Cutting through the misconception that “Auction Cars” are Bad.

Are Auction Cars Bad?

A long time ago, when a used car “went to auction” after being traded in, meant that it was beaten up, past its usefulness, and undesirable. Anymore, the “bad auction car” theory is actually a misconception since really, most used cars on the market go through an auction anyway.

Think of it this way, a customer may trade in a Ford Explorer at a Honda dealership, for say, a CRV, because they want to downsize. This Ford Explorer may only be 1 or 2 years old, with low mileage, and otherwise in excellent condition. That used Ford may not be desirable inventory for this Honda dealer. So what to do? Send it to a reputable wholesale auction, like Manheim. There, dealers bid on this and millions of other vehicles that ARE a good fit for their lot.

It can be okay to buy a used car from an auction, but it is important to do your research and be cautious before making a purchase. Some auctions may offer cars that are in good condition and can be a good value, but others may have cars that are in poor condition or have hidden problems. It is a good idea to inspect the car thoroughly before buying it. It is also a good idea to check the car’s history (via the free CARFAX report)  to make sure it has not been in any major accidents or had other major problems. Overall, buying a used car from an auction can be a good option if you are careful and do your due diligence.

 Why do New cars depreciate faster than used cars?

You may have heard the phrase “this car will lose 20% of its value as soon as it leaves the lot!”.  Typically, people are referring to a NEW car’s depreciation or loss of value over time. Generally, new cars will depreciate faster than used cars because they are considered to be worth less as soon as they are purchased.

This is because cars are considered a depreciable asset, meaning that their value decreases over time. New cars depreciate faster than used cars because they lose a significant portion of their value as soon as they are driven off the dealership lot, compared to used cars, where this process has already happened (when the car itself was new).

The rate at which a car depreciates depends on a number of factors, including its make and model, age, mileage, and condition. Some vehicles, like garage-kept collector vehicles, can develop an “immunity” against depreciation, where their value even goes UP over time.

In Loving Memory of Cars Discontinued This Year

These Are All the Cars That Are Dying in 2022 from
https://jalopnik.com/these-are-all-the-cars-that-are-dying-in-2022-1849848770/slides/18
© 2022 G/O Media Inc.

Twilight has come for these popular vehicles at the end of 2022, and they will no longer be manufactured and available for sale in 2023 and onward.

Acura ILX
Buick Encore
Chevy Spark
Ford Ecosport
Ford GT
Honda Insight
Hyundai Accent
Hyundai IONIQ
Infiniti Q60
Lamborghini Aventador
Lexus RXL
Mercedes A-Class
Nissan Rogue Sport
Ram ProMaster City
Toyota Avalon
Volkswagen Passat

But all is not lost! At Fellah Auto Group, we have a bunch of these vehicles still, and will for years to come. Our purchasers have access to the pre-owned wholesale market, off-lease vehicles, and trade ins. We can get you exactly what you need if it’s out there.

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