Quote:
Originally Posted by DGthe3
Over those 5 years, there have been something like 20 million fewer cars sold than there normally would have been. That drives the prices up on nearly-new used cars, which in turn puts more pressure on slightly older cars, and so on and so forth until you have 20 year old trucks costing more than they should.
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Yes, that is certainly part of it. I don't know that you could consider the pre-crash high water mark of sales (where people bought new cars just because their home equity increased $20k a year, and they could easily refinance and spend the cash) as normal. Though for sure, after the crash, car sales over corrected to the downside for a time.
I still think current high prices have a lot to do with the old bubbles from 5 years ago being (at least partially) blown up again. The uptick in sales and per unit price of the last year or two has been associated with a simultaneous resurgence in sub-prime financing, and that is surely not a coincidence. So, if you are looking for a deal on a car, wait a couple years if you can, because when history repeats itself, the end will be the same just as surely as the beginning and middle are the same.
Quote:
Originally Posted by upflying
I wonder if Cash for Clunkers increased used car prices?
Ya think?
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It has certainly had an affect on used truck prices.
Quote:
Originally Posted by snizzle
How so?
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If you have to ask, you wouldn't understand.
