Discontinued car brands hold value in used car market

July 25, 2010 by mycarlady

MyCarlady was recently quoted in an article in SFGATE.com written by Michael Sanibel for Investorpedia, regarding the concern surrounding purchasing a discontinued or “dead” car brand. Discontinued car brands are holding value in used car market today follow-up this with the latest used car values in the marketplace under $10,000.00

The opriginal article came on the heals of the announcement Saturn, Pontiac, Hummer (all GM products) Durango, Aspen and PT Cruiser (all Chrysler/Dodge models) and others were scheduled to leave the US market.

The follow-up to this discussion of whether these discontinued cars were a good purchase idea became a debate most dealers would question from the “resale” value and the concern of the consumer regarding parts availability over the next 5-10 years. My observation was that most of the GM products used interchangeable parts, making this less of a concern than a SUZUKI (rumored to be pulling out gradually) who has no other shared manufacturing with US models.

Along the way used car prices have gone up steadily this year and the winners among the discontinued models are:

Saturn VUE, AURA and ION and the Hummer H2. Consumers are snapping these up at ABOVE average prices regardless of the “dead” trend.
Not so for the Pontiac brand, where G6 and G8’s are off-price by as much as 40% .
Used Chrysler Aspen, Jeep Commander and Dodge Durango’s are off 30%, as much a result of the history of bearing and axle issues (all these cars share the same assembly) than the mediocre demand for larger suv’s with poor fuel economy.
The PT Cruiser is still a solid used car deal, where a recent 2001 Limited (leather, moonroof) with 81k miles was offered for $4995.00 PT prices aren’t off-price in the market for used cars under $10,000.00 because they are coming of age and the sheer quantity of available PT Cruiser inventory is keeping prices a bargain regardless of the “discontinued” label.
Saab is off as much as 50% in many parts of the country, known for expensive repairs and limited service centers.
Volvo and Suzuki have been the subject of “graveyard” status for awhile, making their sales subject to severe scrutiny even though the cars are pretty reliable.
The Mercury line will suffer the same fate as Oldsmobile, more from the lack of resale to an aging demographic, parts are interchangeable with other Ford products so if you like the Grand Marquis or Mariner, don’t be shy, they’re prices are down about 20%, except for the GM LIMITED a steal at 5% off the market as these are still in demand in the used market.

If you are looking for one of these “StealsonWheels” check out my youtube website for videos and cars under $10000.00 : www.youtube.com/stealsonwheels

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If you need any other car buying, selling, trading or financing assistance on any new or used vehicle, please do not hesitate to email me at sarahlee@mycarlady.com or give me a call; 702-521-7546 I’m here to help you with any of your automotive needs and advice is free. Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at CAR DEALS

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Dealers Close-outs save thousands

June 6, 2009 by My Carlady

CAR BUYERS HOT on AUTO SALES.

AS Americans we like to BUY stuff. SO in the midst of the greatest economic crisis of the past fifty years, we are tired of being tired. We are also tired of driving cars that continually breakdown, have to share or no longer fit our needs/lifestyle.

Welcome to summer selling season in the auto industry. If it was ever time in the last two years, it’s a great time to go car shopping. Pent-up demand is driving car customers to dealerships hoping for half-price Jeeps and deep-deep discounts. You may also want to RE-consider buying a soon to be discontinued make or model: SATURN, SAAB, HUMMER, PONTIAC and some Chrysler, Jeep and Dodge models; Chrysler Aspen and PT Cruiser, Dodge Durango and Stratus, Jeep Commander.

However, BUYER BEWARE. The car market has changed and you need to be prepared for some surprises.

Salesmen/women. The salesmen still stand outside, but there are far fewer of them. That may work well for browsers, but those ready to make a deal are going to find less product knowledge and willingness to trot around on long test drives.

Less Inventory. The dealers have pared their inventories to all time lows, so be prepared to be flexible, to get a better deal now, or wait 10-12 weeks when ordering a car to meet your specs. SOme HOT models are selling for higher prices now, than they were in January. During model year change over, you can also expect to pay more for the new year model, as the first ones delivered are usually the most in demand=higher price.

Financing. Perhaps the hardest thing to understand about auto financing is the higher the score doesn’t guarantee you an immediate approval or the best rate. Cash down, over and above rebates, are considered in the loan application, along with trade-in values and how many other cars notes you have signed for. The auto banks are looking hard at car loans vs. debt and income. While mom and dad make great co-signers, if sister and brother have already tapped them, the next in line may need to ask another relative.

TRADE-IN. When trading a vehicle with a payoff, you may be better off to make the payoff yourself, to be assured the closing dealership will, in fact, pay off the existing lease or loan. As dealerships are burdened with closing, employees are let go, and title payoffs can slip through the cracks. Having your trade paid off before the next payment is due, is crucial to keeping your credit in good shape.

Incentives. You can have rebates or low interest rates but not both. Don’t expect to buy a car for half-off sticker. The biggest discounts I’ve seen are $6,000 off a $40,000.00 car. Multiple rebates for everything from loyal clients to military and first-time buyers often cannot be layered, so pick the highest reward for your car, in real time. By REAL TIME, I mean NOW. If you take a lower interest rate and payoff the car early, trade-it or it gets stolen/totaled, you have lost the full value of the interest saved. Sometimes cash in your deal as down payment, is the better deal because you have lowered the amount borrowed, and should a better rate be offered by another bank, you can move the loan. Note, low interest rate incentives do not allow for negative equity from a trade-in.

If you are really interested in buying a new car this summer, look to a broker or car buyer’s agent to get the bottom line before you start kicking tires. They can help you figure out the REAL price on the BEST DEAL and find you the car you want, saving you hours of hassle, and aggravation driving from dealer to dealer. The fee you pay a broker or buyers agent more than pays for itself in time and savings you would not realize on your best day of negotiating.

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702.521.7546

Discontinued car brands hold value in used car market

The opriginal article came on the heals of the announcement Saturn, Pontiac, Hummer (all GM products) Durango, Aspen and PT Cruiser (all Chrysler/Dodge models) and others were scheduled to leave the US market.

Along the way used car prices have gone up steadily this year and the winners among the discontinued models are:

Saturn VUE, AURA and ION and the Hummer H2. Consumers are snapping these up at ABOVE average prices regardless of the “dead” trend.

Not so for the Pontiac brand, where G6 and G8’s are off-price by as much as 40% .

Used Chrysler Aspen, Jeep Commander and Dodge Durango’s are off 30%, as much a result of the history of bearing and axle issues (all these cars share the same assembly) than the mediocre demand for larger suv’s with poor fuel economy.

Saab is off as much as 50% in many parts of the country, known for expensive repairs and limited service centers.

Volvo and Suzuki have been the subject of “graveyard” status for awhile, making their sales subject to severe scrutiny even though the cars are pretty reliable.

If you are looking for one of these “StealsonWheels” check out my youtube website for videos and cars under $10000.00 : www.youtube.com/stealsonwheels

Dealers Close-outs save thousands

CAR BUYERS HOT on AUTO SALES.

However, BUYER BEWARE. The car market has changed and you need to be prepared for some surprises.

Salesmen/women. The salesmen still stand outside, but there are far fewer of them. That may work well for browsers, but those ready to make a deal are going to find less product knowledge and willingness to trot around on long test drives.

———————————————————————————————

More From MyCarlady^®

Available Cars

Download Free MyCarlady Podcasts:

702.521.7546

Discontinued car brands hold value in used car market

The opriginal article came on the heals of the announcement Saturn, Pontiac, Hummer (all GM products) Durango, Aspen and PT Cruiser (all Chrysler/Dodge models) and others were scheduled to leave the US market.

Along the way used car prices have gone up steadily this year and the winners among the discontinued models are:

Saturn VUE, AURA and ION and the Hummer H2. Consumers are snapping these up at ABOVE average prices regardless of the “dead” trend.

Not so for the Pontiac brand, where G6 and G8’s are off-price by as much as 40% .

Used Chrysler Aspen, Jeep Commander and Dodge Durango’s are off 30%, as much a result of the history of bearing and axle issues (all these cars share the same assembly) than the mediocre demand for larger suv’s with poor fuel economy.

Saab is off as much as 50% in many parts of the country, known for expensive repairs and limited service centers.

Volvo and Suzuki have been the subject of “graveyard” status for awhile, making their sales subject to severe scrutiny even though the cars are pretty reliable.

If you are looking for one of these “StealsonWheels” check out my youtube website for videos and cars under $10000.00 : www.youtube.com/stealsonwheels

Dealers Close-outs save thousands

CAR BUYERS HOT on AUTO SALES.

However, BUYER BEWARE. The car market has changed and you need to be prepared for some surprises.

Salesmen/women. The salesmen still stand outside, but there are far fewer of them. That may work well for browsers, but those ready to make a deal are going to find less product knowledge and willingness to trot around on long test drives.

———————————————————————————————

More From MyCarlady®

Available Cars

Download Free MyCarlady Podcasts:

More From MyCarlady^®