Used GTI prices are nearly as high as those for new MK7.5s

[Jgilber0]

If the market tanks/changes, you wonder if people are just gonna be buried/upside down on these (high) used car loans.
Or is the new norm?, and then new car makers will pull back on incentives since there's still high demand (with low supply).

Regardless, it's crazy that people are paying there high prices for the used cars right now. Great time to sell, but a bad time (IMO) to buy used.

I wonder if the used car market will go cold suddenly. As you say, @snobrdrdan, some debtors will be underwater if that happens.

If it just eases back to normal over a long period of time, that will help a lot as the amount of remaining balances will be lower.

For new cars, it seems to me that the MK7.5 is a special case vs. other makes and models. With the new MK8 coming, I suspect buyers are waiting instead of snapping up the remaining MK7.5 inventory.

I think this is a short-term opportunity to trade up or get into a new GTI at low cost vs. used. I strongly believe that we will see much higher new GTI prices after all the MK7.5s are gone. That is unless the MK8 turns out to be a slow seller.

 

[Jgilber0]

Here’s an example. How does this make any sense at all? Is it that shoppers are not looking at new cars?

 

[Chogokin]

That is tempting. But after tax and tags, dealer fees, and new parts you are likely to be $9K or 10K out of pocket. That is a lot of cash to replace a car with a lot of remaining life left.

It feels like a different equation if you already own a GTI versus that for someone like me who is buying in for the first time.

It is encouraging to see that the used MK7 market is so strong. That gives confidence in the car itself.

That's why the thought lasted only a second.

To get something I wanted...I'd probably have to add another 15 to 20k on top of what I sold my GTI for. Unless something I really wants comes up at a bro deal...I'm going to hang onto my GTI.

 

[JC_451]

Used car prices will probably stay high if the chip shortage means new cars stay close to msrp or go above it in certain circumstances (mk.8 R gonna be marked up crazily)

Seems like only the dealers are benefitting from these prices unless you're just dumping a car you no longer need.

 

[Acadia18]

Here’s an example. How does this make any sense at all? Is it that shoppers are not looking at new cars?

View attachment 212249

View attachment 212251

It doesn't overall, but Carvana's prices are a bit higher than average anyway. They're really capitalizing on the fact that many people under 40 will do whatever they can do avoid interacting with someone. The ability to buy a car completely online never have to speak to someone, and have it dropped off at your front door? People pay a premium for that.

 

[VL3X]

Used sport car prices are high everywhere now. Weather is getting nicer, stimulus checks have been cashed, and people are ready to have fun after being stuck home for the last ~14 months or so. Most have saved money during the pandemic too by not going out as often and just being more careful in general. There was lots of money to be made in the stock market and crypto markets the past year too. I've been GT4 shopping for the last year and the 981 (2016) prices have gone up nearly $20k! They were easily available in the low 80s last summer and now they are listed for 90-105k. It's a crazy time.. it'll drop back down though.

 

[Chogokin]

I just checked Shift.

 

[Jgilber0]

What year, @Chogokin?

 

[Mreed055]

I got an offer from Carmax for 20k for my 2017 GTI Sport with 20k miles. For a hot second I thought about selling to them.

Sold two cars to carvana recently, they offer insane value for their trade ins. I love it.
I just got my 17 sport with 40k miles CPO for 18500. Took a lot of looking to find something I was comfortable paying and I even though this was on the high end. I thought about new but I had about 20k cash to purchase a mk7 gti, and I really preferred just getting the used and not fussing with another auto loan.

 

[Chogokin]

What year, @Chogokin?

2017 Sport

 

[KevinC]

I wonder if the used car market will go cold suddenly. As you say, @snobrdrdan, some debtors will be underwater if that happens.

Situation is already ugly.....

https://www.thetruthaboutcars.com/2021/04/subprime-auto-market-looking-extra-rough-in-2021/

 

[Jgilber0]

Situation is already ugly.....

https://www.thetruthaboutcars.com/2021/04/subprime-auto-market-looking-extra-rough-in-2021/

@KevinC that is about consumers losing their income and falling further behind due to COVID-19 economic losses. Also a good point.

These sky-high, unsustainable valuations are a different issue and will be a source of further auto loan defaults on top of that.

 

[Jgilber0]

2017 Sport

You’re right $22K is crazy money for a 2017!

 

[wasbaggedonce]

I got an offer from Carmax for 20k for my 2017 GTI Sport with 20k miles. For a hot second I thought about selling to them.

I got the same offer for my 2017 Sport but mine has 40k miles.

 

[IanCH]

Here’s an example. How does this make any sense at all? Is it that shoppers are not looking at new cars?

View attachment 212249

View attachment 212251

This car is improperly labeled an s, one look at the headlights shows it is an se or autobahn

Given that I bought a new 2020 autobahn for 33 last year, I'm guessing it's an autobahn