Craigslist + Serendipity = A Great Used Car

00:00 - Show Open

I share my strategy to find interesting local used cars, trucks and SUVs with just a few minutes of online searching each day.

00:53 - Craigslist Scrolling + Serendipity = A Great Used Car

Computer chip shortages, supply chain issues and inflation have pushed the average price of a new car in the US to more than $48,000 and the average used vehicle in the US now sells for more than $33,000. So if you're looking for a late model used car between model years 2018 and 2022, you're in for a surprise when it comes to price.

To get around that, I proposed in Better Than New Podcast Episode 4 that instead of overpaying for a new or late model used vehicle, buyers would be better off getting what I call a "Pandemic Placeholder Vehicle" or PPV.

So what is a PPV? Basically it is a ten, fifteen or even twenty-year old (or older) used car, truck or SUV that is still in good, reliable condition, but has depreciated to a point where its price isn't impacted much by supply chain and inflation issues.

Now if your ego swells in direct proportion to how new your car is, this may not work for you. But if you don't mind if your neighbor has a much newer car than you, this is a viable option that opens up some interesting and affordable possibilities.

This idea came to me during the pandemic when I would doom-scroll Craigslist just looking at the crazy used car prices. It was depressing at first, but after awhile a pattern started to emerge were really cheap, but interesting cars would pop up for sale at incredibly low prices. Their ads would be live for 12 to 24 hours (i.e. they sold quickly) before being removed by their owner, but they definitely seemed to be nicely maintained, yet seriously under valued... something I would certainly purchase.

So what do I consider to be an incredibly low price? Well it's based on an understanding of the real market prices of a specific used car, versus the seller's asking price. Most private sellers get it right or even ask too much, but every once in a while someone assumes their car isn't worth much, even thought its a one-owner, no accidents, always serviced at the dealership gem. In that case, depending on the model and year, A $2,500 car that should be $5000 would be an incredibly low price, or a $5000 SUV that normally sells for $9,000 would fit the definition too. Those would be PPVs that last 12 to 24-hours... maybe less in this market.

Another thing that stuck me was that prices like $2,500 or $5,000 are obviously well below that $33,000 average used car price, and if you live in a state like I do where you pay a 10% sales tax on used vehicles, the tax alone on that $33,000 average used car or the $48,000 average new car could easily pay the purchase price of some of the PPV cars I was stumbling across. Now again, the ego is a funny thing and not everyone will be okay with a $2500 to $5000 vehicle. However, some of those cars were not just good deals, but they were even cool in a funky used car way.

04:45 - Start with Local Craigslist

So here's what you do to find some PPV options near you...

Start by opening up your local Craigslist (or your favorite used car search app), select "owner" (you don't want dealer ads since their price is heavily marked up and they tend to repost the same car over and over), then scroll down and let Serendipity do its work.

I scroll down maybe 100 to 200 cars and that covers what has been posted within the last 24-hours. Your market may have more or less cars, but you get the idea. You just want to see the cars posted up in the last 24 to 48 hours because that is where you will find the best deals. And if you really want a used vehicle that falls into that good, fast and cheap category, you will do this a couple of times each day until you find something just posted that piques your interest and meets your needs.

Here are some examples of cars and asking prices that I found in one 20-minute search of my local Craigslist:

05:30 - Example Car #1 - 2002 Pontiac Trans Am - $15,000 asking price

This Trans Am with the WS6 Package featuring a 325-horsepower 5.7-liter V8 and a 6-speed manual transmission was capable of hitting 60-mph in less than 5 seconds. That's a lot of performance for a $15K asking price. This particular example was in nice condition and had only 88,000 miles, so very low miles for the year.

07:00 - Example Car #2 - 1997 Camaro Z28 30th Anniversary Edition - $6800

LT1 5.7-liter V8, Black, 6-speed manual, T-top, 95,000 miles (again, low for the year), nice condition. I first saw the ad for this car with an asking price of $8700. In less than a week the price was lowered to $6800 and it sold. This was a screaming good deal and the buyer was obviously motivated to sell quickly for some reason, but no matter the reason, this one offered a lot of bang for the buck. I would have been happy to drop $6800 on this.

09:25 - 1995 Pontiac Trans Am for $12,000

It must have been GM Muscle car week! This awesome Trans Am was a single-owner example with a low 41,000 miles, the LT-1 V8 and a 6-speed manual transmission with leather interior. Loved the green color!

09:55 - Example #4 - Meyers Manx-Style Dune Buggy - $13,500

I put this on the list because it caught my eye and I am a big fan of the original Meyers Manx dune buggies from the 1960s and 70s. I'm also an idiot. This particular example was a Manx-style copy of the original, built on an old VW chassis. These types of vehicles have gone up in value lately, but this was still an odd, funky choice that won't appeal to most people. I guess my lizard brain said yes without thinking. Happens often.

10:30 - 1985 Pontiac Fiero - $4,000 asking price

I really like the Fiero, but I wasn't a huge fan of the 4-cylinder engine that came in these cars. Still, this example came with the 5-speed manual transmission and it was in nice condition both inside and out. It had 137,000 miles from new, but the owner said maintenance was up to date and it runs great. A mid-engine car with a $4000 asking price? Not bad, and it sold in less than a day.

11:40 - 2003 BMW Z4 Convertible - $6000

Older German cars can have their share of expensive problems, but if this one with its lower horsepower 2.5-liter 6-cylinder and Automatic transmission could be an amazing deal if it passes a pre-purchase inspection. It has 122,000 miles (low for the year), appeared to be in good condition and came in a pleasing blue exterior color with grey leather interior and a black folding top. Not my favorite, but a lot of fun for the money if it passes inspection.

13:00 - 2005 Mazda 3 hatchback - $4900

This one-owner Mazda 3 caught my attention. It had only 115,000 miles, looked great in its red factory color and sat on tasteful aftermarket wheels. Inside it had a perfect interior, along with my preferred manual transmission option. This car had recent tires and maintenance, no accidents and included a complete purchase and service history.

When it comes to buying any used car, the most important thing is condition and this one was in exceptional condition. In this brief 20-minute Serendipity + Craigslist scroll down search, this was the car that had everything - one owner, low miles, up-to-date maintenance and a price that was affordable. I'm dumb and would likely have bought the Camaro, a Trans Am or the dune buggy, but this was probably the best PPV example out of all the cars I found because if offered a solid combination of price, condition, drivability and practical daily-driver function.

17:00 - 1977 Scottsdale C20 Chevy Pickup - $7,800

Mileage on the odometer was 50,000, but it probably flipped over at least once and maybe twice. Still, this was a cool pickup with a 350-V8, automatic transmission and rear wheel drive. It was really straight, no rust and was stored in a garage. Just a good basic truck for your home improvement projects and hauling needs. And a year from now when you project is complete, you can likely turn around and sell it for what you paid for it.

19:25 - 1999 Jeep Wrangler TJ Sahara - $6900

Cheap compared to similar wranglers, this Jeep TJ had a green exterior and came with a manual transmission and the straight 6-cylinder engine with 145,000 miles. With regular maintenance, these engines can last a long time. This one was for sale about 2-hours outside the Seattle metro area, so that may be why the price was a little lower compared to similar Jeeps. It also had AC, cruise control and a soft top.

21:50 - 1983 Ford Mustang GLX Convertible - $5,500

Very straight and clean, this Mustang convertible had an automatic transmission mated to a 6-cylinder engine. Not having the 5.0-liter V8 hurts its prospects, and the seller stated the AC was not working, so that's a negative. It looked really nice and straight, so that caught my eye at first glance. This one is a solid choice, but on second thought I would wait for something better.

22:45 - 1991 Honda Civic 4-door Sedan - $4,950

A 31-year old Honda Civic sedan with 75,000 miles in excellent condition? You don't see that every day. These were from an era when cars like this were light and fun to drive - perfect in town and very 90s (ideal for Radwood, prehaps?). Price is way over the Kelly Blue Book estimate, but that may not matter. These Civics offer excellent visibility out the windows while driving, and are perfect for everyday commuting while still getting 30-mpg in a semi-classic Japanese 4-door. It was certainly an interesting choice and I still can't get over the awesome condition. Very Cool! Sold in a few hours.

26:30 - Recap of Cars and the Serendipity + Craigslist Search

What follow is a quick recap of the cars found and which ones I think were the best deals - I also review the search process I use and how to identify a good car or truck. I also recommend a PPI or pre-purchase inspection whenever possible.

29:30 - Wrap Up

Start your Serendipity + Craigslist search today and keep it up over time. I think you will be surprised by the range of interesting PPV possibilities that show up and how cool and inexpensive they can be.