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Why would used cars drop in price? Since no one is buying new cars there's no supply of used cars. Lower supply means increased prices but demand is probably
by Zimahl 6y ago
Why would used cars drop in price? Since no one is buying new cars there's no supply of used cars. Lower supply means increased prices but demand is probably down as well so almost no change.
- Guest42 6y agoI think that lending will be tightening up as well.
- vkou 6y agoIf you're buying a used car from a private party, you're not doing it on financing. If you're buying a used car from a dealer, with financing, you must be truly desperate. A lot of people are desperate, though...
- loeg 6y agoWhen I bought my current used car, in cash, the dealer offered it on financing for 0% or 0.9% or something very low — no impact on the selling price. It wouldn't have been a terrible decision to take the super low interest loan and put the purchase money into my investment portfolio instead (just another form of leverage). I paid cash anyway, because I went in intending to, but characterizing all financing as extremely desperate is misguided.
- beefalo 6y agoCredit unions will finance used cars at 2%
- ASinclair 6y agoThere is a big supply of used cars coming. Rental agencies are offloading cars because they have storage issues with nobody renting their vehicles. However, lots of the car auctions are closed so that could prevent the prices from coming down.
- soperj 6y agoBecause no one is buying used cars either, and people who can't afford the car they have are selling them. Supply/Demand when there is no demand.
- hourislate 6y agoLeases come due. Cars hit the used market. You also have rental companies dumping cars onto the market since business has collapsed. Hertz might be going into bankruptcy. Repo's are another thing to consider along with private sales when people can't afford them or need to raise money.
- adventured 6y agoThey're actually about to reduce used vehicle supply to artificially inflate market conditions above where they're going to sink to. The corporate gangsters in Detroit are working on Cash For Clunkers part 2 (which will harm the poorest vehicle buyers the most over the span of years as supply is reduced, just as it did last time). https://www.barrons.com/articles/get-ready-for-mega-cash-for-clunkers-morgan-stanleys-adam-jonas-says-51587295800 https://www.barrons.com/articles/get-ready-for-mega-cash-for...