Overhaulin'

Lower car prices due to all the repossessions due to home foreclosures?

Did anyone see this report that there is a glut of used cars due to all the repossessions because no one can make car payments with their homes foreclosing? Does this mean you can negotiate lower prices with dealers or they don't care?

Public Comments

1. No I didn't hear that but if you find out any more info please let us know. I'll be glad to trade in my car for a new (to me) car
2. Well, if it's getting harder for them to sell cars, yes You can get a lower price.
3. That has to be a Location - Specific thing. I know we dont have ENOUGH used cars to sell right now....especially in the Lower Price ranges.... Too many folks with Income tax money buying every In-Expensive thing we get. Chris
4. Dealers only care about what they paid for the vehicle and what they can sell for at their establishment. With this information about repossessions, if its possible for dealers to buy vehicles cheaper at auctions, then this can lower the retail selling price due to the supply & demand of the vehicle. The economy is ever changing, and if cars become cheaper in general due to all the repo'd cars, then this discount would also apply for their cost. This happened after Sept 11th because the new cars sold for 0%, which significantly dropped the value of the used cars and had a domino effect for each model year. I hope this helps and it's only an opinion.
5. Well I think the main thing to focus on here is that it will change the values of used cars. So if a dealer pays less it will probably be worth less as well and therefore pricing will reflect this. If there is an influx of used cars into the market it will lower the values of used cars. When the values drop so does dealer pricing due to staying competitive etc. I do not think they do not care and I do not think it means you can get a car for a bigger percentage discount than normal because pricing will follow true value.
6. Depends on situation. Old 300 day unit they may sell at 3000 loss to get it out of their hair. New Murano's we have have lower MSRP from last year's model, that means LESS wiggle room now. It is making it harder for lower income brackets to get vehicles, I see it every day. With foreclosures and repo's they are not agressive lending money to people with spotty credit or repo's in the past.