Low ball trade in offers

[ElDuder]

I mean book for my WRX I got out of was $25-$26k but Carmax offered $24k and the dealer I traded it in to gave me $22.5k and saved me more tax than I would have paid with $24k cash. Dealers can put up used car prices all they want but it doesn't mean people are actually paying that. Used car buying is all about price negotiation and especially now with interest rates at an all time high.

Interest rates aren’t at an all-time high.

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[Cornercarver]

All time high interest rates were about 40 years ago...
...that said we are certainly coming out of a period of extremely low rates.

 

[Blindeye_03]

Interest rates aren’t at an all-time high.

Ive never seen rates this high for cars (Im 41) - when were they higher than 6-6.5% for a new car? And what were they?

 

[Cornercarver]

Ive never seen rates this high for cars (Im 41) - when were they higher than 6-6.5% for a new car? And what were they?

New car rates were 14.82 % - with good credit- in 1980. Used car rates were over 19% in 1980.
Just to give some perspective.
So while higher now than a year or two ago, car financing rates are still abiut half of their all time high.

 

[Shankmeyster]

Yeah screw that. And here I thought 7% new car APR was insane.

 

[Tickle]

Ive never seen rates this high for cars (Im 41) - when were they higher than 6-6.5% for a new car? And what were they?

1990-2010 or so they were higher.

 

[Blindeye_03]

Yeah screw that. And here I thought 7% new car APR was insane.

Exactly my thought lol. My car is currently financed at 2.8% and I got it back in October 2021. I thought that was high.

 

[Cornercarver]

Over times, economic forces will balance out rate/price/supply/demand until harmony is achieved. But before that happens, it's a rollercoaster.

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