# USA Used Car Prices



## elelegido (Sep 24, 2014)

Here's a question - why are US used car prices so high? Example - kbb for a 2002 VW Jetta with 120k miles is around $3,000. In Europe, and the UK specifically, the same car would cost $1,000. A 2000 Infiniti G20 is worth around $2,500 in the States; its equivalent top of the line Nissan Primera would be worth around $800.

In Europe you can easily buy a decent 1990s car with plenty of life left in it for $500. You can't do that in the States. Any ideas why?


----------



## observer (Dec 11, 2014)

elelegido said:


> Here's a question - why are US used car prices so high? Example - kbb for a 2002 VW Jetta with 120k miles is around $3,000. In Europe, and the UK specifically, the same car would cost $1,000. A 2000 Infiniti G20 is worth around $2,500 in the States; its equivalent top of the line Nissan Primera would be worth around $800.
> 
> In Europe you can easily buy a decent 1990s car with plenty of life left in it for $500. You can't do that in the States. Any ideas why?


Europeans have more money so they buy new vehicles more often?


----------



## pengduck (Sep 26, 2014)

elelegido said:


> Here's a question - why are US used car prices so high? Example - kbb for a 2002 VW Jetta with 120k miles is around $3,000. In Europe, and the UK specifically, the same car would cost $1,000. A 2000 Infiniti G20 is worth around $2,500 in the States; its equivalent top of the line Nissan Primera would be worth around $800.
> 
> In Europe you can easily buy a decent 1990s car with plenty of life left in it for $500. You can't do that in the States. Any ideas why?


You can thank the current administration for that. The cash for clunkers program took out so many cars from the used car market. Supply and demand 101.


----------



## ReviTULize (Sep 29, 2014)

pengduck said:


> You can thank the current administration for that. The cash for clunkers program took out so many cars from the used car market. Supply and demand 101.


Used car surge!!


----------



## zandor (Mar 6, 2015)

pengduck said:


> You can thank the current administration for that. The cash for clunkers program took out so many cars from the used car market. Supply and demand 101.


That's a big part of it. The other part is there's also a shortage of not too old used cars from the years following the 2008 financial crisis. This chart pretty much explains it: http://www.macrotrends.net/chart/1372/auto-and-light-truck-sales-historical-chart


----------



## lu181 (Nov 3, 2014)

Cash for clunker cars went to the junkyard. Yes Obama haters it helped almost 700k old cars were removed from used car market but 700k new cars entered the market and by now they are back in the used market. There were still millions of used cars to choose from. It was a 3 billion dollar program to put into perspective the Govt has spent 1.5 Trillion dollars on the F-35 fighter jet that does not work.


----------



## Luberon (Nov 24, 2014)

My guess is maybe because in the US compact sedans (Corolla, civic, jetta, golf, focus etc) represent a smaller proportion of new car sales compared to Europe.


----------



## Long time Nyc cab driver (Dec 12, 2014)

lu181 said:


> Cash for clunker cars went to the junkyard. Yes Obama haters it helped almost 700k old cars were removed from used car market but 700k new cars entered the market and by now they are back in the used market. There were still millions of used cars to choose from. It was a 3 billion dollar program to put into perspective the Govt has spent 1.5 Trillion dollars on the F-35 fighter jet that does not work.


Cash for clunkers removed some great low mileage cars, plenty were nowhere near being clunkers.


----------



## Tx rides (Sep 15, 2014)

elelegido said:


> Here's a question - why are US used car prices so high? Example - kbb for a 2002 VW Jetta with 120k miles is around $3,000. In Europe, and the UK specifically, the same car would cost $1,000. A 2000 Infiniti G20 is worth around $2,500 in the States; its equivalent top of the line Nissan Primera would be worth around $800.
> 
> In Europe you can easily buy a decent 1990s car with plenty of life left in it for $500. You can't do that in the States. Any ideas why?


You have to compare more than the car price though. The living expenses are different there. You must consider utilities, food, housing, public transport, and other items which may be significantly higher.


----------



## lu181 (Nov 3, 2014)

The reality is because Americans will pay more we have a culture where its all about spending we pay more for everything food, clothing, rent, cars ,homes ect..... I was in the clothing industry for many years the same clothing with just slight differences was labeled for different department store at completely different prices so store sells shirt for 25.00 next store gets same shirt with a diff stitch color and has it for 50.00. Many times it would be same shirt or jeans just different name on the patch for double or triple the price. Unless you are buying a custom made item most of the time you just throwing money away on name brands.


----------



## Tx rides (Sep 15, 2014)

elelegido said:


> Here's a question - why are US used car prices so high? Example - kbb for a 2002 VW Jetta with 120k miles is around $3,000. In Europe, and the UK specifically, the same car would cost $1,000. A 2000 Infiniti G20 is worth around $2,500 in the States; its equivalent top of the line Nissan Primera would be worth around $800.
> 
> In Europe you can easily buy a decent 1990s car with plenty of life left in it for $500. You can't do that in the States. Any ideas why?


Check it out, E: http://www.numbeo.com/cost-of-livin...ountry1=United+States&country2=United+Kingdom


----------



## Long time Nyc cab driver (Dec 12, 2014)

Tx rides said:


> You have to compare more than the car price though. The living expenses are different there. You must consider utilities, food, housing, public transport, and other items which may be significantly higher.


I've seen used car prices also vary from region to region in the United States, Las Vegas seems to be pretty high. Texas is car country so if you were looking for a truck that would probably be the place to buy one.


----------



## lu181 (Nov 3, 2014)

Long time Nyc cab driver said:


> Cash for clunkers removed some great low mileage cars, plenty were now where near being clunkers.


If the cars were worth more than the 3000-4500 in the used market and were traded ito the program the people trading them in made a bad financial decision ( big part of the problem at the time in the first place ). They also got or at least were supposed to get the value of the car from the junker in addition to the govt credit. By now they would be clunkers and out of the market not being a factor to op question. Tx rides point is also valid


----------



## Tx rides (Sep 15, 2014)

Long time Nyc cab driver said:


> I've seen used car prices also vary from region to region in the United States, Las Vegas seems to be pretty high. Texas is car country so if you were looking for a truck that would probably be the place to buy one.


Not really, well not enough to justify the trip, it seems. We just have better highway miles on our urban assault SUVS because of our wide open highways


----------



## Long time Nyc cab driver (Dec 12, 2014)

lu181 said:


> If the cars were worth more than the 3000-4500 in the used market and were traded ito the program the people trading them in made a bad financial decision ( big part of the problem at the time in the first place ). They also got or at least were supposed to get the value of the car from the junker in addition to the govt credit. By now they would be clunkers and out of the market not being a factor to op question. Tx rides point is also valid


I'm just into older cars, if you look on Youtube they destroyed some really nice cars. Collector cars have different values, and some of those cars destroyed would be collectable now.


----------



## ReviTULize (Sep 29, 2014)

It's the same thing with old houses and downtown buildings in most cities when "sprawl" was big. In our city, we destroyed beautiful art deco buildings so that a church could have a parking lot one day a week


----------



## Long time Nyc cab driver (Dec 12, 2014)

ReviTULize said:


> It's the same thing with old houses and downtown buildings in most cities when "sprawl" was big. In our city, we destroyed beautiful art deco buildings so that a church could have a parking lot one day a week


Same thing in NYC, they tear down beautiful buildings, they wanted to tear down Grand Central Station, Jackie Kennedy had it saved.


----------



## observer (Dec 11, 2014)

Long time Nyc cab driver said:


> I've seen used car prices also vary from region to region in the United States, Las Vegas seems to be pretty high. Texas is car country so if you were looking for a truck that would probably be the place to buy one.


A lot of cars and trucks are exported to Mexico and Central America. I think Mexico recently stopped importing cars, but it's probably temporary. This would tend to raise prices close to the border. Hundreds of thousands of Toyota, Nissan, Ford, Chevrolet and Dodge trucks, were sent to Mexico.

El Salvador, Guatemala, Honduras imported many, many mini pick ups mostly Toyotas.

Las Vegas had a couple big auto auction companies, Manheims and another one whose name I can't quite remember right now. A lot of nice cars there again many going to Mexico. A lot of used engines and transmissions also were shipped to Mexico from Las Vegas.

Florida, woww, I still remember the "junk cars" there at the junkyards. Very nice cars. They exported a lot of parts to Venezuela,Colombia and South America. Cars were harder to export because basically, Florida is one big island attached in the north to the US.


----------



## observer (Dec 11, 2014)

Long time Nyc cab driver said:


> I'm just into older cars, if you look on Youtube they destroyed some really nice cars. Collector cars have different values, and some of those cars destroyed would be collectable now.


If I could only go back and save a fraction of the cars we scrapped. Camaros, Mustangs, Firebirds, VW vans and bugs, you name it we scrapped it. 

This however was pre cash for clunkers.


----------



## observer (Dec 11, 2014)

Long time Nyc cab driver said:


> Cash for clunkers removed some great low mileage cars, plenty were nowhere near being clunkers.


Another program that I think is still removing cars in California is the smog buyback program.


----------



## Long time Nyc cab driver (Dec 12, 2014)

observer said:


> If I could only go back and save a fraction of the cars we scrapped. Camaros, Mustangs, Firebirds, VW vans and bugs, you name it we scrapped it.
> 
> This however was pre cash for clunkers.


----------



## observer (Dec 11, 2014)

To give everyone a perspective on vehicle recycling in CA, in 2008 at LEAST 50,000 cars a month were being junked. Not including Norcal or Central California.

More than 50K cars per month in Los Angeles alone were scrapped monthly.


----------



## observer (Dec 11, 2014)

Long time Nyc cab driver said:


>


Those explorers deserved to be junked, bad transmisions, bad head gaskets. It was the SUV version of the Taurus and T bird just crap, I mean scrap.


----------



## Long time Nyc cab driver (Dec 12, 2014)

http://Cash For Clunkers- Volvo is TOUGH, 2000 S80 T6: [MEDIA=youtube]iD0Pv6yyGek[[/MEDIA] [QUOTE="observer, post: 216976, member: 6016"]Those explorers deserved to be junked, bad transmisions, bad head gaskets. It was the SUV version of the Taurus and T bird just crap, I mean scrap.[/QUOTE]
Bad example, lol, I was thinking the same thing. Plus they used to flip over. [MEDIA=youtube]iD0Pv6yyGek[/MEDIA]


----------



## observer (Dec 11, 2014)

Long time Nyc cab driver said:


> I'm just into older cars, if you look on Youtube they destroyed some really nice cars. Collector cars have different values, and some of those cars destroyed would be collectable now.


In 1992 one of every 10 import cars scrapped was a VW Beetle.


----------



## observer (Dec 11, 2014)

Long time Nyc cab driver said:


> http://Cash For Clunkers- Volvo is TOUGH, 2000 S80 T6: [MEDIA=youtube]iD0Pv6yyGek[[/MEDIA]
> Bad example, lol, I was thinking the same thing.[MEDIA=youtube]iD0Pv6yyGek[/MEDIA][/QUOTE]
> 
> I was wondering what that liquid was, it's to seize the engine. We pulled out a spark plug and poured sand into hole then ran engine till it seized.


----------



## observer (Dec 11, 2014)

Long time Nyc cab driver said:


> http://Cash For Clunkers- Volvo is TOUGH, 2000 S80 T6: [MEDIA=youtube]iD0Pv6yyGek[[/MEDIA]
> Bad example, lol, I was thinking the same thing. Plus they used to flip over. [MEDIA=youtube]iD0Pv6yyGek[/MEDIA][/QUOTE]
> 
> Yea, they were a little top heavy, but if I remember correctly, they had the bad Firestone tires that blew up at high speeds causing the rollovers.


----------



## Long time Nyc cab driver (Dec 12, 2014)

observer said:


> Yea, they were a little top heavy, but if I remember correctly, they had the bad Firestone tires that blew up at high speeds causing the rollovers.


You obviously have a lot of experience with cars, you said you repossessed cars.
I knew a guy in New York who did that.
He said people would pull a knife out, he would pull his knife out.
He said, okay, what are we gonna do now ??
I also knew a guy who stole cars, he said one time a guy came running out of his house in his underwear while he was stealing his car.


----------



## observer (Dec 11, 2014)

Long time Nyc cab driver said:


> You obviously have a lot of experience with cars, you said you repossessed cars.
> I knew a guy in New York who did that.
> He said people would pull a knife out, he would pull his knife out.
> He said, okay, what are we gonna do now ??
> I also knew a guy who stole cars, he said one time a guy came running out of his house in his underwear while he was stealing his car.


I spent 23 years in the auto dismantling business. Started as a single car tow truck driver, moved up to two car carrier, then four car carrier. Then developed a division for all rebuildable parts and sold good used parts to people from all over the world. After a few years went into management, then became general manager for Norcal. Company was bought by larger company and I was laid off.

My family also owned a towing business for about 14 years. Became unprofitable because of rising expenses and no way to increase rates, so we sold the trucks to drivers. We had to finance trucks for 2 drivers, but it was a win, win for everyone.

I actually only repoed for couple months, I never really liked taking peoples cars. Left a bad taste in my mouth.

Probably repoed about 50 cars. I never had a problem with anyone. I've always tried to develop the ability to defuse bad situations, a lot of people actually shook my hand and thanked me.


----------



## Long time Nyc cab driver (Dec 12, 2014)

observer said:


> My family also owned a towing business for about 14 years. Became unprofitable because of rising expenses and no way to increase rates, so we sold the trucks to drivers. We had to finance trucks for 2 drivers, but it was a win, win for everyone.


Wow, nobody can make money anymore . A long time ago in nyc, the first tow truck on the scene of an accident got the job, so they listened to a police scanner and raced like crazy to be the first one.
What they really wanted was the body shop work in addition to the tow. I always thought the tow business was decent, I guess I was wrong. Because like you say, the prices are regulated, any business where the prices are regulated is a problem. Taxis, Uber, trucking etc.


----------



## observer (Dec 11, 2014)

Long time Nyc cab driver said:


> Wow, nobody can make money anymore . A long time ago in nyc, the first tow truck on the scene of an accident got the job, so they listened to a police scanner and raced like crazy to be the first one.
> What they really wanted was the body shop work in addition to the tow. I always thought the tow business was decent, I guess I was wrong. Because like you say, the prices are regulated, any business where the prices are regulated is a problem. Taxis, Uber, trucking etc.


Yea, there were a couple names for those types of tow trucks, bandit trucks, ambulance chasers, etc. They outlawed this here in CA a long time ago because the tow trucks were themselves causing accidents by speeding to accidents.

It's very hard to get a new towing business going and be successful. Most of the successful ones have been around decades and have city contracts. In Los Angeles they are called OPGs, Official Police Garages. The vast majority of cities outsource the towing. Long Beach is the only one I can think of that has its own tow department.

My dad started the towing company with a one car sling truck in '93. About '97 he had a stroke and we took it over. Built it up to 3 three car carriers, every couple years upgrading to newer (newer to us) trucks. We ran if for 8 more years but expenses kept going up and income stayed stagnant. We managed to carry the tow business losses for 3 years with money from another investment we had that was income positive. Decided to stop throwing good money after bad and sold the trucks to the drivers.

We could have kept business going by cutting corners like a lot of our competitors (pay drivers cash, take cash jobs, call drivers independent contractors instead of employees, saving on SS, Unemployment, Workers Comp etc..). But it was never an option for us. Our dad always taught us to do things the right way. Pay your taxes. Pay your employees right. Pay your bills on time. Things will always work out best this way. You sleep better at night and good things will come to you.

I think that is what I dislike about Uber. They think they are above doing the right thing.


----------



## Long time Nyc cab driver (Dec 12, 2014)

observer said:


> In Los Angeles they are called OPGs, Official Police Garages. The vast majority of cities outsource the towing. Long Beach is the only one I can think of that has its own tow department.


That's what they have here, the Police department has its own tow trucks, the tlc, the parking violations bureau. 
To get a police towing contract in California they probably paid someone off years ago.
They have authorized tow for certain highways here, that go to private tow companies.

Sorry to hear about your father's stroke.

I guess you're father gave you good morals by running a business not cutting corners.

Uber is basically a semi criminal organization, skirting the law.


----------



## observer (Dec 11, 2014)

Long time Nyc cab driver said:


> That's what they have here, the Police department has its own tow trucks, the tlc, the parking violations bureau.
> To get a police towing contract in California they probably paid someone off years ago.
> They have authorized tow for certain highways here, that go to private tow companies.
> 
> ...


Yea, some have even been passed from father to son, but its gotten a little bit more open. Connections are lost as people in power move on.

Thank you, my dad was a great dad, he passed away last Christmas Eve. The picture in my avatar is him in mid 1970's.


----------



## evboy (Nov 12, 2014)

lu181 said:


> Cash for clunker cars went to the junkyard. Yes Obama haters it helped almost 700k old cars were removed from used car market but 700k new cars entered the market and by now they are back in the used market. There were still millions of used cars to choose from. It was a 3 billion dollar program to put into perspective the Govt has spent 1.5 Trillion dollars on the F-35 fighter jet that does not work.


where do u stupid liberals get your facts from? kwame kilpatrick, Marion Barry, Ray Nagin. The government never spent 1.5 trillion on some planes. we take in about 3 trillion in taxes and your hero dumbama borrows another trillion to make up his budget. If we spent 1.5 trillion that would be half the tax revenue for some planes. the program is estimated to cost 1.5 trillion over the next 55 years. cash for clunkers was a disaster like everything your dumb unqualified affirmative action president does.


----------



## lu181 (Nov 3, 2014)

evboy said:


> where do u stupid liberals get your facts from? kwame kilpatrick, Marion Barry, Ray Nagin. The government never spent 1.5 trillion on some planes. we take in about 3 trillion in taxes and your hero dumbama borrows another trillion to make up his budget. If we spent 1.5 trillion that would be half the tax revenue for some planes. the program is estimated to cost 1.5 trillion over the next 55 years. cash for clunkers was a disaster like everything your dumb unqualified affirmative action president does.


Such anger and hate in the tone of your comments cant you voice your opposition on facts and numbers alone. You choose to believe what you want facts are the cost over runs have been huge if it makes it more true for you even fox has published the cost of this one plane to be 1.1 trillion and of course that is only an estimate show me a govt program that has come in below estimates. You assume I support Obama because I agree with one thing no I take issues and educate myself and form an opinion of my own. By the way he is our president. Can you tell me what other presidents were not yours?. Or is this the first you have not recognized? Hmmm???


----------

