Car values dropping
Instructor
Joined: Nov 2021
Posts: 154
Likes: 72
I'm trying to figure this market out, and not liking the signals. I got a notification this morning of 4 cars similar to my 2012 911S just listed by Carvana, at $72k (2012 911 base), $74k (2014 911 base), $75K (2012 911S) and $76k (2012 911 base). I'm asking $78k, and the car has a ton of upgrades.
I figured I might investigate selling to Carvana. They offered $38,000 for my 2012.. Yeah, Carvana is losing money hand over fist, but is this how they expect to cover the gap? Who's gonna take that offer, and, really, wholesale is only 50% of retail?
The other conundrum I've learned is that ±90% of the Porsche buyers don't want upgrades, and are put off by them, no matter the quality or purpose of the upgrade. A dealer friend of mine in Northern California even told me they wholesale "upgraded" cars as not being with the trouble. In other words, the market says you don't get any of your money back on upgrades.
Where's my 10% audience??!!
I figured I might investigate selling to Carvana. They offered $38,000 for my 2012.. Yeah, Carvana is losing money hand over fist, but is this how they expect to cover the gap? Who's gonna take that offer, and, really, wholesale is only 50% of retail?
The other conundrum I've learned is that ±90% of the Porsche buyers don't want upgrades, and are put off by them, no matter the quality or purpose of the upgrade. A dealer friend of mine in Northern California even told me they wholesale "upgraded" cars as not being with the trouble. In other words, the market says you don't get any of your money back on upgrades.
Where's my 10% audience??!!
Instructor
Joined: Nov 2021
Posts: 154
Likes: 72
Check out this one that recently sold two days ago. Seems overpriced for 68k miles
https://bringatrailer.com/listing/20...-4s-cabriolet/
So it's hard to gauge the market from these results
https://bringatrailer.com/listing/20...-4s-cabriolet/
So it's hard to gauge the market from these results
Instructor
Joined: Dec 2011
Posts: 161
Likes: 102
From: Eugene, OR
The other conundrum I've learned is that ±90% of the Porsche buyers don't want upgrades, and are put off by them, no matter the quality or purpose of the upgrade. A dealer friend of mine in Northern California even told me they wholesale "upgraded" cars as not being with the trouble. In other words, the market says you don't get any of your money back on upgrades.
Where's my 10% audience??!!
Where's my 10% audience??!!
Pro
Joined: Sep 2020
Posts: 581
Likes: 388
From: Chicago Burbs
Nothing new or exclusive to Porsche in this. Modified cars appeal to a small subset of buyers - very small, really. Most people who are planning to upgrade their future car want to do it themselves, not buy someone else's vision of what is good. The small audience who might buy a previously upgraded car are those who aren't willing or able to do the upgrades themselves, and agree with EVERYTHING that the seller has done to it. It's a small market. Probably much smaller than 10%. Low single digits, I'd guess.
Most folks won’t even consider a substantially mod’d car even at a great/much lower price (not talking clear side markers here). They will pay significantly more for a stock unit. I’m in this group
Last edited by Levy; Jun 26, 2022 at 12:20 AM. Reason: Typo
Race Car
Joined: Aug 2004
Posts: 4,059
Likes: 218
From: SF, CA
Rennlist Member
Joined: May 2020
Posts: 434
Likes: 198
From: Phoenix, AZ
Levy posted: "Most folks won’t even consider a substantially mod’d car even at a great/much lower price (not talking clear side markers here). They will pay significantly more for a stock unit. I’m in this group"
Well, you're not alone in the 90%, heheh.
Well, you're not alone in the 90%, heheh.
Drifting
Joined: Jan 2015
Posts: 2,044
Likes: 1,923
From: Pasadena, CA
Stuff that touches emissions equipment instantly makes the pool of prospective buyers shrink. You now have to find someone who lives in a state with lax emission laws and is willing to have modified emissions equipment. In general, when you have a smaller pool of buyers you’ll have a more difficult time finding a buyer at the price you want.
Three Wheelin'
Joined: Jun 2009
Posts: 1,268
Likes: 484
From: Sin City
Stuff that touches emissions equipment instantly makes the pool of prospective buyers shrink. You now have to find someone who lives in a state with lax emission laws and is willing to have modified emissions equipment. In general, when you have a smaller pool of buyers you’ll have a more difficult time finding a buyer at the price you want.
Pro
Joined: Sep 2020
Posts: 581
Likes: 388
From: Chicago Burbs
Racer
Joined: Dec 2011
Posts: 394
Likes: 194
From: Denver
Rennlist Member
Joined: Jan 2006
Posts: 78
Likes: 11
From: Sarasota,FL
In my humble opinion. If you have the stock parts by all means put them back on and sell the aftermarket goodies here or on any number of other platforms.
This is usually a double win. Your car actually sells for the right price. And you recover some of the cost for the aftermarket goodies.
Also, if you are in a rush to wholesale or trade in your car, stock is always better. All dealers will exploit you and your pocketbook. Period
That is if you let them.
Good luck!
This is usually a double win. Your car actually sells for the right price. And you recover some of the cost for the aftermarket goodies.
Also, if you are in a rush to wholesale or trade in your car, stock is always better. All dealers will exploit you and your pocketbook. Period
That is if you let them.
Good luck!