Automotive

Car re-sale prices continue to drop - does it make sense to buy new?

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Deal Guru
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Mar 22, 2005
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Car re-sale prices continue to drop - does it make sense to buy new?

With SUV/CUV sales soaring and car sales dropping re-sale prices for cars continue to drop. Saw this article which is a great read.

http://www.autonews.com/article/2017070 ... car-prices

Personally I think if you are in the market for a car (not a CUV/SUV) you are much better off buying used. Just a quick scan of used car ads confirms it. The re-sale prices for those selling is not great.

"America's renewed lust for new crossovers, SUVs and trucks instead of smaller cars is already hurting major auto companies, which posted their six consecutive month of declining new vehicle sales in June. But millions cars that were leased two or three years ago, many of them used compact and midsized cars with low mileage, are heading toward auction lots and used car dealerships. That surge in supply threatens to depress prices for new and used vehicles, raising the risk of losses for automakers and finance companies on lease deals. It also undercuts the value of cars customers want to trade in for a new vehicle".
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Deal Expert
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Jul 30, 2007
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Is this applicable to the Cdn car market ?
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Aug 22, 2011
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Center of Universe
For that new carseat smell, yes!
Deal Expert
Feb 29, 2008
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Montreal
booblehead wrote: Is this applicable to the Cdn car market ?
Im curious. Canada has always had a robust compact car and hatchback market, hence the insane prices on civics and Mazda 3s on the used market.

On the other hand if I wanted a fusion or Mazda 6, I would look hard at the used market. I'm guessing Chrysler 300s come for free with a coffee and dozen timbits.
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Mar 22, 2005
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mr_raider wrote: Im curious. Canada has always had a robust compact car and hatchback market, hence the insane prices on civics and Mazda 3s on the used market.

On the other hand if I wanted a fusion or Mazda 6, I would look hard at the used market. I'm guessing Chrysler 300s come for free with a coffee and dozen timbits.
From what I'm hearing from a buddy that sells cars is that yes small cars are still stronger here vs the U.S. but less so than they used to be. Prices for compact SUVs however are very strong.
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Jul 14, 2002
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kool1 wrote: From what I'm hearing from a buddy that sells cars is that yes small cars are still stronger here vs the U.S. but less so than they used to be. Prices for compact SUVs however are very strong.
Supply and Demand, Here's a good site for a general idea of what the North American market is purchasing.
http://www.goodcarbadcar.net/

SUV/Compact SUVS are definitely eating away the market share for the sedans.
Wagons are back like in the 90s! And Compact SUVs are being pushed as the vehicle for millenials/young couples without kids.
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dantey wrote: SUV/Compact SUVS are definitely eating away the market share for the sedans.
Wagons are back like in the 90s! And Compact SUVs are being pushed as the vehicle for millenials/young couples without kids.
I'm not sure about wagons - compact SUVs are replacing compact cars at an alarming rate though!

$ profit for automakers.
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Jul 14, 2002
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kool1 wrote: I'm not sure about wagons - compact SUVs are replacing compact cars at an alarming rate though!

$ profit for automakers.
pump them full of technologies to make them attractive. i have to say they look nice though. but are probably only built to be disposable every 10 years.

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