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bolido_sentimental  2yr ago (text post)   3861 thread views

Small-Scale Question Sunday for September 25, 2022

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

Posted because I didn't see Zorba post one today. Feel free to delete if that's an issue.

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How long before car prices return to normal?

I’ll go against the grain and say sooner rather than later. The dynamics of the car market are actually quite similar to GFC housing market. Shit loans leading to cascading forced selling is something that could certainly happen

New cars: one more year, maybe. Production is already ramping up

Used cars: two more years of hell-market, at least. The worst is yet to come.

Why do you think it would take so much longer for the used car market to normalize?

Used car supply is always 3 years behind the new car supply. Since there are very few new cars being created in 2020-2022, the used car supply will not begin to recover until 2022 cars start being sold back.

As it is now, even the yellowest of lemons (PT Cruisers) are being sold at exorbitant prices because of lack of supply, so outlook is most certainly bleak for the near future.

Perhaps this is the new normal

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