"TheOnelectronic" (theoneelectronic)
02/01/2016 at 02:23 • Filed to: None
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"TheOnelectronic" (theoneelectronic)
02/01/2016 at 02:23 • Filed to: None | 6
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...unless you’re looking to buy a used car in which case you’ll find ones with 30,000 miles going for MSRP.
red_
> TheOnelectronic
02/01/2016 at 02:37 |
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WRX?
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TheOnelectronic
> red_
02/01/2016 at 02:38 |
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Yep. It doesn’t help that I’m trying to find a -just- WRX, not limited or premium (see previous post about sunroofs) so there’s 5 in a 300 mile radius.
Eric @ opposite-lock.com
> TheOnelectronic
02/01/2016 at 06:41 |
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Truth. The trade in can be pretty high to match, too.
Of course, a WRX is about the worst car to buy used because their depreciation doesn't in any way match their wear or condition. Utterly irrational resale values.
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TheOnelectronic
> Eric @ opposite-lock.com
02/01/2016 at 06:46 |
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I’ve literally seen year-old STIs with 30k+ miles going for -above- MSRP. How is that even possible? I even checked: the local dealer had several. It’s not like they were scarce.
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Eric @ opposite-lock.com
> TheOnelectronic
02/01/2016 at 06:56 |
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Unmolested used examples of my car (up to 3.5 years old now) sell for almost as much as you can negotiate a new one down to and incentives can push them even lower. Considering 0% interest loans, I don’t know how these used cars sell, yet I know people that have bought them.
What never makes sense is how mileage is worth so little on top of less remaining warranty.
There are many good reasons I bought my car new.
jariten1781
> Eric @ opposite-lock.com
02/01/2016 at 07:24 |
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The only good reason I’ve seen for this is that insurance can be significantly cheaper on a late model used car. Some companies base their rates on actual used market value (this wouldn’t help there), but others base it off a depreciation formula. Even if the car hasn’t actually depreciated much, their formula assumes it has and gives much cheaper rates. This is especially true for folks who have to be on special, high rate insurance (SR-22s, a billion claims, young driver, etc.).
Also, I’m not sure it affects the more expensive guys like this example (it might, I imagine there’s money in that community), but the used car market gets all askew in places where plates/inspection remain with the car that have a large undocumented/illegal population. Those folks buy used, with cash, based on how much time remains on the inspection or registration sticker. There’s an entire market where, at the time the stickers expire, they go trade in to a shady dealer that specializes in this, their expiring car and purchase a different used one with >11 months to go or whatever. The dealer then has the car inspected and puts it on the lot with a full time period remaining and sells it to the next group. This is expected to decrease as the police/traffic enforcement get automatic license plate readers, but no one has them en masse yet and in the places where they are prevalent the folks driving the stickered but unregistered cars know the areas to avoid.
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Eric @ opposite-lock.com
> jariten1781
02/01/2016 at 08:58 |
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I didn’t realize there was demand for slightly used cars simply for insurance savings. My delta was $100 from liability only on a 15-year-old car to full coverage on a brand new car. I couldn't imagine the difference being big enough to make up for the depreciation hit the second owners are taking right out of the gate.
What’s weird is that SoCal has very low used car prices in spite of a high illegal immigrant population. But there are ways around all the systems if you’re crafty enough. I wonder why straw registering cars isn’t popular (mind you, you’d need to get a decent premium for it to include insurance with the registration to cover your ass). Hell, do cheap rental cars and just swap them regularly.
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jariten1781
> Eric @ opposite-lock.com
02/01/2016 at 10:00 |
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Yeah, for us normal schmoes it won’t move the needle, but for high risk guys it can be huge. Coworker had to get on an SR-22 (don’t know for sure the reason) and the insurance on his IS350 went from a bit over 100 per month to over 500 per month. Being able to save 10-30% because the insurance company uses a depreciation scheme vs. a market value scheme is a big deal if you’re in that boat and don’t want to drive around in a no-value car like most SR-22 folks end up doing.
Straw registering is pretty popular I think. When I used to watch the local news there’d be a story every couple years where they’d break up some ring that was paying people in old-folks homes to register cars which would be sold out to illegals. Remember one in particular back in ~05 down in SC where some old lady who was legally blind got caught with like 30 cars registered in her name. Oops. I imagine the communities have different tactics based on what works for the area. When I was living up in WA I never saw the ‘buy a new car every year’ scheme, but it’s straight up blatant in VA. There are lots here (though less than there were 7-8 years ago) that advertise solely in Spanish newspapers with 'Cash only, all cars inspected, no questions and we'll put you in a vehicle today'.
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Eric @ opposite-lock.com
> jariten1781
02/01/2016 at 10:51 |
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Also of note: I do 1-year insurance policies that I pay up front, so my monthly difference would be under $10...
I always thought the high resale value of cars in the PNW was due to the number of accidents (people up here crash a lot, which reduces the used car supply) and smaller market, but they also drink a lot, so maybe that’s why there is so little used car depreciation relative to SoCal. I’m sure a lot of people here are on SR-22s and $5k extra a year for insurance is a huge expense. Still, I don’t know how on earth it’s enough cheaper to make it worth it. $1-1.5k just isn’t enough to compensate for $6-8k of depreciation.
Brian Silvestro
> TheOnelectronic
02/01/2016 at 21:15 |
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just get an ‘07 STi
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TheOnelectronic
> Brian Silvestro
02/01/2016 at 21:19 |
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No joke, the hawkeye is my favorite, probably. But I just do not trust used STI’s.
That and they’ve barely depreciated.
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Brian Silvestro
> TheOnelectronic
02/01/2016 at 21:21 |
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Here are some more cars you should get
E30 M3
Aircooled 911
Alfa Giulia
E28 M5
Elan
Cortina
Cayman
Defender
E46 M3
996
Evo
AZ-1
Skyline
RX-7 (FD)
E34 M5
240sx with a V8
Cappuccino
E30 Wagon
280Z
2002
500E
Crown