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Flipping new cars… like houses?

Chapap

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I just got back from the Toyota dealer. A month ago they were taking orders. Now they’re not even taking contact info. They have a list of a couple dozen folks with deposits that they run the new allocations through, and if one makes it all the way through, you better hope you call within a couple hours to snag it.

At this very moment they have a base model. I want a 360 camera, but it’ll be very many moons till a lower end truck gets one. I figure I can get this one and trade it for one I want if it comes in and break even.

I imagine trying to flip trucks will get you burned. But it’s sure an attractive idea.
 


RonD

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Flipping it for a profit depends on how you buy it
If you are financing it check if there is a buy out penalty and of course the cost of the "paper work" to do the deal

Many buyers may be leery of paying more than "new price" vs waiting, they would be more likely to pay less for same vehicle but 1 or 2 years old, even though its a slightly higher price than a few years ago because of the lack of new vehicles available

I don't think that there are alot of buyers that are "desperate" for a new car/truck, they may be disappointed but not desperate, so if they "needed" another vehicle they would shop for a used one to use "for now" and wait until supply inventory made new vehicles a better deal

So yes you could end up having to keep the new vehicle for awhile, I don't consider that "burned"

My personal view is that there will be good deals on new vehicle in 2 years maybe less, there are literally thousands of new vehicle assembled and just sitting, waiting for the electronics to be available and installed
 

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IMO the car market still hadn't recovered from the late 00 recession and it will take a great while for the current wrinkle to work out.
 

Chapap

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IMO the car market still hadn't recovered from the late 00 recession and it will take a great while for the current wrinkle to work out.
I’ve heard that before. I wonder how true it is. I find it hard to believe that they’d be pumping out cars if there’s a line ahead of them that aren’t finished.
 

85_Ranger4x4

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I’ve heard that before. I wonder how true it is. I find it hard to believe that they’d be pumping out cars if there’s a line ahead of them that aren’t finished.
Buying used has been kinda hokey for years.

For anything with under 50k miles you might as well pay $5k more, get better financing and buy new.
 

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IMO the car market still hadn't recovered from the late 00 recession and it will take a great while for the current wrinkle to work out.
It recovered. What you are seeing is shift in marketing. No more cheap pickups and small cars with reasonable fuel economy. Everything is upsized and no more base models without power locks and flashy displays. Auto manufacturers make more money when they sell vehicles loaded with features.
 

85_Ranger4x4

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It recovered. What you are seeing is shift in marketing. No more cheap pickups and small cars with reasonable fuel economy. Everything is upsized and no more base models without power locks and flashy displays. Auto manufacturers make more money when they sell vehicles loaded with features.
No

I never cared for base models in the first place.

An XL has all I really need (and until yesterday was comparable to my 20yo daily driver XLT) Power windows, locks, mirrors, A/C, cruise etc, bring it on. I have never looked at a truck that didn't have all that aside from my '85 (which I have retrofitted a fair amount too)

And even if there is a marketing shift or whatever, it would even out because within a short period of time used would have pretty much the same frills as new. Even before the pandemic used wasn't much cheaper than new.
 

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The market for both new and used vehicles has changed dramatically in the past 2 years. I spoke with a lady last week who had a 2020 Escape lease for $300/mo but it got wrecked so she was looking to replace it. The replacement Escape was going to be over $700/mo for the same equipment and the same miles/term. There are people who bought new vehicles 2 years ago who are able to sell them for more than they paid for them. In some cases 2-3 year old vehicles are selling for more than the original sticker price. However, someone who buys a new vehicle in today's market has a zero percent chance of selling it for more in two years, because most vehicles are selling over msrp now and that bubble will have worked its way out in a couple years - either due to the supply chain being fixed or the economy tanking so demand drops way down or some combination of those two things.
 

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The market for both new and used vehicles has changed dramatically in the past 2 years. I spoke with a lady last week who had a 2020 Escape lease for $300/mo but it got wrecked so she was looking to replace it. The replacement Escape was going to be over $700/mo for the same equipment and the same miles/term. There are people who bought new vehicles 2 years ago who are able to sell them for more than they paid for them. In some cases 2-3 year old vehicles are selling for more than the original sticker price. However, someone who buys a new vehicle in today's market has a zero percent chance of selling it for more in two years, because most vehicles are selling over msrp now and that bubble will have worked its way out in a couple years - either due to the supply chain being fixed or the economy tanking so demand drops way down or some combination of those two things.
My 2020 F150 with just under 20K miles is worth more than I paid for it 2 years ago. I do get the Ford Z plan price.
 

Chapap

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The market for both new and used vehicles has changed dramatically in the past 2 years. I spoke with a lady last week who had a 2020 Escape lease for $300/mo but it got wrecked so she was looking to replace it. The replacement Escape was going to be over $700/mo for the same equipment and the same miles/term. There are people who bought new vehicles 2 years ago who are able to sell them for more than they paid for them. In some cases 2-3 year old vehicles are selling for more than the original sticker price. However, someone who buys a new vehicle in today's market has a zero percent chance of selling it for more in two years, because most vehicles are selling over msrp now and that bubble will have worked its way out in a couple years - either due to the supply chain being fixed or the economy tanking so demand drops way down or some combination of those two things.
Ive cashed in a couple vehicles. Didn’t make money but they ended up only costing me about a grand a year to own. There’s definitely a bubble that’s going to pop.
 

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FYI the key to "flipping" anything is you make your money when you BUY, not SALE. meaning that you have to purchase it for the right price to sell at a profit, after you've paid for repairs and services to get the car SOLD. What's happening with the car market right now isn't really "flipping", but more of a "supply & Demand" and there are people with the means to buy a car/truck at a price "they" can afford and then resale it to someone else who has more means, but not resources as the "flipper".
 

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i got lucky and got a 54k truck for 32k since it was two years old with 29k miles, two years ago. i could have traded it in for a new one but why would i trade a truck that i got such a good price on and my payment is 499? so i can get stuck in a payment of 800 for the same truck, just with some more cameras and sensors? no way, jose. i am just keeping mine
 

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Same thing with the housing market.
Yeah, I could sell my house for twice what it’s worth, but then I would have to buy another house for twice what that’s worth. Then be under water in a few years when the market crashes.

Or rent a house for 4x my current mortgage.
 

Chapap

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So the answer is yes, but get something you’d be happy with if the market crashes and you’re stuck with it.
 

dvdswan

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The key is waiting for the vehicle you want. Then sell it a year or more later.

Wholesalers, buy at auctions then turn around and sell the vehicle with doing only a safety check. Fixing nothing, then selling it at the going price.

Today's prices, like houses, is a seller's market. It will change but not until the "computer chip shortage" get figured out. I would guess another 2 or 3 years for new vehicles to even think about packing dealer lots like they did 2 years ago.
 

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