New Vehicle Rip-Offs

[Smokey]

Originally Posted by Stinky Buffalo

I hear ya... Plus the new Tundras have a bit too much estrogen in the styling now...
I hear that they have the wastegate issue solved now, but that scared a lot of potential buyers off too.



I still can't wrap my head around dropping that kind of money on a truck. Definitely wouldn't be taking it out on the back roads, hunting...



That's what I've been hearing too; speaking with some dealers, they are cautiously starting to buy used cars again, since the supply is opening up (they get a lot of used vehicles from the rental market, which was pretty much dead for a while).

Well financing is going to be an issue for both dealers and buyers. If one can find the right ride and has cash they might find something down the road.

I went into a dealer in West End Edmonton on a busy road last week, thry had like no new cars, maybe 10 used and only one salesman on the floor. I was looking for a commuter car cause well I don't need a truck and Jeep and I had to wait weeks till one would come in to look at.

Very Interesting.

[Stinky Buffalo]

Originally Posted by Smokey

Well financing is going to be an issue for both dealers and buyers. If one can find the right ride and has cash they might find something down the road.

I went into a dealer in West End Edmonton on a busy road last week, thry had like no new cars, maybe 10 used and only one salesman on the floor. I was looking for a commuter car cause well I don't need a truck and Jeep and I had to wait weeks till one would come in to look at.

Very Interesting.

For sure, the key is, how long can a person afford to wait.

We're in the market for a new-ish SUV and we're seeing more options becoming available. It's a trickle. Thankfully we're not in a rush, though.

What surprises me is that people seem more willing to drop insane amounts on a new vehicle, instead of buying something used that is more fit-for-purpose that is a fraction of the cost. Those "easy payments" won't be so easy for long the way this economy is going.

[midgetwaiter]

Originally Posted by Stinky Buffalo

What surprises me is that people seem more willing to drop insane amounts on a new vehicle, instead of buying something used that is more fit-for-purpose that is a fraction of the cost. Those "easy payments" won't be so easy for long the way this economy is going.

The used car market is still insane, you need to specify the fraction you think you’re gonna pay. I bought a Chev Colorado ZR2 Bison last year for 60k, financed it at 0.9%. If I wanted to buy a used one it would cost nearly as much if not more.

Here’s a 2020 ZR2 for 57k. It has low km but is missing the Bison package which is worth 7k. https://www.autotrader.ca/a/chevrole...200X6&sprx=100

60 months on my new truck at .9% is $61,451.75 when it’s paid for. A year ago you’d probably get about 5% on a used vehicle so that’s going to put us at $64,910.91 for the used one without the AEV off road goodies.

Let’s look at a 4 year old one instead, stupid lights and ugly wheels, doesn't have the Bison stuff and has 127k on it for $43,995. 60m at 5% and you’re paying $50,105.37.

https://www.autotrader.ca/a/chevrole...200X6&sprx=100

So you tell me why I didn’t decide to pay $3500 more for a 2 year old truck or 80% of the new price for a 4 year old one with 127k km on it and no warranty? I agree that the price of new vehicles is getting crazy and causing a lot of people to over extend but I don’t think you can ignore the influence of used prices on those decisions.

[tirebob]

Originally Posted by midgetwaiter

The used car market is still insane, you need to specify the fraction you think you’re gonna pay. I bought a Chev Colorado ZR2 Bison last year for 60k, financed it at 0.9%. If I wanted to buy a used one it would cost nearly as much if not more.

Here’s a 2020 ZR2 for 57k. It has low km but is missing the Bison package which is worth 7k. https://www.autotrader.ca/a/chevrole...200X6&sprx=100

60 months on my new truck at .9% is $61,451.75 when it’s paid for. A year ago you’d probably get about 5% on a used vehicle so that’s going to put us at $64,910.91 for the used one without the AEV off road goodies.

Let’s look at a 4 year old one instead, stupid lights and ugly wheels, doesn't have the Bison stuff and has 127k on it for $43,995. 60m at 5% and you’re paying $50,105.37.

https://www.autotrader.ca/a/chevrole...200X6&sprx=100

So you tell me why I didn’t decide to pay $3500 more for a 2 year old truck or 80% of the new price for a 4 year old one with 127k km on it and no warranty? I agree that the price of new vehicles is getting crazy and causing a lot of people to over extend but I don’t think you can ignore the influence of used prices on those decisions.

It's crazy what they are doing! Just earlier this summer my business partner picked up a GM 1500 AT4. Just casually while getting ready to sign all the papers he mentioned we had an old shop truck we would probably sell. They asked what it was so he said exactly, a 2014 base model 2wd F150 single cab regular box with the base 6 cylinder NA motor and no options other than air conditioning. Not even electric locks or mirrors or nothing. Complete work truck special. Said it had around 120,000km on it and that it had smoked a deer and been fixed. The box is all scratched up and the interior is dirty and stained as a shop run-around truck often gets. The offered 15K right on the spot sight unseen...

He handed them the keys that very moment... A week later it was on their lot for 21K. Not a word of a joke I paid 19K for that truck brand new in 2014.

[M.C. Gusto]

Im never buying a new truck. Ill just keep fixing mine. thicker body, better paint, no chips or sensor issues. Tougher.
Im floored at the price of thee trucks now and it would absolutely drive me nuts to buy a new truck that has orange peel. Next time your in a dealership (doesnt matter the maker) have a look at the paint, they all have orange peel and everyone seems to accept that now.

[Stinky Buffalo]

I see what you mean, midgetwaiter. And you're right, in that scenario, it does make sense in buying new. But we are talking about different points of view here.

What I'm talking about (and the reason I said "fit-for-purpose") was that there are vehicles that would do the same job as the new one some are purchasing. No, the vehicle won't be as shiny, it may not have a warranty. It may not have the same bells and whistles. But in some cases, a person could buy these without financing to suit their needs.

My son picked up a nice used truck for less than 1/5 the cost of a new one. It suited his needs and he didn't overextend himself financially.

What I'm trying to wrap my head around is, for many people, they can't guarantee that they are going to have the cash flow to keep up the financial commitment on a 90K truck over the finance period. Employment is volatile, and the cost of living is putting many people under financial stress that they may not be prepared to handle. I made that mistake once. I paid for it and have learned.

Oh, I only financed one more vehicle after that, and that was because it was at 0% and I was able to cover the balance over the term in case there were any issues. I also bought a base model (OK, I added A/C!). But it fit my purpose and budget.

That's where I'm coming from.

[midgetwaiter]

Originally Posted by Stinky Buffalo

I see what you mean, midgetwaiter. And you're right, in that scenario, it does make sense in buying new. But we are talking about different points of view here.

What I'm talking about (and the reason I said "fit-for-purpose") was that there are vehicles that would do the same job as the new one some are purchasing. No, the vehicle won't be as shiny, it may not have a warranty. It may not have the same bells and whistles. But in some cases, a person could buy these without financing to suit their needs.
.

I could have paid cash for that truck, it just didn’t make sense to when I can use it elsewhere. Debt, even against a depreciating asset is not always a bad thing, depends on the wider context.

[Stinky Buffalo]

Originally Posted by midgetwaiter

I could have paid cash for that truck, it just didn’t make sense to when I can use it elsewhere. Debt, even against a depreciating asset is not always a bad thing, depends on the wider context.

Absolutely, context is everything! Makes sense to put savings to work when the interest on the debt is fixed at nil (or close to nil, as in your case).