Is there anything strange about the used FL5 CTR market?

[lilDumpsterRat]

Can I get your opinions on whether there's anything unusual about the FL5 CTR used market right now?

I ask because as I check it all the time I notice that there seems to always be about 90-100 used FL5 CTR's nationwide, and yet the cars sell like hot cakes drizzled with cocaine at dealerships, sometimes with pretty extreme dealer markup..

So you have a car that gets gobbled up new real fast, but even with such a limited amount for sale new there's quite a few for sale used... That's the part that I think is strange that I have not seen with other cars. Because these are only 2022 and 2023's, yet there are so many for sale used in proportion to totals sold...I would figure there'd be less for sale as people hold on to their precious babies. Is this an example of over hype and people just in a frenzy to buy it, then selling it later because they couldn't afford it in the first place? or is it evidence that the market is about to cool down a lot, because there's 90+ for sale and they are all still asking above msrp. I 'm sorry it's so long and redundant, but I can't put my finger on it exactly, but it seems strange to me.

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[MrB]

In the UK, there are quite a few nearly new examples selling for under list price, and rumours dealers are struggling to shift new allocations.

 

[TDC50]

Very common for enthusiast cars. I remember within the first year of owning my Shelby GT350 there were 100’s for sale in the used market, typically at a price of a nearly new car. Same with the new GR86 and BRZ, very difficult to get a manual trans car from a dealer but a 100 or so in the used market.
Some people just need the itch scratched for the cool new thing and then move on. Many people have no regard for money, could be because they are flush with it or they just don’t worry about planning for retirement 30 years down the road.

 

[ABPDE5]

A lot of people stretch to buy these cars.

When you consider the ADMs that were tacked on early ones, current interest rates, and the financial health of the median individual, combined with current wage / compensation vs cost of living trends... I wouldn't be surprised if a lot of people got in over their heads.

Even if buying one of these w. ADM was personally feasible for a lot of people at the time, all it takes is one adverse life event, considering the economic climate, and the situation can turn dark quickly.

 

[Stanleywinthrop]

If anything the used market is even more overpriced than the new. Most folks seem to more willing to overpay for new than used, or be patient and diligent enough to find a new one at MSRP.

 

[Clark_Kent]

@TDC50 is right on. This is standard fare. People tend to hop in and out of performance cars. Poll members how many cars they've owned in their lifetime and quite a few will tell you 20+. Some individuals also got the opportunity to get in and out of the car at limited to no expense depending on when the car was purchased.

 

[atucker80]

@TDC50 is right on. This is stanfard fare. People tend to hop in and out of performance cars. Poll members how many cars they've owned in their lifetime and quite a few will tell you 20+. Some individuals also got the opportunity to get in and out of the car at limited to no expense depending on when the car was purchased.

This is me to the tee. I tend to buy 3-4 cars a year. In some years 5-6 cars. I get bored quick and sell them. Last year I bought the same car twice just in a different color. lol I keep telling my GF this is the one, but its always just the one for now.

 

[atucker80]

As long as you're not trading in and out of girlfriends...

She's definitely a keeper. When I told her I was buying a lift for the garage to add more parking space her only comment was that we should also do a polyaspartic floor to take it up a notch. I'm not letting her get away!

 

[lilDumpsterRat]

hahah! thank you I guess it is not that unusual then. just seems slightly higher inventory of used given the amount overall being sold, but it makes sense.

 

[TO_FL5_CW]

@TDC50 is right on. This is standard fare. People tend to hop in and out of performance cars. Poll members how many cars they've owned in their lifetime and quite a few will tell you 20+. Some individuals also got the opportunity to get in and out of the car at limited to no expense depending on when the car was purchased.

I had GRC Circuit edition for 6 weeks (new record out of 15 cars in last 20 years lol).

 

[optronix]

I don't see how people continue to get away with the "multiple cars a year" thing. If you're trading the cars in then you're just stuffing the dealers' pockets with margin. If you're not then you're paying tens of thousands of dollars in sales tax (some states would be both...). Either way is hilariously irresponsible, but whatevs, keep on keeping on.

I did it while I could over the past few years, and in some cases got more in trade value than I paid for the car, not even counting tax savings. At that time I told myself it made sense (it didn't). It all caught up to me though and I lost tens of thousands of dollars. I literally want to kick myself in the ass for that... and I at least didn't pay any ADM. I'd castrate myself if I paid a 5 figure ADM and then traded a car in at a loss below MSRP. I know there are folks out there who did this.

edit- as for where the market's heading, there are tons of variables factoring in that people much, much smarter than I can't make sense of enough to predict so I won't pretend to offer my own prediction, but I think we all should hope that the insanity stops very, very soon. It's actually surprising to me that prices didn't skyrocket for these cars year over year. This is why I'm not a "money guy"; if I was in charge of pricing at Honda I'd bump the price up to at least $60k. People are proving that's what they're willing to pay for it, why let the dealers take that money? Eventually this is going to become the reality, so if you think new car prices are crazy now, just wait a few more years. Unless people JUST STOP BUYING them for the crazy asking prices.

 

[chopsuey34]

I don't see how people continue to get away with the "multiple cars a year" thing. If you're trading the cars in then you're just stuffing the dealers' pockets with margin. If you're not then you're paying tens of thousands of dollars in sales tax (some states would be both...). Either way is hilariously irresponsible, but whatevs, keep on keeping on.

Even if car buyers sell the car for the price they bought at, the non-refundable transaction costs will bleed money out of their pockets, oh god. Sales tax, dealer fees, discretionary mods, insurance premiums to name a few. One could maximize yearly IRA contributions with those alone.

I guess if it floats their boat to sample the latest thing. Cheaper just to rent on Turo for 48 hours or something like that.

 

[TypeRD]

Some people buy model airplanes as a hobby. Some buy performance cars. When you make so much money that you don’t have to think about it, there’s no difference between these two hobbies. It’s not a sandbox I play in, but it’s not hard to understand when you know someone who does and you see their lifestyle.

 

[holland1]

There may be a couple hundred used for sale but I doubt any need to be sold. Classified section and FB is free, CL and cargurus is around 5 bucks to list. Mines been "for sale" for months. Ever since carmax/vroom have been paying crazy amounts there's really no way to buy a car at a great price. If someone needs a quick sale they just go get a no hassle transaction. I refuse to drive in to get a quote, they claim the type r is to rare to give you one over the net. I've been watching tundras and the pass few years carmax was paying top dollar but they are definitely coming down. Ex 2018 mint cummins w/ 66k miles seller asking 48k, original sticker was 55k so probably paid 45k back in 2018. Put that info into carmax and they'll give 27k today. A year or 2 ago probably mid 40s.

 

[tingli107]

I think it's a combination of impulse buys, fomo mentality, and unrealistic expectations. Then the high interest rates and realization that you may not be able to afford it. Finally the ability to dump it for relatively low loss depending on how much ADM you paid in the first place since most dealers are still offering top dollars, but then you lose on TTL unless you are trading it in for a new vehicle.

I'm sure the car dealers have no idea how to handle this current volatility in the market. I see cars listed for literally unbelievable prices and think it's still peak covid pricing. If your a dealership and your not selling cars your losing money after all except for a very few cars are a depreciating asset.

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