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MyNameIs · 11-28-2023, 08:07 PM

Reprint from BARRON'S...

Used Car Prices up 35%!

Updated April 08, 2023, 10:16 am EDT / Original April 07, 2023, 3:55 pm EDT

My car seems to be beating the stock market. It’s nothing special—a midsize, mass-market sport-utility vehicle leased in September 2020. On the pandemic supply-chain timeline, that’s after the toilet paper panic and just before the everything-else shortage. And yes: leased. I get a new car every three years to avoid the hassle of repairs and periodically clear my seat rails of Happy Meal fries.

The lease is based on a $40,000 purchase price and a $26,000 “residual” value at turn-in, which I can pay for the car if I want. I’m running so far over my mileage allotment that I’m starting to suspect myself of sleep-Uber-driving. That should subtract from the car’s actual value at turn-in, yet I see identical, high-mileage cars selling now for $33,500. If those prices hold for a few more months, I’ll be “up” on my buy option by 29%. That’s two points more than the S&P 500 index has returned over the same stretch.

11-28-2023, 08:07 PM	#1
MyNameIs Banned Drives: Camaro SS Join Date: Aug 2023 Location: Middle Park East, Liberty City Posts: 331	Used Car Prices Beats Stock market! Reprint from BARRON'S... Used Car Prices up 35%! Updated April 08, 2023, 10:16 am EDT / Original April 07, 2023, 3:55 pm EDT My car seems to be beating the stock market. It’s nothing special—a midsize, mass-market sport-utility vehicle leased in September 2020. On the pandemic supply-chain timeline, that’s after the toilet paper panic and just before the everything-else shortage. And yes: leased. I get a new car every three years to avoid the hassle of repairs and periodically clear my seat rails of Happy Meal fries. The lease is based on a $40,000 purchase price and a $26,000 “residual” value at turn-in, which I can pay for the car if I want. I’m running so far over my mileage allotment that I’m starting to suspect myself of sleep-Uber-driving. That should subtract from the car’s actual value at turn-in, yet I see identical, high-mileage cars selling now for $33,500. If those prices hold for a few more months, I’ll be “up” on my buy option by 29%. That’s two points more than the S&P 500 index has returned over the same stretch.