High-mileage trade-ins clogging used car lots
08-01-2012, 09:45 AM
#1
AZ Community Team
Thread Starter
High-mileage trade-ins clogging used car lots
http://bottomline.nbcnews.com/_news/...-car-lots?lite
By Paul A. Eisenstein, TheDetroitBureau
American motorists are waiting longer than ever to trade in their cars, trucks and crossovers — with 10 years and 150,000 miles becoming the new norm, rather than the exception, according to a pair of new reports.
In the golden era of planned obsolescence, it became common for American new car buyers to trade in as often as every two to three years. Perhaps that was no surprise when quality and reliability were secondary to styling and automotive one-upsmanship. But as quality and reliability become essential requirements for automakers, consumers can feel comfortable that a car will last longer — something that has become a requirement as prices rise and the economy falters, analysts suggest.
Nearly eight in 10 owners will now hold onto their vehicle for a decade or longer before trading in, according to a survey by AutoMD.com. Meanwhile, a Black Book survey finds that the majority of owners will not trade in until their vehicles have at least 125,00 to 150,000 miles on the odometer — with 200,000-mile trade-ins being anything but rare these days.
“There is nothing surprising about the economy driving car owners to hold onto their vehicles for longer. Our data has been showing this trend for the past three years, but what is most compelling is that longer ownership has become an embedded habit for car owners, regardless of what the economy does,” said Brian Hafer, vice president of marketing at AutoMD.com.
The survey of 4,000 vehicle owners by AutoMD found that:
Where motorists of the past knew that their vehicles were reaching a ripe old age at 100,000 miles, today’s consumers just see that figure as a milestone to show friends.
AutoMD’s data show 60 percent of primary vehicles now have more than 100,000 miles on them. And the Black Book study adds that the majority of vehicles won’t be traded in until they clock between 125,000 and 150,000 miles, with some owners hanging on until the odometer clicks over again at 200,000.
“Americans are holding onto their cars longer today, and this aged vehicle is what’s being traded in as we’ve seen a rise in new-car sales activity,” said Ricky Beggs, an analyst at Black Book.”
The shift in consumer attitudes is obvious. While manufacturers have been putting a renewed focus on emotional design, consumers say that’s great but they won’t give up quality and functionality for looks. The AutoMD study found 52 percent of motorists saying their next vehicle purchase will primarily be influenced by practicality. Only 21 percent said they will be more influenced by styling.
Asked why they’re holding onto their vehicles longer, 47 percent of AutoMD respondents listed a weak economy. The survey, which allowed motorists to list more than one answer, saw 44 percent check off the fact that they’ve been more vigilant about service and repairs; 37 percent cited the desire to save money; 28 percent mentioned they were doing their own repairs to keep the old jalopy running; and 19 percent noted that today’s cars simply last longer.
By Paul A. Eisenstein, TheDetroitBureau
American motorists are waiting longer than ever to trade in their cars, trucks and crossovers — with 10 years and 150,000 miles becoming the new norm, rather than the exception, according to a pair of new reports.
In the golden era of planned obsolescence, it became common for American new car buyers to trade in as often as every two to three years. Perhaps that was no surprise when quality and reliability were secondary to styling and automotive one-upsmanship. But as quality and reliability become essential requirements for automakers, consumers can feel comfortable that a car will last longer — something that has become a requirement as prices rise and the economy falters, analysts suggest.
Nearly eight in 10 owners will now hold onto their vehicle for a decade or longer before trading in, according to a survey by AutoMD.com. Meanwhile, a Black Book survey finds that the majority of owners will not trade in until their vehicles have at least 125,00 to 150,000 miles on the odometer — with 200,000-mile trade-ins being anything but rare these days.
“There is nothing surprising about the economy driving car owners to hold onto their vehicles for longer. Our data has been showing this trend for the past three years, but what is most compelling is that longer ownership has become an embedded habit for car owners, regardless of what the economy does,” said Brian Hafer, vice president of marketing at AutoMD.com.
The survey of 4,000 vehicle owners by AutoMD found that:
- 78 percent plan to keep their current vehicle until it’s more than 10 years old
- 15 percent expect to trade it in when it's 8 to 10 years old
- 4 percent will trade it in when it's between 6 and 7 years old
- 3 percent expect to trade it in when it's between between 3 and 5 years old
Where motorists of the past knew that their vehicles were reaching a ripe old age at 100,000 miles, today’s consumers just see that figure as a milestone to show friends.
AutoMD’s data show 60 percent of primary vehicles now have more than 100,000 miles on them. And the Black Book study adds that the majority of vehicles won’t be traded in until they clock between 125,000 and 150,000 miles, with some owners hanging on until the odometer clicks over again at 200,000.
“Americans are holding onto their cars longer today, and this aged vehicle is what’s being traded in as we’ve seen a rise in new-car sales activity,” said Ricky Beggs, an analyst at Black Book.”
The shift in consumer attitudes is obvious. While manufacturers have been putting a renewed focus on emotional design, consumers say that’s great but they won’t give up quality and functionality for looks. The AutoMD study found 52 percent of motorists saying their next vehicle purchase will primarily be influenced by practicality. Only 21 percent said they will be more influenced by styling.
Asked why they’re holding onto their vehicles longer, 47 percent of AutoMD respondents listed a weak economy. The survey, which allowed motorists to list more than one answer, saw 44 percent check off the fact that they’ve been more vigilant about service and repairs; 37 percent cited the desire to save money; 28 percent mentioned they were doing their own repairs to keep the old jalopy running; and 19 percent noted that today’s cars simply last longer.
08-01-2012, 10:17 AM
#2
אני עומד עם ישראל
For decades the industry wanted us to get new cars every 2-3 years, putting us in perpetual debt. At the expense of the economy lol, I think Americans are saving more, paying down debt, and hanging on to their vehicles until they actually "need" it.
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08-01-2012, 03:11 PM
#3
Chapter Leader (Southern Region)
08-01-2012, 09:21 PM
#6
HE>i
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^this! My 99 TL (daily driver) has 193K miles, and my 05 TL has 46K miles.
The wifey has a 02 camry (daily) w/ 194K miles, and 06 SRX (the vacation vehicle) with 130K miles.
we dont plan on purchasing anymore cars for a while, unless it a "DEAL"!
The wifey has a 02 camry (daily) w/ 194K miles, and 06 SRX (the vacation vehicle) with 130K miles.
we dont plan on purchasing anymore cars for a while, unless it a "DEAL"!
08-01-2012, 09:24 PM
#7
My first Avatar....
well, if new cars weren't so effin expensive more peeps might consider turning them over more quickly. 
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08-01-2012, 10:09 PM
#8
Three Wheelin'
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achenator, Crazy Acura, DREAMSTAH
LOL. Me and CA don't need to be in this thread.
achenator, Crazy Acura, DREAMSTAH
LOL. Me and CA don't need to be in this thread.
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Catfisha (08-02-2012)
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08-02-2012, 10:22 AM
#11
AZ Community Team
Thread Starter
My wife's 03 Pilot is at 210K miles, my TL is at 75K.
I'd like to get at least 300K on both.
I'd like to get at least 300K on both.
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Catfisha (08-02-2012)
08-02-2012, 12:04 PM
#12
'12 & '13 AL West Champs!
I've got 147K miles on my 2000 TL and I plan on keeping it at least until the 200K mile mark. Maybe even longer depending on how it holds up.
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Catfisha (08-02-2012)
08-02-2012, 01:01 PM
#13
Trading the RDX when the warranty expires next May. The TL will follow in another 3 years.
08-02-2012, 01:35 PM
#14
I had a '90 Acura Legend and almost got to 280,000 miles, was a great car up and through college. I now have my 06 TSX and would love to see it through 250,000 miles.
Most Americans would change their cars because of the horrible quality of most domestic cars. They wouldn't really last past 5 years, so it was actually economically beneficial to just buy a new one and keep warranty, instead pouring money into the pit of repairs. (Ford Focus)
People are demanding better vehicles so they are also lasting longer. I think Tech is better too so people are happier with "simpler" cars longer.
Most Americans would change their cars because of the horrible quality of most domestic cars. They wouldn't really last past 5 years, so it was actually economically beneficial to just buy a new one and keep warranty, instead pouring money into the pit of repairs. (Ford Focus)
People are demanding better vehicles so they are also lasting longer. I think Tech is better too so people are happier with "simpler" cars longer.
08-02-2012, 09:09 PM
#17
Senior Moderator
Interesting article. Thanks for sharing.
08-02-2012, 09:23 PM
#18
Rooting for Acura
iTrader: (1)
This:
"Where motorists of the past knew that their vehicles were reaching a ripe old age at 100,000 miles, today’s consumers just see that figure as a milestone to show friends."
But shhhhhhhhhh already. Don't wake up the planned obsolescence engineers.
"Where motorists of the past knew that their vehicles were reaching a ripe old age at 100,000 miles, today’s consumers just see that figure as a milestone to show friends."
But shhhhhhhhhh already. Don't wake up the planned obsolescence engineers.
They should be $2-5k cars.
08-03-2012, 05:45 PM
#20
honestly, the worst are some of these rsx's. 10 years old and some of em are still going for 9, 10k.
08-04-2012, 12:12 AM
#21
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For me, the moment at which I decide to get rid of a car is when I could be paying for something much newer/nicer for the same amount of money I put into my car monthly. Hell, just based on the last month alone, with over $3,300 in repairs I could afford an immensely better car. I think this isn't the best way to go about it, but it certainly helps make the decision to move on easier.
My 2001 330xi has over 142,500 miles, and is very shortly on the way out.
My 2001 330xi has over 142,500 miles, and is very shortly on the way out.
08-04-2012, 09:58 AM
#22
08-04-2012, 10:04 AM
#23
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Used car market is nuts, people ARE willing to pay a lot more these days for less.
Just look up a 5 year old Camry or Accord if you don't believe me. Dirty, 140,000 miles and dealers are asking in the teens.
Just look up a 5 year old Camry or Accord if you don't believe me. Dirty, 140,000 miles and dealers are asking in the teens.
08-04-2012, 10:38 AM
#24
אני עומד עם ישראל
15 percent expect to trade it in when it's 8 to 10 years old
08-04-2012, 11:44 AM
#25
Also cars are much better built and last much longer than ever before. Hell last year, had the dealer clean the fuel injectors, about a week later they sent an offer letter to buy for trade in. Was just under 4k. A 99 CRV with 125k at that time. With most cars that I've owned a 13 yr old car, be lucky to get $100 per year of the car.
Last edited by jupitersolo; 08-04-2012 at 11:48 AM.
08-04-2012, 11:45 AM
#26
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Oh well.
08-04-2012, 11:50 AM
#27
My first Avatar....
It's ridiculous.
08-04-2012, 11:52 AM
#28
Don't forgot, a lot of used come with a better warranty than new. These certified cars that offer longer than factory warranty, is one reason for higher prices on used.
08-04-2012, 12:38 PM
#29
Senior Moderator
An aside: it will be paid off in the next few weeks, over 18 months early due to financial discipline this year.
08-04-2012, 12:57 PM
#30
I've never kept a car for more than 3 years, I'm now 6 1/2 with my TL @67k. I love this car, but I need something more than this. I'm too much of a pussy to even take it on dirt roads.
08-04-2012, 02:58 PM
#31
אני עומד עם ישראל
2017-2018? Heck, I've got the itch already and it's been almost 3 1/2 years since my last car purchase. Note: usually, I'm out of my cars at 2.5-3 years, so you can tell that I REALLY like my current daily driver.
An aside: it will be paid off in the next few weeks, over 18 months early due to financial discipline this year.
An aside: it will be paid off in the next few weeks, over 18 months early due to financial discipline this year.
Like you, I'm paying quite a bit over my minimum to pay off my Infiniti a year+ early.
I'm holding fire until I see how the next gen M3 sedan, A/CTS-V, rumored 400+hp G sedan, or C63 turn out before I plunk down a lot of dough on a new ride.
First world problems
08-04-2012, 03:51 PM
#32
Racer
Just put new tires on my mom's '04 Infiniti I35 at 125k. Car drives, feels, and looks like it has 35k on it.
If my parents ever sell, I'd buy it as a "beater".
If my parents ever sell, I'd buy it as a "beater".
08-04-2012, 04:37 PM
#33
Drifting
I can attest this is true, at my dealership we had about 10 wholesale units just a few months ago, now were up to over 4 dozen. I'd say 80% of trades have over a 100k mi. That being said, I'm getting car that have more miles than I've ever seen.
Last week a guy traded in a car with 375,000. Way more people are driving them as far as they'll go.
Had a girl come in with a saturn that had no exhaust, 1 forward gear and no reverse. She was using it daily for work.
Last week a guy traded in a car with 375,000. Way more people are driving them as far as they'll go.
Had a girl come in with a saturn that had no exhaust, 1 forward gear and no reverse. She was using it daily for work.
08-04-2012, 06:03 PM
#35
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When I traded in my '02 RL with 67,000 miles, you should have seen the drooling. I got $2,000 over excellent KBB trade in.
Why? Because they could sell it all day for a lot more. (I would have sold it private party and I did attempt to but I literally live in the middle of nowhere and would rather not have people on my property)
Why? Because they could sell it all day for a lot more. (I would have sold it private party and I did attempt to but I literally live in the middle of nowhere and would rather not have people on my property)
08-04-2012, 07:26 PM
#36
Traded in the 03 CRV with 128k on the clock for a 2012 CRV, upgraded to a bumper to bumper warranty 8yr/120k with 2yr maintenance free through the local honda dealer.
04 tsx my daily has 132k on the clock and it will stay my daily until it implodes. Currently looking for my toy but used car prices are so inflated it hurts. I did find a nice g8 gt with about 30k on the clock.
Also have a super secret toyota previa, supercharged all wheel drive, lol. Deep down inside I want to do something creative with it. Either slam or lift (i live in south carolina).
Good article, good read, and I completely agree with it.
04 tsx my daily has 132k on the clock and it will stay my daily until it implodes. Currently looking for my toy but used car prices are so inflated it hurts. I did find a nice g8 gt with about 30k on the clock.
Also have a super secret toyota previa, supercharged all wheel drive, lol. Deep down inside I want to do something creative with it. Either slam or lift (i live in south carolina).
Good article, good read, and I completely agree with it.
08-08-2012, 05:00 AM
#37
The Box
Both cars are paid off, mine with 82K and wife has 92k on the pilot, planning on keeping both for a while. Why have a car payment? I drive 600+ miles a week so anything I buy I will kill the value so I'll be in the scion for a while. Just makes sense and allows me to save money for other things.
08-08-2012, 06:39 AM
#38
AZ Community Team
Thread Starter
This is so true, I've been looking all summer for a car for my daughters in the DC/Baltimore area. The majority of poor conditon high mileage Accords is amazing, many are buying them them at auto auction wholesalers and reselling. The best condition ones I see are private owners.
08-08-2012, 07:51 AM
#39
Pro
Argh!! Bring the old days back, I want rich Americans to take the hit on the new car and sell to me cheap after 2-3 years. I have a novelty fetish and get sick of stuff very quickly, I can't even go to the same coffee shop more than a few weeks - I have to drive 10 miles further down the road for "new". Driving a car 10 years? I'd probably start bicycling or something just to mix it up... and not go insane.
08-08-2012, 08:17 AM
#40
Argh!! Bring the old days back, I want rich Americans to take the hit on the new car and sell to me cheap after 2-3 years. I have a novelty fetish and get sick of stuff very quickly, I can't even go to the same coffee shop more than a few weeks - I have to drive 10 miles further down the road for "new". Driving a car 10 years? I'd probably start bicycling or something just to mix it up... and not go insane.