, so no offers"

Well it is my money and they should be happy as I'm probably offering them $5k more than the dealer would as a trade in.

Ahh no... I’m happy to negotiate. But if I were to get an offer like you suggested, the conversation would be over quickly and rudely.

Your $23k budget, means you should be looking at cars around $25k and less. No one in their right mind would drop nearly a third off their asking price just because you said it’s more than a dealer would pay them.

So yes, you are one of those buyers. One that thinks their money is worth so much more than everyone else’s.

Edit: I truly hope you do not go to look at and drive a car to then put in an offer like that, especially in this climate. Atleast give them the opportunity to reject it over the phone before wasting their time.

[FlipXW]

A few years ago I was selling a car for $20000. A bloke messaged me saying will you take 14k to which I simply replied @^*% OFF. He then proceeded to tell me how it’s a piece of sht (why did he want to buy it then) and I’ll never get anywhere near what I’m asking. Anyway a bloke came and looked at it 2 days later and gave me $19600.
Only someone extremely desperate would drop thousands off their asking price unless they’re way overpriced to begin with.

[nstg8a]

Originally Posted by fiestaz

Ahh no... I’m happy to negotiate. But if I were to get an offer like you suggested, the conversation would be over quickly and rudely.

Your $23k budget, means you should be looking at cars around $25k and less. No one in their right mind would drop nearly a third off their asking price just because you said it’s more than a dealer would pay them.

So yes, you are one of those buyers. One that thinks there money is worth so much more than everyone else’s.

Edit: I truly hope you do not go to look at and drive a car to then put in an offer like that, especially in this climate. Atleast give them the opportunity to reject it over the phone before wasting their time.

Plenty of sellers do take low offers like that.

You don’t get if you don’t ask

I’ve never understood why people get offended by a low offer.
You either accept it or don’t. Or continue negotiating.
But if someone acts like I just shagged his mum just because his feelings got hurt over a low offer then I’d probably walk away even if I really liked the car and was prepared to go higher. If they’re that sensitive then the deal is just gonna be a pain.

Plenty of other cars on the market.


Sent from my iPhone using Tapatalk

[Spammy]

Originally Posted by fiestaz

Ahh no... I’m happy to negotiate. But if I were to get an offer like you suggested, the conversation would be over quickly and rudely.

Your $23k budget, means you should be looking at cars around $25k and less. No one in their right mind would drop nearly a third off their asking price just because you said it’s more than a dealer would pay them.

So yes, you are one of those buyers. One that thinks there money is worth so much more than everyone else’s.

Edit: I truly hope you do not go to look at and drive a car to then put in an offer like that, especially in this climate. Atleast give them the opportunity to reject it over the phone before wasting their time.

No sane person pays $23k for a used car advertised at $25k.

[fiestaz]

Originally Posted by Spammy

No sane person pays $23k for a used car advertised at $25k.

Good luck with that.

[GasoLane]

Originally Posted by Spammy

No sane person pays $23k for a used car advertised at $25k.

Playing the devil's advocate here but if you were selling a car for $30k would you take $23K?

[Spammy]

Originally Posted by GasoLane

Playing the devil's advocate here but if you were selling a car for $30k would you take $23K?

Depends on circumstances, years ago I was transferred overseas on short notice and the company was footing all my relocation expenses. I sold my car for way less than it was worth because I really didn't care and I just wanted it gone and I was reimbursed for the lease payout difference.

As someone said before. You don't know unless you ask. I'm not rude when I make offers, I just state upfront that I'm a serious buyer with cash and I can deal right away.

For what it's worth I buy houses the same way and in uncertain economic times buyers are king.

[nstg8a]

My first offer is almost always quite a bit lower than I’m prepared to pay.

The same as a sellers asking price is usually much higher than what they will,actually expect.

I’ve looked at cars that would have been reasonably priced if they were as advertised, but many (way too many) sellers know sweet frick all about cars, and when you look deeper you find faults that can and will take thousands of the cars value.

Territorys are a perfect example.
The owner thinks it’s all good, just needs a ball,joint or a bush in the front end.

Decent look over reveals it needs everything.... ball joints bushes diff bushes etc etc. that territory almost halved in value.

If I look at a 20k car that needs 5k in repairs, then I’m gonna want it for less than 15k or I might as well just buy one for 20k with the work already done and save myself the runaround.

[UTXR8]

Originally Posted by Spammy

Oh so you are one of those sellers "I know what I have, so no offers"

Well it is my money and they should be happy as I'm probably offering them $5k more than the dealer would as a trade in.

lowballing is completely different to 'no offers'....

[oldel]

Originally Posted by nstg8a

My first offer is almost always quite a bit lower than I’m prepared to pay.

The same as a sellers asking price is usually much higher than what they will,actually expect.

That's fair but to say you have (way less) cash, take it or leave it is just trying it on and probably wasting the sellers time. They will feel that the buyer thinks they're desperate, when it's the buyer that's desperate (to take advantage and get a bargain).

Negotiation is expected and if neither party feels that way then it's in bad faith so just move on. "Doesn't hurt to ask" is said by the same people that get annoyed when they realise they are not considered a serious buyer so their chances are 'hurt'.

Easier to try such a thing with housing due to larger costs that are ongoing, but it's not the same with a car. Hopefully the car in a private sale is not under finance and it's not like they're paying a mortgage they can't afford, rates are due, they are moving for work, going overseas etc. Not much chance of a desperate cars sale due to that these days!
It's the opposite, people are staying put, might be secure with jobkeeper, double dole or in what worked out to be a safe industry and they aren;t desperate to sell.

[Big_Daz]

Originally Posted by nstg8a

Plenty of sellers do take low offers like that.

You don’t get if you don’t ask

I’ve never understood why people get offended by a low offer.
You either accept it or don’t. Or continue negotiating.
But if someone acts like I just shagged his mum just because his feelings got hurt over a low offer then I’d probably walk away even if I really liked the car and was prepared to go higher. If they’re that sensitive then the deal is just gonna be a pain.

Plenty of other cars on the market.


Sent from my iPhone using Tapatalk

I've dealt with a few of these type when selling cars.. Had a bloke message me offering $19k on a car I had advertised for $30k (had Wifey's new car on order at the time and had been offered $26k trade in for context). I had a good laugh, told him thanks but no thanks and moved on... If a complete stranger wants to offer you insanely lowball money for your car its not a big deal... Just move on... People can get so touchy these days....

[anobserver]

Originally Posted by nstg8a

My first offer is almost always quite a bit lower than I’m prepared to pay.

The same as a sellers asking price is usually much higher than what they will,actually expect.

I’ve looked at cars that would have been reasonably priced if they were as advertised, but many (way too many) sellers know sweet frick all about cars, and when you look deeper you find faults that can and will take thousands of the cars value.

Territorys are a perfect example.
The owner thinks it’s all good, just needs a ball,joint or a bush in the front end.

Decent look over reveals it needs everything.... ball joints bushes diff bushes etc etc. that territory almost halved in value.

If I look at a 20k car that needs 5k in repairs, then I’m gonna want it for less than 15k or I might as well just buy one for 20k with the work already done and save myself the runaround.

If the car is reasonably priced BEFORE essential repairs, and the seller wont budge on price, theyre being unreasonable and clearly dont want to sell yet.

Case in point, many years back looking at an xh ute needing brakework. An offer of the sellers price less estimated cost of work (by a mechanic) was flatly refused, so i walked.

Imho, the op is being ambitious, and if the car is newly listed, has buckleys chance.

[Polyal]

Originally Posted by FlipXW

Only someone extremely desperate would drop thousands off their asking price unless they’re way overpriced to begin with.

To be fair to the OP, we are in desperate times and its only going to get worse.

The market is bizarre at the moment, so hold out for a couple of months once the economy tanks another 5-10%.

Ive been keeping an eye out for a 370Z, advertised at $20-23k and one at $19k that I offered $15k for and he is getting back to me tomorrow.

The difference is you need to be quick and you need to genuine.

I have never, ever, paid the advertising price. Typically at least 10% off, because if people are suggesting some dont add a little buffer so they have wriggle room then I suggest you are lying.

Depends on the car, some are advertised sharply others at the moment are dreaming. So many AU XR8's for $15k> when at the start of the year they would struggle to get $10k.

Once the Gov hand outs start to be pulled back then watch, this is the only reason things are not worse right now. There are always cycles of power over time (buyer vs seller) and we havent really gone through a period of economic instability before.

So before everyone jumps on the OP he was looking at discussing the current (unique) situation, not your morale compass on selling cars. Which by the way, is loose as buggery, its business.

[anobserver]

Originally Posted by Polyal

To be fair to the OP, we are in desperate times and its only going to get worse.

The market is bizarre at the moment, so hold out for a couple of months once the economy tanks another 5-10%.....

......Once the Gov hand outs start to be pulled back then watch, this is the only reason things are not worse right now. There are always cycles of power over time (buyer vs seller) and we havent really gone through a period of economic instability before....

I agree that we're in for tough times. What i've yet to see is people's mindsets change to match.

When that awful reality finally sets in there well might be more sellers than there are now. When people are forced to list their ppor and sell stuff like cars to make ends meet. We are nowhere near that yet. Here is what it might look like...

https://www.cnbc.com/2020/07/08/32-p...-payments.html

At that point I suspect the buyers might well disappear bar all but the most liquid.

[au2000]

As a seller tbh id rather get my low ball offers over the phone than have to physically waste my time pretending to be willing at my price then low ball me in person.
At the end of the day its a offer.. can say no thanks after all

[Polyal]

Originally Posted by au2000

As a seller tbh id rather get my low ball offers over the phone than have to physically waste my time pretending to be willing at my price then low ball me in person.
At the end of the day its a offer.. can say no thanks after all

Exactly. If its 50% down then thats one thing, but is there justification?

Hard to make a general observation for all sales but at the end of the day its just a question, your tone and how you approach it is key.

[GT0132]

Originally Posted by Spammy

With new car sales down the proverbial and Covid here for a lot longer that we imagined, what does everyone think about used car prices?

I'm in the market for a used car in the low 20s - my aim is to find a sellers looking for $30k and offer them $23k cash today, take it or leave it.

Good luck with that...

[Dr Smith]

Originally Posted by Spammy

With new car sales down the proverbial and Covid here for a lot longer that we imagined, what does everyone think about used car prices?

I'm in the market for a used car in the low 20s - my aim is to find a sellers looking for $30k and offer them $23k cash today, take it or leave it.

You might be failing to realise that a seller listing at $30K may actually be pricing their car exactly where the "real market" is positioned and not overpricing with some margin to negotiate $7K...And they may not be financially desperate.

I was offered a dealer $25-$28K trade-in on one of my 2.5 yo vehicles on a $47K brand new purchase.
Researching shows me second hand retail pricing is about $30K maybe $33K at best.
If I choose to sell privately I'm going to list at $30K and negotiate down to maybe $28K...if you say rang me and offered $23K cash I'd say good luck and call me when you're seriously interested in paying a fair price for an immaculate condition vehicle with less that 32Km. YMMV.

[Smoke Pursuit]

Lol you are a long way away from the goal post. Most people will negotiate 2 - 3k. Unless they have overpriced it to start with they still wont drop that sort of value.

Used cars are pretty hot at the moment, dealer stock is low due to Covid (a lot of dealers didn't buy during the first wave of covid and depleted their wholesale / used stock to low numbers). Also alot of people cashed their supers in and bought cars (believe it or not).

I had a car I was selling for 48k and sold it to a dealer for 44k last week. Not much margin in it for them and it was easier for me to move it on then deal with the current unknown, they contacted me off car sales.

If you have a look at collectable / specialized cars thee numbers have fallen dramatically which has pushed the prices up. I'm not sure why people are not selling their collectable cars at present? Anything with a Holden badge is sky high at the moment!