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Why are used cars so expensive right now ?

Armadilo

Armadilo

Banned
Oct 27, 2017
9,877
I'm looking at California Craigslist and websites for used cars with a budget of $4k and everything is salvage or out of my budget with crazy miles on it, Is this just the worst time of the year to look for used cars ?

I understand that when it comes to car shopping, it's never that easy but it seems like at this point I don't know if I should just give up even though I need a car.
 
Cation

Cation

The Fallen
Oct 28, 2017
3,603
Short answer: Covid

Long answer: new cars are being produced in smaller numbers due to covid restrictions & car chips are limited as well
 
TaySan

TaySan

SayTan
Member
Dec 10, 2018
33,442
Tulsa, Oklahoma
I was in the same position as you a couple years ago and I couldn't find anything decent at $5K. It's too low of a budget for used now.
 
Dali

Dali

Member
Oct 27, 2017
6,184
My brother said his friend sold a 4 year old luxury car for more than it was purchased for new. His explanation was interest rates were so low dealerships weren't getting paid what they expected, so they upped the base price to account for the difference. If this is true then I can see private sellers looking online and seeing inflated prices for their cars and thinking that's the going rate now.
 
Dreamwriter

Dreamwriter

Member
Oct 27, 2017
7,461
I have a 2016 Miata at "Very good quality", its Kelly Blue Book value is listed as around $20,000 sold to a private party; it cost me $27,000 when I bought it 5 years ago. So yeah, it definitely seems that used car prices are higher than a person would expect.
 
OP
OP
Armadilo

Armadilo

Banned
Oct 27, 2017
9,877
TaySan said:
I was in the same position as you a couple years ago and I couldn't find anything decent at $5K. It's too low of a budget for used now.
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What did you decide to do?

If I didn't care too much I'd put my money toward a down payment and get a new car but the problem is that I rather not because I just need a basic car for school and work and not be in debt.

seems like the good used cars start around $8k
 
THEVOID

THEVOID

Prophet of Regret
Member
Oct 27, 2017
23,827
I bought a used Honda CRV 5 years ago for 12K and was surprised the current blue book is 9K. Not much of a loss in 5 years.
 
Sectorseven

Sectorseven

Member
Oct 25, 2017
6,560
You should be able to get an early 00s Toyota Corolla for under $5K still. If it was taken care of, it will still be reliable.
 

Deleted member 1086

User requested account closure
Banned
Oct 25, 2017
14,796
Boise Area, Idaho
I'm getting mailers from local Ford dealerships that want to buy my 2015 Mustang GT, my dad has gotten some for his Ranger pick up too. They are hurting for used cars to sell.
 
TaySan

TaySan

SayTan
Member
Dec 10, 2018
33,442
Tulsa, Oklahoma
Armadilo said:
What did you decide to do?

If I didn't care too much I'd put my money toward a down payment and get a new car but the problem is that I rather not because I just need a basic car for school and work and not be in debt.

seems like the good used cars start around $8k
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I found a 2014 Ford Fiesta hatchback 93k miles for 7.5k. It was the best thing I could find that was relatively recent.
 
TheKeipatzy

TheKeipatzy

Member
Oct 30, 2017
3,286
California for now
Shortage of new cars trickles down to shortage of used cars and even some difficulty in parts.

It's a pain in the butt I swear I come to the realization with some of my car so I'm going to have to wait another week to get some parts that are rather basic!
 
sfedai0

sfedai0

Member
Oct 27, 2017
10,789
Your budget would have been too small a decade ago. Well, for a reliable car. IMO, with your budget, its basically a late '90s civic or corolla. If you can save up closer to 10k, you can snag a Prius easy.
 

Deleted member 8118

User requested account closure
Banned
Oct 26, 2017
3,639
There is nothing wrong with a rebuilt title at all (I'm assuming you mean rebuilt. Salvage title cars are a bit different). Just go through the CarFax and make sure the car has a PPI (Pre-Purchase Inspection). Also, if you're looking at an older car, them having a rebuilt title is going to be very common.

I honestly don't know what you expect to get with $4k - it's not going to be anything of luxury. Bump your budget up and you'd be able to get something nicer, but even then, I'd avoid anything fancy because it would likely cost you a lot in undone maintenance. Quell your standards and just get something cheap and simple.
 
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turbobrick

turbobrick

Member
Oct 25, 2017
13,716
Phoenix, AZ
Everything is expensive right now. That includes used cars, more so if you want an enthusiast car.

I'll sell you my 1998 Volvo, OP. For $3500 its yours, and for that price I'll even fix what's wrong with it beforehand.
 
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Clay

Clay

Member
Oct 29, 2017
8,624
Armadilo said:
I suppose I can probably be patient and wait it out, school starts in the fall so I have some time to think about stuff and perhaps things will change when things start to get back to normal.
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I don't mean to be a bummer but 4 grand is still a pretty low budget even without the current COVID-related supply issues. Your options are still going to be limited.
 
Pororoka

Pororoka

Member
Nov 1, 2017
1,210
MX
Is like that everywhere. We wanted a used small city car and today they are damn expensive than what they used to be 4 years ago. It doesn't help that also gas is going up.

The Dodge (Hyundai) Atos was around $1000 then and now they are around $2500 - $3500 in good shape. Same with the Pontiac/Chevrolet Matiz, the Chevrolet "Chevy", the Ford Ka or those microvans that FAW used to sell. All of those had a spike in price recently.

Our only sensible option is to get the 2001 Ford Fiesta with timming problems that belongs to my mother in law and hope that it doesn't have more serious problems.
 
turbobrick

turbobrick

Member
Oct 25, 2017
13,716
Phoenix, AZ
Clay said:
I don't mean to be a bummer but 4 grand is still a pretty low budget even without the current COVID-related supply issues. Your options are still going to be limited.
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I wouldn't say its a low budget, but you're going to have to search if you want something that's not old or high mileage. OP mentioned California, and assuming LA, there's some decent cars there on Craigslist right now, and not just old cars like I would buy, but post 2000 models. But I don't know how nice of a car he is expecting for $4k.

Though considering OP doesn't need a car until the fall, he might as well keep saving money and spend a bit more.
 

TheRagnCajun

Member
Oct 29, 2017
590
There are steel and microchip shortages right now. I would estimate production is only at about 70 % across the whole industry. The problem is probably not going away for at least another 4 months.
 
OP
OP
Armadilo

Armadilo

Banned
Oct 27, 2017
9,877
is a 2006 Honda Civic ex for $4,100 with 169k miles on it not a bad deal ? like would the repair costs not be too bad in worst case scenario ? Thanks
 
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