Quote:
Originally Posted by SARAFIL
It seems like it’s in a point of transition, but it depends on the car.
High end luxury cars are starting to cool - people either a little scared to spend the money or strained on what they can afford with rising rates. There is also still a disconnect with dealers sitting on aged inventory that they bought 60-90-120 days ago at inflated prices and they are hesitant to take the loss, but if they had to cash out at auction they would take a blood bath. Fresh inventory does feel like it’s coming online at slightly lower prices. No longer seeing a lot of these cars listed at original MSRP for 2-3 year old models though like we saw earlier this year.
(Case in point, have been watching 2020 X5 prices since I paid off my lease earlier this year. Several comps for my car still listed at $70k+ but most have been on lot 60+ days and I’m not sure they will ultimately sell with a 7 in front at retail. I’ve also been tracking cash offer for my car and it’s been slowly dropping every month, but the bottom hasn’t fallen out either - still easily $10k+ above where my lease payoff would have been)
Cheaper cars, EVs, etc. still really strong - not seeing any signs that market has cooled yet.
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The market definitely appears to be softening. I keep an eye on 991.2 prices and X7s once in a while - seeing more "reduced price" tags on autotrader. Our 2021 X7 M50 was worth about $100K earlier this year with 18k miles on it. Probably only worth about $90K right now. As Josh notes, the lower end of the market is still nuts.