Is now a good time to move upmarket?

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Mar 18th, 2022 5:41 pm

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Mar 15th, 2022 9:48 am

Ken_vs_Ryu [OP]: Deal Addict; Dec 24, 2009; 1168 posts; 1018 upvotes

Mar 15th, 2022 9:48 am

Is now a good time to move upmarket?

With used vehicle prices at all time highs I'm wondering if now might be a good time to upgrade and move upmarket.

The rationale is that while all prices are up, the more expensive the vehicle, the less of an increase it recieved as a percentage of it's value simple because there is a ceiling and limited buyers for really expensive cars.

So is now a good time to trade in that M340i for an M5? Or Audi Q5 to a Range Rover SVR? Thoughts?

10 replies

Mar 15th, 2022 10:05 am

Kkhan15: Deal Addict; Jan 1, 2013; 2081 posts; 1392 upvotes; Durham

Mar 15th, 2022 10:05 am

Rates are also higher

Mar 15th, 2022 10:09 am

NightRain: Deal Fanatic; Jan 5, 2002; 5116 posts; 2952 upvotes

Mar 15th, 2022 10:09 am

Yes and no. The new market is pretty low on inventory and wait times can be excessive. Because of this dealers don't need to move much from the MSRP and certain models are selling easily for well over MSRP. If you have to take a loan you'll be paying more for interest rates too. Sure you'll have more equity built up in your used vehicle and you can make some gains but most dealers will see this as an opportunity to make even more and under value your trade. In hopes of maximizing their profits. If you can do a private sale you'll be way better off, if you rely on a dealership for a trade and new inventory with potential for significant wait times you may be no better off than you should have been with a similar vehicle a few years ago when inventory was flush and rates were low.

That's 30 minutes away, I'll be there in 10.
Beer: The cause of, and solution to, all of life's problems.

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Mar 15th, 2022 2:39 pm

Ken_vs_Ryu [OP]: Deal Addict; Dec 24, 2009; 1168 posts; 1018 upvotes

Mar 15th, 2022 2:39 pm

Ya I suppose a few things need to be true. There is inventory for the vehicle you want to upgrade to, dealer is willing to accept trade at current prices, you don't need to finance straight cash deal.

Mar 15th, 2022 2:42 pm

EP32k2: Deal Expert; Jan 15, 2006; 20033 posts; 20883 upvotes; Richmond Hill

Mar 15th, 2022 2:42 pm

Ken_vs_Ryu wrote: ↑ With used vehicle prices at all time highs I'm wondering if now might be a good time to upgrade and move upmarket.

The rationale is that while all prices are up, the more expensive the vehicle, the less of an increase it recieved as a percentage of it's value simple because there is a ceiling and limited buyers for really expensive cars.

So is now a good time to trade in that M340i for an M5? Or Audi Q5 to a Range Rover SVR? Thoughts?

Nope not happening. Luxury goods have been selling at an all time high for over a year now. Porsche having record sales during the pandemic...

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Mar 15th, 2022 2:46 pm

sik20fan: Member; Dec 11, 2011; 479 posts; 728 upvotes; CALEDON

Mar 15th, 2022 2:46 pm

Sold my leased Jeep with 8,500$ positive equity and got into a benz with 4% discount and 3.99% interest.

Happy with my purchase

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Mar 15th, 2022 3:36 pm

spike1128: Deal Guru; Oct 7, 2010; 14042 posts; 4720 upvotes

Mar 15th, 2022 3:36 pm

Name of the game is. Stay in the same class if you don’t need to upsize. Save on the car, pay it back on gas hahaha.

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Mar 15th, 2022 4:53 pm

NightRain: Deal Fanatic; Jan 5, 2002; 5116 posts; 2952 upvotes

Mar 15th, 2022 4:53 pm

RedStrikeCa wrote: ↑ Private sale is not necessarily better if you trade the car in when you buy a car. I believe you save money not having to pay taxes on the higher amount. Eg if your trade in is 20k and you buy a car for $30k , the $20k is deducted from the total so you only pay taxes on the $10k

Yes that is true. It'll depend on the price of the car you have though. If you can private sale for 25k but the dealer will only give you 18k then the private sale is better. With the right car a private sale will give you more than a trade, even factoring in taxes, more often than not.

That's 30 minutes away, I'll be there in 10.
Beer: The cause of, and solution to, all of life's problems.

+1

Mar 16th, 2022 1:08 am

ES_Revenge: Deal Expert; Mar 23, 2004; 33306 posts; 15225 upvotes

Mar 16th, 2022 1:08 am

Ken_vs_Ryu wrote: ↑ With used vehicle prices at all time highs I'm wondering if now might be a good time to upgrade and move upmarket.

All depends on what your current car will fetch you and what the replacement vehicle costs and what availability is like, on top of that.

Ken_vs_Ryu wrote: ↑So is now a good time to trade in that M340i for an M5? Or Audi Q5 to a Range Rover SVR? Thoughts?

Sure but keep in mind an M5 will net you like 15 MPG in city driving and will probably not even get to 20 on the highway. In the winter, reduce that city number to like 10

Range Rover...well if you really feel like buying a Range Rover. Hopefully new/with warranty in that latter case LOL.

Anyway if you're buying new at these kind of vehicle prices I think it's stupid to buy anything other than an electric.

Last edited by ES_Revenge on Mar 16th, 2022 1:20 pm, edited 1 time in total.

Mar 16th, 2022 2:22 am

spike1128: Deal Guru; Oct 7, 2010; 14042 posts; 4720 upvotes

Mar 16th, 2022 2:22 am

ES_Revenge wrote: ↑ All depends on what you're current car will fetch you and what the replacement vehicle costs and what availability is like, on top of that.

Sure but keep in mind an M5 will net you like 15 MPG in city driving and will probably not even get to 20 on the highway. In the winter, reduce that city number to like 10

Range Rover...well if you really feel like buying a Range Rover. Hopefully new/with warranty in that latter case LOL.

Anyway if you're buying new at these kind of vehicle prices I think it's stupid to buy anything other than an electric.

If you buy Range Rover. Need to be balling to pay for extra in maintenance and gas. Balling hard doesn’t need to buy EV lol.

Mar 18th, 2022 5:41 pm

Jigsaw: Deal Addict; Oct 21, 2006; 1068 posts; 876 upvotes

Mar 18th, 2022 5:41 pm

if finances allow, anytime is a good time to move up

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