(My guest blogger for this issue is Kurt Schlaefer of Centennial Leasing and Sales)

Recently, I’ve had many questions about used car pricing. Most people assume that, because it’s a bad economy, dealers should be selling their used vehicles really cheap. Just the opposite is happening because of very low supply. In the last twenty years, your vehicle’s value has dropped each year due to increased mileage and age. However, last year your current vehicle may have actually increased despite it being a year older with higher miles. It may be a great time to trade it in, if you’ve a mind to move into something new (or at least newer), or different.

I keep my old National Automobile Dealer Association (NADA) books for one year to verify what I see going on in the car market, based on supply and demand. To give you a mini-snapshot of what’s happened in the used car market in Denver over the last year, I’ve taken four sample 2008 vehicles and compared book values from January 2009 to January 2010, below:

1. ASIAN SAMPLE –
2008 Toyota Highlander Sport V6 4×4 w/Pwr Seat/3rd Row Seat/Rear Air (Warranty-3 yr/36k)
(7 Japanese Mfgs – 40% of the new 2009 USA Mkt)

  JAN 2009 JAN 2010
MSRP – $33,573.00 (1 yr old -12.5k miles) (2 yrs old – 25k miles)
NADA Clean Trade-In Value – $24,100 $25,300
NADA Retail Value – $27,250 $28,725

2. ASIAN SAMPLE –
2008 Hyundai Santa Fe SE V6 AWD no Pwr Seat/3rd Row Seat/Rear Air (Warranty-5 yr/60k)

(1 Korean Mfg – 7% of the new 2009 USA Mkt)

  JAN 2009 JAN 2010
MSRP – $28,555 (1 yr old -12.5k miles) (2 yrs old – 25k miles)
NADA Clean Trade-In Value – $20,450 $19,725
NADA Retail Value – $23,650 $23,525

3. AMERICAN SAMPLE –
2008 Ford Explorer V6 XLT 4×4 w/Pwr Seat/3rd Row Seat/Rear Air (Warranty-3 yr/36k)
(3 Mfgs – 44% of the new 2009 USA Mkt)

  JAN 2009 JAN 2010
MSRP – $32,320.00 (1 yr old -12.5k miles) (2 yrs old – 25k miles)
NADA Clean Trade-In Value – $17,475 $18,500
NADA Retail Value – $20,350 $22,250

4. EUROPEAN SAMPLE –
2008 Volvo XC90 3.2L AWD w/Pwr Seat – no third row seat (Warranty-4 yr/50k)
(7 Mfgs – 9% of the new 2009 USA Mkt)

  JAN 2009 JAN 2010
MSRP – $38,805 (1 yr old -12.5k miles) (2 yrs old – 25k miles)
NADA Clean Trade-In Value – $25,550 $26,050
NADA Retail Value – $29,125 $30,125

Traditionally, all of these vehicles would have dropped at least several thousand dollars in value during their second year. However, most of these actually increased in value. Demand for these vehicles has somewhat increased, but the primary cause is that supply has plummeted.

Call me at 720.271.8277 if you have any questions, or if you think you’d like to look at vehicle changes sometime this year.

Kurt Schlaefer
Centennial Leasing and Sales
67 Inverness Drive East, #100
Englewood, CO 80112
(720) 271-8277 – cell
kschlaefer@centleasing.com

Kurt Schlaefer graduated from the US Air Force Academy in 1970 and married Joan under the sabers the very next day. He left the Air Force in 1983 to better take care of his family and young children. “We’ve owned several businesses and worked together since then to raise a family. We’ve enjoyed helping individuals and commercial clients and their referrals find new and used quality vehicles to lease or own since 1990. We find “CARS FOR PEOPLE” not people for cars”. Competence and Integrity are paramount. 

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Stella’s Story – Part II
(I finally found a local loan modification expert!)

Remember Stella? She’s my friend who has been doing EVERYTHING asked of her to get a loan modification, only to hit roadblock after roadblock. Therefore, I was so excited when I heard her loan mod was finally going through with her lender, (this is only because a HUD counselor stepped in). Unfortunately, I then learned that she’s still struggling with getting it done. I’ve been digging and digging to find a licensed loan officer who specializes in loan modification, and who also happens to be local. After a lot of searching, I finally found one. Stella and Bridget Raab are working together now, so stay tuned.
 
As far as loan modification statistics go, I heard on NPR yesterday that the number of loan modifications that have taken place through HARP (Home Affordability Refinance Program) is 110,000. This program is set to continue through 2012. I’ve also heard that HUD and Treasury officials say they are showing they mean business about pushing for more loan modifications by sending personnel to lenders’ offices to monitor the process.
 
The program allows lenders to set up three-month trials under which qualified, at-risk homeowners can pay a lowered monthly payment.
 
December numbers released Jan. 19 show more than 1.1 million homeowners have been offered trial modifications since the program began. More than 854,000 of the 900,000 homeowners in trial modifications have received monthly payment reductions of at least $500 under this program.
 
If you know anyone who is struggling with their house payments, and needs a loan modification, here is Bridget’s information:

Colorado Loan Modifications
Bridget Raab
303-520-6049
braab@hrc-corp.com