Auction paperwork???

[Alexquade]

My main concern is resale in years coming when we decide to trade it in. It’s worth $21k with a clean carfax right now, and with the accidents it’s only worth $13k. We still owe $33k with the upside down, and then $10k in interest brings it up to $48k total. So we were gonna trade it in on a lease so in 3 years when we’re done with the lease, we won’t be upside down any more and will be able to get something else.

 

[2011SSVHOE]

Unless you have a business, there is no economic benefit to a lease. Pay down the 48k and learn from your mistake. don't get upside down again. sorry to be so blunt

 

[Alexquade]

That’s what we’ll end up doing. Just worried about the resale in the long run.

 

[Hi-psi]

I know that this is a bit of a thread spin-off, but here pretty soon the resale value on anything used (clean CarFax or not) is going to nose dive. We've been heading towards a used car market crash like the real estate one years ago for a while now, and it's very close to happening, if not already.

Lenders for the last several years have been doing the exact same thing they did to create the real estate crash by doing tons of sub-prime loans. You can even get a 96 month loan on a car now. That's insane.

I read recently where there are over 7 million people in the US who are currently 90 days or more past due on their auto loans.

So, soon you're going to have a massive influx of 1-4 year old used vehicles to the market from all the repos, which is going to tank the values of everything. Exactly what happened with the housing market.

There's going to be so many cheap 1-4 year old vehicles on the market, it's going to then also be hard to sell anything 5+ years old for any kind of decent money.

We're headed towards a used car market that will be great for buyers but suck for sellers for a while. The market will correct/recover, just like it has with the housing market, but it will take a few years.

 

[tsuintx]

Never understood this whole being upside down 2x on something, but what ever. About the CarFax thing, though...

Unfortunately there’s nothing you can do about it. I had sort of similar thing happen with an 03 Silverado about 8-9 years ago.

Bought it with the knowledge that the PO had his insurance company replace front bumper and grill about 3 years before I bought it due to running over some crap on the highway. He showed me pics and gave me the repair receipts etc.

CF was clean when I bought it. When put it on the market about 3 years after I bought it, an accident had been reported.

CF started reporting it a year after I bought it, didn’t have any details what happened and why and basically said I had to provide them with details, proof etc. if I wanted to file any dispute. So yeah, I pretty much said screw it and left it there.

 

[Alexquade]

Oh wow! I know values plummet on any vehicle after you get it. We had a 16 Sonata that MSRP’d for 27k 6 months prior and they could only give us 17k for it. I understand that all too well and how some vehicles will maintain their value for longer.

That’s what I was figuring that nothing can be done. I was just seeing if there was something I could do as I know I’m not the only one this has happened too. I appreciate everyone’s help!! Thanks!!!

 

[swathdiver]

We've been heading towards a used car market crash like the real estate one years ago for a while now, and it's very close to happening, if not already.

Last year it was difficult to find Duramax Classics to buy and when you found them they were in the high $20s and low $30s. Now, there's quite a few selling for about half of that. I listed my buddies the other day for $23k OBO and have yet to get a single response to the ad.

I have several family members who lease. Most are all hat, no cattle. The wealthier ones buy new or used and keep them for a long time. We do the same.

 

[Alexquade]

We don’t typically keep our vehicles for extended periods so I think a lease would be a better option, but my partner wants an Audi A4, and idk if we should lease it and keep getting another every three years, or buy one and make him keep it for a good couple years before getting another. That’s what we were going to do with this lease, pay on it for three years then we don’t be upside down when we go to get another vehicle.

 

[2011SSVHOE]

Just don't do what a guy and his wife I worked with did 2 times.

Lease a car for three years and then turn around after the lease, and purchase it and finance it for 4 more years.
They leased it because the payment was less. How about buying a car you can afford?

But guess what, He's still working and I'm retired. Sucks to be him.

 

[Alexquade]

Right. That wasn’t the plan honestly. We planned on leasing and getting out of being upside down then getting something else. It’s not that we can’t afford it, we just don’t want to be upside down. We had a 2016 sonata limited that I was driving and I took my partners truck and traded it in for my 11 Yukon and he didn’t fully care for the sonata so we traded it for this. And now he wants to get out the race scene and into “luxurious” so we were trying for an Audi A4 and found out that it’s been wrecked and isn’t worth nearly as much as it was before.