As often reported, the COVID-19 pandemic created a perfect storm for high car prices. Between chip shortages and demand outstripping new car supplies, dealerships and buyers alike have been storming to used cars. Prices on many used cars have, like many other things in this economy, risen dramatically, leading to some frankly wild headlines and even wilder dealership listings. Look no further than our own reports about the state of the used car market. Just this morning, my colleague Thomas wrote about how Nissan will sell 10-year-old certified pre-owned Altimas. Or perhaps more incredible is the fact that Nissan is apparently willing to give its Certified Select CPO branding to non-Nissans, too. Not even the very low end of the market is safe from this madness. Cars that may have been $500 in the past can be far more expensive now. Even my favorite kinds of cars, German ones known for dubious reliability, have seemingly spiked in price. And now we have another example of how bad things are. Take a look at this 1993 Honda Accord LX that is actually being sold by a Toyota dealership.
This comes to us thanks to Zerin Dube on Twitter. The dealership, Vic Vaughan Toyota of Boerne in Boerne, Texas (the dealership pronounces that like “Bernie”) actually had this car listed on its website. The listing has been taken down, but I called the dealership to confirm. I spoke to Aaron, the dealership’s Used Car Manager, and while Aaron wasn’t sure if the car was still for sale, he confirmed to me that the listing was real and the dealership was indeed selling this car. Our conversation was short, but I asked Aaron a few questions about the car and the dealership’s used vehicle sales. He wasn’t sure where the car came from or anything about its story. However, Aaron tells me that the dealership sometimes gets cars like these to sell to buyers that need some cheap transportation. I asked how the dealership determines what cheap cars to sell, and he told me that the dealership will sell any car that can pass Texas inspection. Sure enough, the Honda is good until December. Finally, I was also able to ask Aaron about how these types of cars are selling nowadays versus before the market went crazy. And he told me that he believes that they’re selling more super inexpensive cars like this Honda today than the dealership did in the before times. So, how far does your $2,200 go with this Honda?
This is a fourth-generation Honda Accord. The fourth-generation of Honda’s family hauler sedan brought the vehicle into the mid-size. Its design is more evolution than revolution over its predecessor. The rad 1980s-style pop-up headlights were gone, as was the hatchback. SAE International notes that Honda did more than just eliminate pop-up headlamps, as it engineered headlights that had totally clear lenses to improve lighting efficiency. Also new is an all-aluminum 2.2-liter inline four. In an LX like our car here, it’s making 125 HP. That’s not a ton of power, but at least it gets to the front wheels through a five-speed manual. Honda’s cars from this era were known for their good engineering and it shows.
Ok, well, maybe not in this car. It has 344,591 miles on its odometer and has the scars to show for it. The hood started losing its paint long ago. Its bumper has lost pieces here and there. And there’s what appears to be a rubber seal on the ground. It’s unclear if that seal belongs to this car, but it helps make for a perfect visual of a hard-working Honda. The left side hasn’t fared much better, with the bodywork wearing the dents and crinkles of some past mishap. The rear of the car looks cleaner, where the worst damage is a crinkle and some rust under the left taillight. And by clean, I definitely mean damage. The dealership didn’t bother washing it before snapping photos.
Considering the rest of the car, the right side is surprisingly clean. If this were a Facebook Marketplace listing, this is the side that would be the first picture. We’re not given interior photos of the car, but from the outside it appears that the headliner is intact. This car probably got many different people to all kinds of places over its nearly three decades on this planet. If it could talk, it probably has so many stories to tell. And I bet that despite the looks, it probably still runs well. Still, three years ago, this car would have probably been less than $1,000. But this is the reality that we’re in now. [Editor’s Note: I’m all for dealers selling old high-mileage cars. It’s just wild to see a car this crappy framed like it is in the top photo, with the dealership shown proudly in the background. You’d think this car would typically be relegated to the back lot, and sold to the mechanic’s 16 year-old nephew. -DT]. Recent data suggests that the used market may be beginning to cool down. Hopefully it does, and we can go back to lovingly enjoying these cheap cars on the cheap. Often my favorites were dealers in northern states like PA and MI pushing cars with extensive, visible rust and/or damage, yet with the similar generated dealer background. Sometimes even listed as mechanic’s special! This Accord is pretty tame as it still has matching OEM wheel covers and all body panels are the same color. Sometimes, the cars end up on the site because the dealer’s systems automatically push them through before they can change them to wholesale status. Lot guys or inventory managers will sometimes take a couple quick pics for internal use and those might slip onto the site (might be part of the appraisal process too). Even for trades they are keeping, they’ll have these pics up before they prep them for the lot – not unusual for the old owner’s things still inside, all the takeout containers and car seats and air fresheners and more. Usually they’re all paired with an automatically generated vehicle description too, one of my all-time favorites was some rusty early 00s Dodge – “ONE CLEAN DODGE! WILL NOT LAST!” …sort of truth in advertising? Though now that I think about it, I suppose the reverse does happen. And I say, “Are we really going to sell a 2009 Elantra with 97,000 miles?” and I get told, “Oops, that’s getting wholesaled, gotta move it over,” or, “It’s under 100k, innit?” (Though I wouldn’t take more than a single “New Arrival, Excuse My Appearance, More Photos Coming Soon” shot of a car in the Accord’s condition.) So I guess, since I only deal with the DEP side, I have no idea how Auto/Mate works and defaults, all I know is I need to talk to someone with access to change the status there so it pushes to the DEP site correctly 😛 Heck sometimes it could just be the photographer getting paid per car or ‘% of inventory with photos’, so yes that rusty Ford Five Hundred is getting a full complement of photos. Part of the issue is that there’s so many different programs that ‘talk’ to one another but not always very well. Which is a little surprising since now so many of these companies are owned by a single large company, but little seems to be done to tie them together better. Some dealers want to show the wholesale pieces to beef up their inventory and at least try to get a lead on a car, like someone just looking for a cash car for example. Of course, I doubt many are going to auction with the demand for used cars these days. https://www.autoblog.com/2017/11/16/carmax-buys-viral-1996-honda-accord-20k/ There’s definitely people out there that think their shitty beat up car is worth X amount over book value BeCaUsE tHe MaRkEt, but there’s just as many people out there who either don’t care or are oblivious to the elevated car prices. In particular, one can still find HHR’s, 3rd Gen Escapes/Mariners/Tributes with the 4 cylinder, and 2nd gen Sportage/Tuscons (which are from the pre Theta era and are actually quite reliable workhorses) with under 150k miles for under 5k in tolerable condition. One can also find facelift (2005-07) first gen Focus’s (which had the better upgraded Zetec motor) with relatively low miles in the 3-5k range, and they are durable, efficient and have all power and basic safety features. Interestingly, the short lived Elantra Touring wagon from 2008-2012 with the pre Theta 1.8 engine is also quite affordable, with many specimens under 150k going in the 4-6k range all day long. And of course, mid to late 00’s GM sedans like the Bonneville, Grand Prix, LaCrosse, Lucerne and the Panther platform vehicles can be had from elderly owners with 80-140k miles in that sub 6k pricepoint all day long. All of these are still new enough to get Credit Union financing if you don’t have cash on hand (CU’s will finance cars up to 15 years old) and have a sub $225 payment even with the increased interest rates and are all cheap to insure. If you’re willing to go with something a bit more unconventional in the used market, there’s still deals to be had. You just have to think outside the box and be ready to pounce on a good specimen quickly. Then the HUNDRED THOUSAND of other CUV buckets on the road with the UMPTEENTHOUSAND problems that a “new” car has. EVEN Honda’s own recent stuff doesnt have half of the engineering this car had.
