How the hell is my 2016 car I bought in 2019 worth more than I paid for it?

CrimsonTider

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That's only true if you can afford the depreciation hit that typically comes with buying a new car.

the depreciation hit isn’t a factor if you doubt plan on selling the car

and every single thing you buy new loses value when it’s used

How come you don’t buy electronics used to avoid the depreciation hit?
 

CrimsonTider

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It really is wild right now.

My X5 50i MSport market value is about 5k over what I paid for it in Nov 2019, even with 35,000km more on it now lol. Have roughly 15K equity it in, but there's nothing to do. New cars are all MSRP + wait time. No one is playing ball because they know they can get the next person to pay list. It's different in Canada than the US as you can't sell above MSRP. But I noticed alot of dealers taking new cars here, putting 3,000km on them out the gate (non demo) sell it to a "customer" so that there is an owner on record, bring it back through the dealer and then mark it up since it's now used and you can mark it up to anything.

Trying to upgrade my wife's Escape and it's almost pointless getting into another used car. Although hers is benefitting from the market, these used cars at dealerships are not only adjusted for current market, but then marked up on top of that. So it's not even Apples to Apples like Real Estate. Used is such a gamble if the market corrects. Some people are going to take a serious bath on their vehicles and end up stupid upside down in a few years, beyond the usual. That negative equity rollover will not be pretty.

We have a 2022 R8 RWD incoming for July. I know I will be tempted to reflip, but I've waited too long to achieve this so will try to enjoy it. Already seen people selling theirs for 50k over MSRP after delivery. Basically same price as the AWD.
Negative equity rollover? What are you talking about
 
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