Looking to take advantage of low-interest rates and stimulus check savings by buying a used car? Get in line.
Used car prices are soaring nationwide due to a global semiconductor shortage, which has forced some car manufacturers to shut down assembly plants, limiting new car inventory. There's also pent-up demand from consumers, who are armed with savings and ready to spend at this stage of the pandemic.
Killion Auto Sales in Round Rock had just one used car on its lot on Monday, compared to at least 60 normally, and has closed on Saturdays for the foreseeable future. "I am still buying cars, but they are just selling as fast as I bring them," co-owner Nathan Killion told Austonia.
Used car inventory is largely determined by new car inventory, fueled by trade-ins and other turnover. Car manufacturers faced factory shutdowns during the pandemic and are now contending with a chip shortage, meaning new car inventory is severely limited, and demand is spilling over onto used car lots.
Although Killion said demand is high, with stimulus checks and accidents driving customers onto used car lots, it doesn't make financial sense for him to buy used cars at a huge markup because his small dealership handles its own financing. Even if he is able to sell such vehicles at a profit now, the market will eventually correct. If one of his buyers gets into a car accident, insurance may only cover a portion of the car's sales price, leaving him out of pocket. "We've decided that it's better to have fewer cars that I can try to sell for reasonable money and to mitigate that loss when something bad happens," he said.
Still, with sparse lots and eager customers, the used car market currently benefits sellers.
"I just sold one of my cars for nearly the same price I paid for it three years ago," Randy Frederick, Austin-based managing director of trading and derivatives at the Schwab Center for Financial Research, tweeted on Monday.
Used cars indeed; it's a seller's market. I just sold one of my cars for nearly the same price I paid for it 3 years ago. Sell if you can; don't buy if you don't have to.https://t.co/wyfH3UcCAS https://t.co/1eIzCIj3Cs
— Randy Frederick (@RandyAFrederick) July 19, 2021
South Austin Nissan is "giving all the money for decent vehicles" due to the nationwide inventory shortage, sales consultant Mark Sanchez wrote in a May 6 Facebook post. "Decent mileage and well taken care of pre-owned vehicles are worth GOLD!"
Carmax, the largest buyer and seller of used cars in the U.S., saw record demand in the first quarter of its current fiscal year, selling approximately 452,000 cars between March and May, up 128% from the same period last year, according to a statement shared with Austonia. The retailer, which has two Austin locations, reports that its sellers often receive a higher offer than they anticipated.
But a seller's market may price out prospective buyers. (Just look at the Austin housing market, where similar supply-and-demand issues are at work.) Overall, used car and truck prices increased 10.5% in June and a staggering 45.2% year-over-year, according to the U.S. Bureau of Labor Statistics.
Some used cars now command higher prices than their brand-new counterparts. "Dealers may think used car buyers are willing to pay more for the instant gratification of a lightly-used vehicle they can drive right off the lot rather than waiting for a new one," iSeeCars.com Executive Analyst Karl Brauer said in a recent analysis.
Killion anticipates it will take at least a year for new car inventory to catch up to demand after various delays. In the meantime, he has four or five notes on his desk from people who are looking to buy a used car, if only he can find one. "Having transportation in Austin, Texas, is not exactly optional," he said.
- Austin housing market keeps heating up—but supply is too low ... ›
- U.S. Sen. Cornyn meets with Austin chip companies amid shortage ... ›
- Mid-priced bicycles are rare in Austin as shortage rolls through local ... ›
Atop one of Austin's signature rolling hilltops, 1501 Ridgecrest Drive is similar to one of the plush palaces that one might find in Calabasas. For $10.9 million, the home has four bedrooms, four-and-a-half bathrooms and caps at 10,498 square feet.
Park in the massive, fully air-conditioned garage before walking in, where you'll have eight full spaces to park your collection of cars. If you're not a collector, the garage makes an excellent studio space.
The wide-open living spaces will draw your eyes to the two-story ceilings, glass catwalk, integrated fireplace and wall of floor-to-ceiling windows that overlook the pool.
Though the house was built in 2011, it doesn't show its age. Sleek, clean lines lead seamlessly from the formal living area to an elite open-plan kitchen. Separated by a 25-foot waterfall island that can seat at least eight people, the kitchen is fitted with only the finest Miele and Subzero appliances. The custom cabinets are just as pricey as the rest of the place, finished with custom high-gloss Aston Martin (you read that right) paint.
Upstairs in the sprawling master's suite, there are enough amenities to never have to set foot outside again. Armani tile floors, space for living and a walk-in showcase closet lead into the resort-style bathroom, where you'll find dual vanities, a walk-in shower and a lounging bathtub.
The bedroom is a quick elevator trip away from the "party" room, complete with a bar, wine room and movie theater, only the best for entertaining. If your guests are staying over, rest assured they'll be comfortable with the kitchenette, washer and dryer and spa-like bath in their suite.
Though summer has passed, you can still enjoy the grand lap pool's unobstructed Hill Country views, many private lounging areas, grill a homemade snack at the outdoor kitchen or shoot some hoops at the newly-added court.
The listing is held by Compass' Gary Dolch.
- Two luxury Austin hotels listed on Conde Nast Travelers list - austonia ›
- Austin's luxury Soho House opens today for local creatives - austonia ›
- What $10 million or more can get you in Austin luxury homes ... ›
- Austin luxury real estate market booms in pandemic - austonia ›
In what could be one of their least energetic showing to date, Austin FC was outperformed by home team San Jose in a 4-0 road loss late Wednesday night.
As the first team officially out of playoff contention in a loss on Saturday, the team seemed defeated from almost the moment they hit the pitch as Quakes standouts Chris Wondolowski and Javier "Chofis" Lopez scored on the team.
A 10th-place San Jose maintained a clean sheet in the match as they inched closer to a last-minute spot in playoffs.
Just as they did in their 1-0 loss Saturday, it was Austin FC who struck first in the match. Captain Alex Ring forced a save from Quakes keeper JT Marcinkowski in just the second minute of play, while star forward Sebastian Driussi followed soon after.
A little over 10 minutes later, San Jose responded with a shot of their own as Austin keeper Brad Stuver was forced into action with a diving save. But with a failing backline and a lack of energy throughout, a frustrated Stuver wouldn't be enough to stave off the home team Quakes in their four-goal triumph.
After a slow first half, San Jose star Chofis was the first to strike after sneaking past Stuver to make it 1-0 for the home team to kick off the second half.
Just five minutes later, Quakes midfielder Benjamin Kikanovic broke free with a fast-paced drive in a play that saw two Asutin FC players hit the ground to double the lead. Stuver and other players were immediately outraged in the controversial call after an apparent handball in the box.
MLS' top all-time scorer Chris Wondolowski capitalized on the slow Austin defense next, taking a pause in the box to score the third goal unmanned in the 59th minute.
Finally, Carlos Fierro clinched the win for the home team after placing a header from six yards out off of a cross and corner kick to end the match 4-0 for San Jose.
Austin Head Coach Josh Wolff attempted to staunch the wound with a series of subs starting at the beginning of the second half, subbing in native Austinite McKinze Gaines for Moussa Djitte and Rodney Redes for Cecilio Dominguez. But no subs were enough to push back against the 'Quakes as the team lost their second match in a row.
Austin FC has four final matches to end the season, including two remaining home matches against the Houston Dynamo at 4 p.m. on Sunday and a final match at Q2 Stadium against Sporting Kansas City at 8 p.m. on Wednesday, Nov. 4.
Here's a live blog of the match:
85' San Jose makes it 4-0
Austin FC once again can't plug holes in the box as San Jose scores their fourth goal of the match off a set piece and header to make it 4-0 in the 85th minute. The Quakes' Carlos Fierro scores on a header from close up after a well-placed cross from Cristian Espinoza as a frustrated Stuver is unable to block the six-yard shot.
Frustrated and sluggish, Austin FC appears to have lost their chance at a win or draw in one of their worst losses by scoring margin this season.
59' Wondolowski scores for the "Quakes
Just a minute after he hits the pitch, MLS' all-time top scorer Chris Wondolowski tacks one more onto San Jose's lead as the home team leads 3-0 in the 59th minute. A beleaguered Austin leaves Wondolowski undefended as he receives the ball in the box, pauses and scores in the bottom right corner of goal.
It's looking to be an especially bad match for Austin, who already sit at the bottom of the West. The Verde and Black continue to be outperformed in their late-season road matches.
53' Austin doubles the lead
After a rough-and-tumble drive that saw two Austin FC players take a fall, San Jose's Benjamin Kikanovic shoots past Stuver to score the second goal of the match for the home team. The play drew ire from Austin FC players including Stuver, who said there was a handball in the box. Austin's defense continues to be outperformed in the match.
47' San Jose scores first
The Earthquakes finally capitalized on a sluggish Austin FC as San Jose's Javier "Chofis" Lopez snuck one past keeper Brad Stuver and a last-ditch dive from Austin's Jhohan Romana to net the first goal of the match. The goal is Lopez' 12th on the season.
40' Romana gets yellow carded
Romaña is trying to play flag football 😂 #AustinFC— Seth Davis (@sethdavis512) October 21, 2021
Austin FC's Jhohan Romana is the first to get yellow carded in the match after grabbing a jersey in the 40th minute of play. Seconds later, Austin nearly gets an opportunity as San Jose keeper JT Marcinkowski fumbles a blocked shot, but he passes the ball off before the Verde and Black can get one in off the rebound.
The Quakes repeat the move in the 41st minute as they nearly get one past Stuver, who is able to hold it down unguarded and grab a shot from Jeremy Ebobisse.
18' Stuver keeps it clean
Just like Saturday, it was Austin who struck first with a shot by Captain Alex Ring in just the second minute of play. Star newcomer Sebastian Driussi came soon after with a shot of his own, but the ball was once again kept out of goal.
Just over 10 minutes later, Austin keeper Brad Stuver got his first big test as the Quakes' Jeremy Ebobisse shot one towards the bottom left corner. In signature fashion, Stuver was able to keep a clean sheet.
Austin's "strongest lineup yet" may not have been able to finish in Saturday's loss, but they created plenty of chances. Wolff seems to have confidence in the starting XI and hasn't changed much for tonight.
Nick Lima is in for right back in Hector Jimenez's stead, while Cecilio Dominguez, Moussa Djitte and Sebastian Driussi lead up front. Center back Matt Besler remains out on concussion protocol.
Tesla's third-quarter profits were released on Wednesday afternoon and current richest-man-on-earth Elon Musk topped the charts since his high-profile transition to Austin.
Q3 held record-high deliveries for the electric vehicle manufacturer, despite chip shortages and supply chain issues. Revenue came in slightly shy of expectations but still yielded the most profitable quarter thus far for Tesla. Plus, adjusted earnings per share are also on the rise.
"A variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our ability to keep factories running at full speed," Tesla said in a statement. "We believe our supply chain, engineering and production teams have been dealing with these global challenges with ingenuity, agility and flexibility."
According to Tesla's update, the EV giant's Q3 revenue came in at $13.76 billion—a big year-over-year increase as Tesla recorded $8.77 billion in Q3 of 2020. The expectation was $13.9 billion and though the company came in just a few million lower, it was the company's ninth-straight profitable quarter.
Though earnings were a touch lower than expected, adjusted earnings per share came in at $1.86, where expected had been $1.67, and a year ago was 76 cents per share.
An accomplishment for Tesla this quarter was delivering more than 241,300 vehicles worldwide from its California factory—almost half of what the company delivered throughout all of 2020.
This Q3 update comes on the heels of Tesla's announcement that it would move its headquarters to the capital city. Additionally, the new Gigafactory in southeast Travis County is looking more complete by the day. While full-scale production isn't slated to start until 2022, the factory has already begun testing its robotic assembly line.
- Elon Musk lives in a tiny Boxabl home in Boca Chica, Texas - austonia ›
- Elon Musk, Joe Rogan and Dave Chappelle walk into Stubb's BBQ ... ›
- Elon Musk and Grimes break up - austonia ›
- Where SpaceX's Elon Musk ranks in the billionaire space race ... ›