Used Cars (Dealer) AFTER COVID-19

Don`t be surprised if there`s a small run on used cars initially. When people start returning to work public transport will be a no-go zone for many especially the paranoid. I just do not see how it`s going to be possible to social distance on a bus or subway unless you have like 10-15 people per car or bus which would be preposterous. Plus Car2Go is gone and people will not be so quick to jump into other car sharing, anyone could have used it and sneezed/coughed all over the interior.

New cars will not have any problem selling with incentives. Speaking of Car2Go Calgary had a whole yard full of brand new 2019 GLAs that were to be added to the fleet but they exited the city. Mercedes Calgary discounted them $14,000k + 2 years extra warranty and sold over 100 cars in 4-5 days despite being essentially closed. With seemingly endless credit available to anyone in minutes cars will sell, there are tons of people who just don't care to save even after the covid shock.
 
Yeah, I've seen them on RFD. People were super stoked even though it's not all that desirable of a car really. The incoming model looks much more appealing.
 
Yeah, I've seen them on RFD. People were super stoked even though it's not all that desirable of a car really. The incoming model looks much more appealing.

Yeah exactly and they were base models too, no packages whatsoever. I was surprised they cleared them out in a few days despite being closed. Many dropped nearly $40 large sight unseen, signing docs online. Even paid $1000+ for shipping. Further proof we are living in different times.
 
À vendre bientôt.

Pas pire, tu vas l'avoir eue presque 10ans. Mais, je pense que tu vas le regretter.

Acheter un véhicule usagé, c'est comme acheter une paire de souliers déjà chaussés... à moins d'avoir exactement ce que tu veux.
 
Yeah, I've seen them on RFD. People were super stoked even though it's not all that desirable of a car really. The incoming model looks much more appealing.

I was thinking of the used GLAs Car2Go used to have in MTL... forgot all about it with Covid. Any idea if they already auctionned them?
 
So I were looking at a Used car just prior to COVID-19 but decided to wait to see how things would work out through this whole pandemic.

When the dealerships start to open up.... Do you in the used market they will be more thirsty to make deals? Will the loan rates go lower? higher?

What do you think the used market at the Dealerships will look like Post Covid-19?

If you are not in a hurry , I would wait at least 30 days once they open.
The logical course would be that worse case scenario pricing would remain the same, if not of course dropping...but it won't be instant right after they open.

On another hand, I was thinking as well, that a lot of people that lease ends / ended this month , would be tempted to buy back their cars instead of getting a new one...so the used car market might get short.

Only time will tell what will really happen . Keep us posted, I'm curious.
 
Acheter un véhicule usagé, c'est comme acheter une paire de souliers déjà chaussés... à moins d'avoir exactement ce que tu veux.


Je te ferais remarquer que j'avais acheté ma MINI usagée de 2 ans, et je l'ai modifié à ma main pour avoir exactement ce que je voulais! Je ne verrais pas pourquoi je ne pourrais pas le faire avec un autre usagé!
Acheteur neuf et payer la grosse dépréciation pour tout le monde... Non Merci. Avec les CPO, je ne verrais pas pourquoi?! Mais bref... c'est ma vision.


If you are not in a hurry , I would wait at least 30 days once they open.
The logical course would be that worse case scenario pricing would remain the same, if not of course dropping...but it won't be instant right after they open.

On another hand, I was thinking as well, that a lot of people that lease ends / ended this month , would be tempted to buy back their cars instead of getting a new one...so the used car market might get short.

Only time will tell what will really happen . Keep us posted, I'm curious.

I for sure will keep this post updated. I will wait to see what the first of the new month of May brings. Its all quite a guessing game.
I`m in no ULTRA rush to buy another car... I have my Motorcycle i drive all summer for work purposes and I can take my car when it rains.

Its just that one of the cars i was looking at is a Demo car and has been for sale for more than 90 days.
 
Je te ferais remarquer que j'avais acheté ma MINI usagée de 2 ans, et je l'ai modifié à ma main pour avoir exactement ce que je voulais! Je ne verrais pas pourquoi je ne pourrais pas le faire avec un autre usagé!
Acheteur neuf et payer la grosse dépréciation pour tout le monde... Non Merci. Avec les CPO, je ne verrais pas pourquoi?! Mais bref... c'est ma vision.

Tu viens de le dire toi-même, tu l'as modifiée à ta main pour avoir exactement ce que tu voulais. Donc, lors de ton achat, tu n'avais pas exactement ce que tu voulais et que t'as du la modifier pour avoir exactement ce que tu voulais.

T'sais, c'est pas pire, une Cooper, ça se personnalise pas trop mal mais c'est pas toujours le cas avec d'autres modèles.
 
Tu viens de le dire toi-même, tu l'as modifiée à ta main pour avoir exactement ce que tu voulais. Donc, lors de ton achat, tu n'avais pas exactement ce que tu voulais et que t'as du la modifier pour avoir exactement ce que tu voulais.

T'sais, c'est pas pire, une Cooper, ça se personnalise pas trop mal mais c'est pas toujours le cas avec d'autres modèles.

Ont s'entends que ma Modele de MINI que je voulais n'existait pas au Canada, et il avait juste 100 faits à l’État Unis... Peu importe.. Il fallait que je le modifie et le mettre à ma main.
 
So far, I've got an answer from one dealer; willing to play a bit on price but interest rate on 60 Months is 6.99%..... No thanks!
 
I think last year I was looking at interest rates were somewhere between 4.99 to 5.99

This is for a 2017 car. They said they plan on opening back up May 11th officially unless things change, we'll see if interest rates change.
 
Nope did not shop prior to this.

This is for a 2017 car. They said they plan on opening back up May 11th officially unless things change, we'll see if interest rates change.

That's why on certain vehicles that have super solid resale value like tacomas and wranglers you're sometimes better off buying new. The non-competitive interest rates make the savings on the otherwise cheaper used cars so minimal over the term of the loan.
 
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That's why on certain cars vehicles have super solid resale value like tacomas and wranglers you're sometimes better off buying new. The non-competitive interest rates make the savings on the otherwise cheaper used cars so minimal over the term of the loan.

Agreed, everything must be considered. I COULD ask them to see how much they're willing to budge on price, but I still feel that 6.99% is abusive. I'm not in a rush, we'll see when they re-open officially how the banks will react.

As it stands, if my calculations are right, on a car worth 23k$ it would cost me almost 5k$ to finance it on 60 months at 6.99%. Definitely no deal and I doubt they'll drop even 3k$ off the 23k$.

In this specific case, car was worth 50k$ when new, 3 years ago...
 
Agreed, everything must be considered. I COULD ask them to see how much they're willing to budge on price, but I still feel that 6.99% is abusive. I'm not in a rush, we'll see when they re-open officially how the banks will react.

As it stands, if my calculations are right, on a car worth 23k$ it would cost me almost 5k$ to finance it on 60 months at 6.99%. Definitely no deal and I doubt they'll drop even 3k$ off the 23k$.

In this specific case, car was worth 50k$ when new, 3 years ago...

Rate is now 6.99% and it was 4.99 - 5.99% before?

According to MY calculations based on 23 k and 60 months interest paid should be :
4.99% - ( payment around 433$)
5.99% - ( payment around 444$ )
6.99% - ( payment around 455$)

So IF before you were getting 4.99% and now 6.99% you are only about 1.4k down
Just saying...
 
Rate is now 6.99% and it was 4.99 - 5.99% before?

According to MY calculations based on 23 k and 60 months interest paid should be :
4.99% - ( payment around 433$)
5.99% - ( payment around 444$ )
6.99% - ( payment around 455$)

So IF before you were getting 4.99% and now 6.99% you are only about 1.4k down
Just saying...

My gfs car is at 4.99%, two year old loan.

Granted, 1.4k isn't much but it adds up to 5k$ in total, which is definitely money I'd rather save. I would have hoped to see a bigger "discounts" on rates from banks but maybe we're too early for that. 3.99% for instance but maybe I'm dreaming...

I would have never guessed my mortgage rate would go all the way down to 1.45% soo at this point it can go either way. Just seems like 7% is high and getting fairly close to personal loans territory and typically there used to be a fairly big difference between those two types of loans.
 
Last year was a totally different ball game. The extra 100-200 basis points you see from a year ago is the risk premium. With an uncertain future and unemployment at 20% the increase from lenders is justified as you can see based on people who don't even have the monthly rent or mortgage payment saved up let alone a used car payment. Even mortgages have are higher than they were 2 months ago despite the BOC rate being at 0.25 and the 5 year at near record lows.

And in case you didn't know most used auto loans are front loaded, first payments are mostly interest NOT principal, the principal starts to go down at the back end of the term so you will have negative equity for a while if you put zero down.
 
So far, I've got an answer from one dealer; willing to play a bit on price but interest rate on 60 Months is 6.99%..... No thanks!

You looking for used?
Cuz that's the rate banks give you in the used.
We don't have rates from like the manufacturer for those, that all comes from banks.

HOLY! 6.99%! WOW.

Do you know how much it was pre-Covid?

6.99%.
Anyways, where I work that's where things have been for the past two years or so.
 
You looking for used?
Cuz that's the rate banks give you in the used.
We don't have rates from like the manufacturer for those, that all comes from banks.



6.99%.
Anyways, where I work that's where things have been for the past two years or so.

I know someone in my family who JUST purchased a 2015 Volvo from John Scotti at 1.9% with Scotia Bank.... So yeah, each dealer is NOT the same. Automobile en Direct also told me their rates start at 0.9% based on credit.
 
I know someone in my family who JUST purchased a 2015 Volvo from John Scotti at 1.9% with Scotia Bank.... So yeah, each dealer is NOT the same. Automobile en Direct also told me their rates start at 0.9% based on credit.

They are all the same or almost. But for sure, you are confusing certified and non certified.
A certified BMW ( warranty by BMW ) is 1.9%. A non-certified one is 5.99%. At the same dealer.
 
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