Market adjustment - resell value

Question of the day:

Do you think all these market adjustment markups with kill the Toyota Tundra resell value with the negative equity? Would Toyota have the same issues GM/Chevy had with resale values?

 

Find another dealer.

 

No.

What kills it is over inventory because the manufacturer is stuck fullfilling contracts.

 

Nope. It won't make any difference. All car companies are doing it. As much as Toyota is doing it they aren't even close to the top of the list for markups. Chip shortage isn't going to end soon. Inflation is here to stay for awhile. It kinda sucks but it is what it is.

https://www.motortrend.com/news/avoid-dealer-markups-2022-brands-pricing/

 

Ok I’m three weeks in to my 6-9month wait list sentence. I hope some how Toyota speeds up the process soon. I wonder when the new Sequoia comes out , the tundra waitlist will speed up as some buyers might drop off the tundra list for the for sequoia.

 

My accountant told me my 2021 lb dc, depreciated in value all most $20,000 in 3 months with 300 miles on it. Paid 41k. Oh well.

 

So your accountant is telling you that your 21 Tundra is only worth 21k? That's simply just not true.

 

I’m surprised no major news stations is running a story on the markups, you think it would be something good to show its viewers.

 

Wife's Honda Odyssey got totaled (other driver's fault)...only one Odyssey van (new or used) at 3 different dealers....of course it had to be the top trim level....I saw a listing on the sticker in addition to MSRP it was AMV for $1400....I asked the salesman what that was and he said...."Im going to be honest...it's called Actual Market Value...it's a mark-up because of the shortage!" I wish we didn't have to purchase a new one but mamma needed a ride...at least insurance payout was half the new van...

 

Tax or resale depreciation? Accountants should know tax code not really used auto values.

 

Personally, I won't pay over MSRP (I didn't for my 22 Platinum). I think the mark ups will help the resale, if the mark ups stick around, how could they not help? If the supply catches up with the demand, the mark ups will go away; those who paid over MSRP will never get their money out of the truck.

 

Accounting depreciation is different from real life or resale depreciation. Its a tax thing, this guy is describing what sounds like accelerated depreciation.

 

Your 21 is still worth the same as when it was new. The 21,000 is just so you don’t have to pay a huge amount in taxes for registration next year. Nothing to do with current value of your truck.

 

Sounds like your accountant is going to get a good deal

 

Only thing that is going to kill resale value are the idiots paying above MSRP

 

Hope you are joking..... you pay insurance to "replace" the vehicle not chip in for it. Insurance companies have been offering record low pay-outs as of late no matter what the price of comparable replacement vehicles. Always exercise your right to a third party appraisal and/or arbitration services.

 

He didn’t say what year it was. If it was a 1990 Honda Odyssey, then insurance isn’t going to buy him a brand new one. Looks like he wanted a new one, not an exact replacement.

 

I’ve talked to a couple dealers about markups over MSRP. Not that it helps but a small dealer near me explained that their allocations are 1/3 of what they normally get and the markups are somewhat to cover their fixed costs that don’t change even with reduced allotments to sell. My brother works for a boat dealer and same story - their allotment of Seadoos and other types of boats is way down but their costs are the same.

I still contend as long as people pay the markups the dealers will still have them. Same thing with housing prices going crazy… houses and cars are only worth what someone is willing to pay.

 

Question for y'all regarding this stuff.

Have a 2017 Chevy SS. Paid 38 for it in 2019 and it had 17K miles. Now has 36 and change. I am hearing 44 or so for trade in value.

On the fence about taking advantage of having made money in a used car (ABSURD)........and either selling it to take money and run, keeping it and giving it to a performance shop to safely get up to 650 HP, or taking advantage of the current used car market value on it and trading in on a new go fast car with factory installed and warrantied parts etc.....(looking at GT500 or Blackwings).

If you think Toyota markups are bad......these clowns at mid Atlantic Cadillac dealers are asking 20K in ADMs. However I am told dealers in VT will sell at MSRP.

Thoughts? Comments? Pros and Cons?

Thanks for any input.

 

If you sell you will just be another buyer in an overprice market. You made money just to spend more on the next one.

 

Wow that's some tax magic right there.
A standard 2021 SR5 resale value is 43-46 on KBB with a dealership trade in of 41k. Most values are 20% over KBB prices currently.
Did you purchase your Tundra through a business and using depreciation for tax purposes?

 

Buy Tundra from dealership at MSRP or a little over, sell back to different dealership who charges the biggest markup (say 20k) because that’s just the way things are now and it’s a deal for them. Profit! Rinse and repeat until you get a free truck

 

It was a 2016 Odyssey (mid trim) that we paid 33k new....68kmiles; we did get two separate appraisals and went with the highest one.....