Used car prices these days are nuts

[12,000 RPM]

Down here depreciation is still crazy. Especially on euro luxury sedans.

Are people good about maintenance down there? What are the warranties like?

[MexicoCityM3]

Are people good about maintenance down there? What are the warranties like?

It's a crap shoot. For most new cars people will stick to the manufacturer's recommended maintenance while the warranty is still valid. After that, who knows? Most people do not keep service records, even among enthusiasts like in the club.

Warranties are lower than in the US for most if not all brands. And CPO programs are in their infancy, at most with a 12 month warranty.

BMW specifically offers a 3 year warranty with maintenance.

[Northlands]

Down here depreciation is still crazy. Especially on euro luxury sedans.

Depending on the tier level of the Luxury sedan, depreciation for them where I live is rather high as well. We're talking high end 5 series and up type vehicles though. Some Lexus models do ok, but overall, most high level Lux drops like a stone after a few years.

[280Z Turbo]

This would only reduce drag

Perhaps he should also disconnect 2 of the injectors. Saves gas and reduces horsepower.

[MexicoCityM3]

Depending on the tier level of the Luxury sedan, depreciation for them where I live is rather high as well. We're talking high end 5 series and up type vehicles though. Some Lexus models do ok, but overall, most high level Lux drops like a stone after a few years.

A 2012 5er here has lost about 43-50% in value already. The higher the trim the worse (or better depending on viewpoint) it gets. 2013 M5s list for 30-40% below their new price.

[veeman]

The few people I know who have bought high end luxury cars on the used market have all regretted it though.  They didn't really have enough coin to comfortably buy them new and then they get flustered as the cost of maintaining them is much higher than their previous Camcord. 

200+ dollars a tire, 1000 dollar minimum every time car is taken to the dealer, high insurance, etc. etc.  Then they really will take a bath if they try to unload it because now it's a 2nd owner luxury car they're trying to sell.

The person who buys a new MB E class or S class usually knows exactly what they're getting into and they're willing and able to pay to get into that club.  The person who buys the 3 year old used E class instead of the Toyota Avalon they were planning often doesn't really get what it costs to be in that club.

This is just from my experience though with relatives/friends.     

[Soup DeVille]

Who the hell buys a used car and then takes it to the dealer for routine maintenance?

[GoCougs]

The few people I know who have bought high end luxury cars on the used market have all regretted it though.  They didn't really have enough coin to comfortably buy them new and then they get flustered as the cost of maintaining them is much higher than their previous Camcord. 

200+ dollars a tire, 1000 dollar minimum every time car is taken to the dealer, high insurance, etc. etc.  Then they really will take a bath if they try to unload it because now it's a 2nd owner luxury car they're trying to sell.

The person who buys a new MB E class or S class usually knows exactly what they're getting into and they're willing and able to pay to get into that club.  The person who buys the 3 year old used E class instead of the Toyota Avalon they were planning often doesn't really get what it costs to be in that club.

This is just from my experience though with relatives/friends.     

100% agree. In general luxury cars aren't very good at being cars really when accounting for the huge step function in cost to own/maintain/repair, save for Lexus.

[GoCougs]

Who the hell buys a used car and then takes it to the dealer for routine maintenance?

You gonna take your 2012 S550 to Jiffy Lube?

[Soup DeVille]

You gonna take your 2012 S550 to Jiffy Lube?

You think you're getting a better job done at the dealership?

Protip:  when buying used cars, know a decent mechanic, or be prepared to work on it yourself.

[MrH]

Yeah, on cars like Accords, buying slightly used doesn't really make sense at all.  I'd rather pay a couple grand more and get it new.

[AutobahnSHO]

You think you're getting a better job done at the dealership?

Protip:  when buying used cars, know a decent mechanic, or be prepared to work on it yourself.

+1

[GoCougs]

You think you're getting a better job done at the dealership?

Protip:  when buying used cars, know a decent mechanic, or be prepared to work on it yourself.

Protip: if you buy a used S550 and have to "be prepared" (i.e., can't afford to take it to the dealer for service and repairs) you can't afford the car (which was veeman's excellent point).

[GoCougs]

Yeah, on cars like Accords, buying slightly used doesn't really make sense at all.  I'd rather pay a couple grand more and get it new.

Buying slightly used is still a better deal financially - and you'd better pay a lot less than a couple grand of list.

[AutobahnSHO]

Buying slightly used is still a better deal financially - and you'd better pay a lot less than a couple grand of list.

Depends actually- if you're buying just 1-3yrs old it could swing either way, used car prices are nuts high right now..

And that's just if you're paying cash- if someone has to get a loan, it might make more sense for them to get a new car at 0% than a few percent on a used car...

[Byteme]

I just got back from the local auto mall's used car warehouse, looking for a replacement for my Mazda, and I'm just blown away by the prices on used cars these days.

Anybody else seeing this in their area or is this a localized phenomena?

Keep in mind what you are seeing are asking prices, not the price the cars actually sell for.

[MexicoCityM3]

Protip: if you buy a used S550 and have to "be prepared" (i.e., can't afford to take it to the dealer for service and repairs) you can't afford the car (which was veeman's excellent point).

Fortunately there are very good independent shops that specialise in high end euro brands exactly for this. But still, there you save maybe 20% - 30% vs the dealer. You still have to go in knowing that shit can get expensive at any time.

So you're mostly right IMO.

[Speed_Racer]

Depends actually- if you're buying just 1-3yrs old it could swing either way, used car prices are nuts high right now..

And that's just if you're paying cash- if someone has to get a loan, it might make more sense for them to get a new car at 0% than a few percent on a used car...

Yeah, the depreciation hit just isn't as big as it used to be. That extra couple grand also buys you peace of mind at the very least.

[Soup DeVille]

Protip: if you buy a used S550 and have to "be prepared" (i.e., can't afford to take it to the dealer for service and repairs) you can't afford the car (which was veeman's excellent point).

No point in paying more than you have to just because you can.

[CALL_911]

Protip: if you buy a used S550 and have to "be prepared" (i.e., can't afford to take it to the dealer for service and repairs) you can't afford the car (which was veeman's excellent point).

I agree

[12,000 RPM]

Nobody is buying S550s anyway.... lease n toss....

[Gotta-Qik-C7]

You think you're getting a better job done at the dealership?

Protip:  when buying used cars, know a decent mechanic, or be prepared to work on it yourself.

Thats my motto! "You better know how to turn a wrench or have a good friend that does!" I tell people all the time "If it was expensive when new it'll be just as expensive when it's old!"

[Soup DeVille]

Thats my motto! "You better know how to turn a wrench or have a good friend that does!" I tell people all the time "If it was expensive when new it'll be just as expensive when it's old!"

Or at the very least, a good mechanic you can trust.

The absolute last resort is taking the car to the dealership for anything outside of warranty work.

[Gotta-Qik-C7]

Or at the very least, a good mechanic you can trust.

The absolute last resort is taking the car to the dealership for anything outside of warranty work.

I agree! I have two guys that will handle the work that I can't! One is kind of high (still cheaper than the stealership) and all he works on is high end cars!

[Eye of the Tiger]

Me car prices...

2010 Accent GS 3dr 5spd
New
MSRP: $11,995

Now with 60K

Edmund's TMV
Trade: $4,450
Private: $5,422
Retail: $6,403

KBB
Trade: $4,619
Private: $5,812
Retail: $7,686

Actual dealer asking prices:
$10,991  ('10 auto) 55K http://atlanta.craigslist.org/atl/ctd/4670000969.html
$9,836 ('10 SE auto 59K) http://norfolk.craigslist.org/ctd/4676043928.html
$9,288 ('10 4dr 66K) http://atlanta.craigslist.org/sat/ctd/4658149763.html
$5,995 ('09 auto 87K)  http://washingtondc.craigslist.org/nva/ctd/4672877819.html

[AutobahnSHO]

crazy!

[12,000 RPM]

I always refer to Accords because that's my life. I bought a 93 Accord with 93K miles in 2003 for $2200. A 2004 Accord today with more miles goes for about 3-4x as much.

One funny thing though is how much of a beating certain cars are still taking and what their depreciation says about the change in priorities. A 2004 MB S500 goes for about $1-2K LESS than a same year Accord. Seems like the avg American has been humbled by the recession and is putting a higher value on basic transportation rather than cheap luxury.

[veeman]

I always refer to Accords because that's my life. I bought a 93 Accord with 93K miles in 2003 for $2200. A 2004 Accord today with more miles goes for about 3-4x as much.

One funny thing though is how much of a beating certain cars are still taking and what their depreciation says about the change in priorities. A 2004 MB S500 goes for about $1-2K LESS than a same year Accord. Seems like the avg American has been humbled by the recession and is putting a higher value on basic transportation rather than cheap luxury.

Wow.  People really like them some Accord. 

[Northlands]

Wow.  People really like them some Accord. 

I bet Camry's are in a similar price category. Popular mid-sizers that are reliable will hold their value.

[12,000 RPM]

Big time.

Long gone are the days when you bought a Mercedes to drive into the ground. They are bought and built to be seen in, which makes an old one immediately useless.

The last one came out in 2007... those are retailing at just over the $20K mark. I think in 2-3 years they will be in the 4 digit range too.