Investing

Is buying a car no longer a Liability ?

  • Last Updated:
  • Sep 13th, 2021 10:34 am
[OP]
Sr. Member
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Feb 16, 2017
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Is buying a car no longer a Liability ?

Looks like days are gone when the rubber hits the road the price drops but todays case it is actually opposite the car value is expecting to increase for few more year due to chip shortage .

friend 1 : bought a Jeep on promotion with good discount on brand new 2021 just before prices hit the roof
friend 2 : bought same jeep 2017 model with 80k kms for almost same price as friend 1 now


Used car prices are sky rocketing and dealers are not negotiating prices at all long waiting times for new cars
39 replies
Deal Expert
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Feb 8, 2014
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This is temporary until supply satiates demand.
Don't think todays situation will last forever.
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
Jr. Member
Sep 28, 2011
170 posts
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This is transitory. Buy new (if your model is available and don't expect a deal) or wait. Anyone buying used right now is getting hosed (same goes for boats, seadoos, bicycles, etc).
Deal Fanatic
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Sep 21, 2007
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my daily 2016 corolla with 10k rear end damage increased value by 2.5k since last year Face With Tears Of Joy
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
[OP]
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Feb 16, 2017
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Quentin5 wrote: This is temporary until supply satiates demand.
Don't think todays situation will last forever.
well here is the thing no body is able to predict when this thing will end ..but demand keeps soaring up . unless companies like Tesla start their own semiconductor which will take atleast 10 years if they start now ..it gonna get crazy only
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mattdominic wrote: well here is the thing no body is able to predict when this thing will end ..but demand keeps soaring up . unless companies like Tesla start their own semiconductor which will take atleast 10 years if they start now ..it gonna get crazy only
If you think today represents forever then feel free to "invest" everything you have in automobiles.

I won't bother to try and talk you out of it.
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
Sr. Member
Jul 30, 2012
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mattdominic wrote:
well here is the thing no body is able to predict when this thing will end ..but demand keeps soaring up . unless companies like Tesla start their own semiconductor which will take atleast 10 years if they start now ..it gonna get crazy only
Quentin5 wrote: If you think today represents forever then feel free to "invest" everything you have in automobiles.

I won't bother to try and talk you out of it.
The same phenomena happened in the 70's during inflation. Used autos were "worth" more a year to 2 years later. However, new prices also moved higher and of course pricing was transitory. As for thinking an auto is somehow an "asset" is a big leap. Especially if buying an ICE based vehicle, lol. The good news is your Jeep will be in the junk yard waiting for recycling long before every vehicle manufactured will be EV.
Last edited by DealRNothing on Sep 6th, 2021 1:42 pm, edited 1 time in total.
Sr. Member
Dec 5, 2009
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Transitory. But transitory for how long? 2022? 2023? 2024 or later? Your guess is as good as mine.
Deal Addict
Oct 13, 2006
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also depends on the vehicle how much it'll depreciate. i.e. Jeep Wrangler vs that POS Patriot
Newbie
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Aug 20, 2021
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Alpine84 wrote: Transitory. But transitory for how long? 2022? 2023? 2024 or later? Your guess is as good as mine.
Yeah, I read that the computer chips used in cars today are made in East Asia, but the Corona Delta variant is hitting the region hard and starting to affect their manufacturing.
Member
Oct 20, 2014
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Toronto, ON
There is no planet in which buying a car is not a depreciating asset, unless you're buying some limited edition high-end and/or vintage car no longer in production which people are desperate to have.

If it doesnt check those boxes, i'm sorry a car will always be a depreciating asset. The chip shortage will eventually come to an end, and in my opinion things will most likely stabilize in mid-late 2022. A lot of people like to fear monger and say it will last years, but I feel like that wont be a thing.

The reason prices are increasing for cars right now is because everyone is out there looking for one, and manufacturers slashed their production for various reasons. It's simple supply and demand, nothing more (of course Covid and the chip shortage amplified things).
Deal Addict
May 17, 2012
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faken wrote: my daily 2016 corolla with 10k rear end damage increased value by 2.5k since last year Face With Tears Of Joy
buy low sell high.. take your profits and run

wait wrong forum
Sr. Member
Jan 5, 2018
698 posts
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by liability, you mean the car costs you money?

currently, the rising inflation is pretty much negating every gain people are making.
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Deal Fanatic
Apr 5, 2016
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Used car prices will plummet once economy recovers in 2-3 years. With the electric movement going, it'll compound and make it worse. Only used cars worth buying are sports cars lol.
Sr. Member
Jan 5, 2018
698 posts
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bomber17 wrote: Used car prices will plummet once economy recovers in 2-3 years. With the electric movement going, it'll compound and make it worse. Only used cars worth buying are sports cars lol.
electric used cars are terrible.
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Jr. Member
Aug 9, 2018
114 posts
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jenneth wrote: electric used cars are terrible.
It's true that they are terrible now, but I do expect in 2 years that won't be the case anymore. Those that like new cars will be upgrading and selling their previous cars by the ton.

In the meantime with my lease expiring early 2022, I definitely think I will be buying back the car at residual this time and resell it for an easy $5k+. Usually it's not worth the trouble, but now resale value looks to be much higher than the residual.
Sr. Member
Jan 5, 2018
698 posts
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RockstarLeo wrote: It's true that they are terrible now, but I do expect in 2 years that won't be the case anymore. Those that like new cars will be upgrading and selling their previous cars by the ton.

In the meantime with my lease expiring early 2022, I definitely think I will be buying back the car at residual this time and resell it for an easy $5k+. Usually it's not worth the trouble, but now resale value looks to be much higher than the residual.
We are buying back all the leases right now and making so much money.

But this is only temporary.....only thing that's important right now is having cars and inventory.....

I would never ever buy an electric car. Not only is there lack of trained technicians to fix your car, let alone lack of technicians for anything, parts and computer components are impossible to get ahold of.

I foresee this being a major problem for electric car industry and major manufacturers having to employ and train electric technicians directly...
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Jr. Member
Aug 9, 2018
114 posts
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jenneth wrote: I would never ever buy an electric car. Not only is there lack of trained technicians to fix your car, let alone lack of technicians for anything, parts and computer components are impossible to get ahold of.

I foresee this being a major problem for electric car industry and major manufacturers having to employ and train electric technicians directly...
Any interesting and reliable sources on that?

I would think if anything electric vehicles will be much easier and less costly to train people on. ICE vehicles are already chock-full of electronics parts; I'd be curious to see what parts can fail on electric vehicles that don't already exist on ICE vehicles.
Sr. Member
Jan 5, 2018
698 posts
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RockstarLeo wrote:
Any interesting and reliable sources on that?

I would think if anything electric vehicles will be much easier and less costly to train people on. ICE vehicles are already chock-full of electronics parts; I'd be curious to see what parts can fail on electric vehicles that don't already exist on ICE vehicles.
You hit the nail on the head. ICE vehicles are already full of electric parts that costs arms and legs to fix. More and more technicians are looking for exit. It's getting more and more complicated to fix existing vehicles and now we are throwing in electric vehicles which doesn't come with any aftermarket products nor technicians and infrastructure ready to repair these vehicles.

It takes days to communicate with head office to get clear idea about how to fix certain electronic components. We have a car that we can't fix an AC on for a year now....wtf....


I know that a lot of website analysis looks at estimate maintenance but they always fail to look at actual repair cost of major components in event of accident or huge incident.

Did you know that we have almost two years worth of mechanic apprentice who are waiting for their license right now? It's a shit storm of epic magnitude.
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