First it was new type Rs now are dealers killing the used market as well?

Harlaquin

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So we all know about the hell most of us had to go through to get a type R. And still till this day some markets like California still have ADM on the type Rs. But now that a large majority of dealers have calmed down finally and charge MSRP it seems the used market is now being killed off. In my area alone I know of 3 used type Rs and the prices are insane. Most only 500 less then a new one. So the used type Rs sit there because who is gonna buy a used one over a new one to save 500 bucks?

Two of these used ones I know what was given as trade in 34k for one and 32.5k for the other. I suspect the problem is in the trade values. Dealers are giving way to much trade in for the used Rs(which is great for us selling ours) which in turn makes the resale way to high to make a profit and makes a used one about the same as a new one.

Now no one is gonna complain about a dealer giving them way to much for their trade but what this does is makes it so Rs are just siting around which in turn makes then seem like no one wants them. this in turn makes the car seem less desirable and starts to kill the market.

I have now seen a type R sitting on a back woods used car lot now for some time. And it wont sell cause its priced at 36,500 for a used 17 type R. who the hell is gonna buy it at that price? No one so it sits there and looks like no one wants these cars because now heres one sitting on a joe bobs used car lot.

The funny thing is this type R we sorta know a history of. It was traded at the Honda dealer, sent to their Acura used lot, sold to some other used car dealer then sold again to the used lot it now sits on... strange.
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Nanook

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It’s been that way for a while. When I first started looking at the end of last year most of the see cars I found were priced at MSRP. There was one at $1000 with 24000 miles! The funny thing? They sold. Carmax sold three at or above MSRP in a month.
 

tinyman392

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If you’re in the Chicagoland area, Honda of Lisle is selling a blue one at sticker new. It’s been there for like a week.
 

CW20038TypeR

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I rather it sit on a lot priced high than priced low.... lmao

Am I missing something ????????

If they price it high it sells higher even after they get offers on it thus helping the resell value for rest of us.........
 

Bodhizefa

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Honestly, this is great for all Type R owners, and I hope the used prices stay right around MSRP for as long as possible. It will eventually begin to fall, but the used price index shows our car to be highly sought after and as good an investment as a depreciating asset can get.

In other words, having a badass car? Awesome. Having a badass car that also has an exceptionally slow depreciation rate? Frakking fantastic.
 


CW20038TypeR

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How is this a complaint? lol. It's awesome that the used market is staying high.

Yeah I’m not sure OP understands what is happening lol.....

Who the hell wants it selling cheap and fast.....???

It’s a good thing this isn’t like a bmw where once you leave the lot you are negative 10k!!!! Our cars being resold used for next to MSRP is a damn beautiful thing.

I rather they keep marking up the used ones so people continue to pay the higher prices on the cars and keep the resell value up.

I’m in SoCal there really isn’t much inventory in any of the dealers.
 

ipeefreely

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Yeah I’m not sure OP understands what is happening lol.....

Who the hell wants it selling cheap and fast.....???

It’s a good thing this isn’t like a bmw where once you leave the lot you are negative 10k!!!! Our cars being resold used for next to MSRP is a damn beautiful thing.

I rather they keep marking up the used ones so people continue to pay the higher prices on the cars and keep the resell value up.

I’m in SoCal there really isn’t much inventory in any of the dealers.
haha I really hope the OP was just being sarcastic.

And about the inventory... really? I actually bought my ctr at msrp from so cal. The dealers here SUCK.
 

jetydosa

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Yeah it sucks that dealers are paying owners so much in trade in value.
 

wildbilly32

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The kid traded his 11,000 mile 2018 CTR in on a new car. It sat on the dealers lot for almost 6 months priced just above what I paid for my 2019. We figured they were using it for a draw as they had it on the showroom floor. It has now disappeared. Don't know if they sold it, auctioned it or the owner gave it to his kid who is out trashing it around. Seemed like a large investment to be sitting around that long, however, I have never been a car dealer and don't necessarily understand how they think. I agree with those above who say "Great keep the used prices up".
 


CW20038TypeR

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The kid traded his 11,000 mile 2018 CTR in on a new car. It sat on the dealers lot for almost 6 months priced just above what I paid for my 2019. We figured they were using it for a draw as they had it on the showroom floor. It has now disappeared. Don't know if they sold it, auctioned it or the owner gave it to his kid who is out trashing it around. Seemed like a large investment to be sitting around that long, however, I have never been a car dealer and don't necessarily understand how they think. I agree with those above who say "Great keep the used prices up".
1. we don’t know what the kid got for the trade, it could of been low so they can sit on it forever.

2. Every dealer with a type R knows it’s a niche car, this isn’t a car they need to move..... it draws people in to buy other cars.

3. They move volume on accords civics oddesey that is their bread and butter and money maker, not a type R.

4. The type R can sit until they find the proper buyer hence why in SoCal we still see markups on everything.

5. It’s used so if they have new R inventory they can use it as a test drive vehicle until they sell it.

There is so many reasons to why they wouldn’t move it, but saying it is ruining resell by marking the price high sounds pretty dumb in fact it is doing the opposite. It is making you all buy new ones at msrp or +ADM because the used R price is so strong.

If the used R price fell low, so does the pricing on new R and thus eventually dragging down resell.
 
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Harlaquin

Harlaquin

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To those saying I dont know what Im talking about. lets see...
First you have to think outside yourself. Yes dealers paying to much on trades is great news for those trading theirs in. But just because someone over pays is not a good thing for buyers. and as we know people spending money helps the economy of something and not a secondary resale market. Just ask gamestop :)

But to my point this whole forum for the most part complained and bitched about the prices of new Rs saying they were to high but now are perfectly fine with used ones being priced the same as new? well when it puts money in your pocket instead of taking it sure. But that isnt always good news for anyone else.

Maybe in your areas of the country you dont see this problem as places like California new ones are so high that a msrp used one seems a deal. but on the lower east coast this isnt the case. No one here is gonna walk onto a lot and see a new one at MSRP and a used one at only 500 less and go oh let me buy the used one. so it sits. And cars sitting on lots is not good. If a car sits on a lot for a month most people are gonna ask why? then become shy of buying it. then when you start seeing them sitting on lots of used car lots you start to question why so many are being traded in and then sitting. And like most people your gonna start looking at something else. then the cars sit so long new models come out and it becomes even harder to sell them.. just ask Chevy about the corvette.

So yes dealers can pay to much for used cars and then try selling used cars for to much which in turn makes then sit and in turn makes people question why they are sitting and makes then look else where which in turn over time makes trade ins worth less because there is a glut of used ones already sitting. effectively killing a used cars value.

Gotta look outside yourself and at the market as a whole its great if you can get top dollar for your R now but for those of us wanting to keep it and hopefully see it maybe become a collectible, having a bunch of over priced used one sitting around is not a good thing.

But like I said different areas of the country sure they dont sit in california and hot markets but here... if you need a new one or a used one come to NC they are all over the place. That is why when you look up trade values they want your area code. Because they check the market in that area. I can but a new R here for MSRP and then take it to California and in 2 days flip it for 2k.

Yall are more then happy to sell your R for over msrp to a dealer and think its great. but if you were the one out looking to buy one you wouldnt pay that for a used one now would you? and that right there is what kills a used market and lets cars sitting on lots.
 

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It's pretty simply, Harlaquin... Those people that paid 10,000 over sticker a few years ago are trading their cars in. Dealers are paying high trade value because the payoff is getting rolled into the new car the customer buys - lowball that trade and the customer isn't in a position to afford anything new. As others have pointed out, these are rare cars. Honda dealers get them on a lottery system, and are lucky to get one in at a time. As for used? They're unicorns. Like any unicorn car, this means they can sell for high value. Hondas, in general, have excellent residual. Almost ANY used Honda with super low miles and recent model year (2018, 2019) is going to sell for near to full sticker price. This is one of the main reasons people BUY Hondas. Add in the rarity and high payoff amounts I explained, and you'll see most low mile Type Rs are selling for close to sticker, if not full sticker.

What you're observing is pretty normal in the industry, especially for Honda cars. The problem here is that you're not used to looking at the market, you're just hyper-focused on one specific car and thinking you're seeing something unusual.
 

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1. we don’t know what the kid got for the trade, it could of been low so they can sit on it forever.

3. They move volume on accords civics oddesey that is their bread and butter and money maker, not a type R.

4. The type R can sit until they find the proper buyer hence why in SoCal we still see markups on everything.

5. It’s used so if they have new R inventory they can use it as a test drive vehicle until they sell it.
#1: In the range of $32k something.

#3: Mazda dealer, not a Honda dealer.

#4: Southern Indiana...not California.

#5: Good point, but again not a Honda dealer.
 

xABNINx

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sucks for people buying. Good for people that already has it. I prefer pricing and mark up to be high and keep going high LOL
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