View Single Post
      09-15-2020, 01:53 AM   #223
autoart
Colonel
231
Rep
2,044
Posts

Drives: 2009 335i e90 M
Join Date: Oct 2010
Location: socal

iTrader: (8)

I'll throw in my .02 cents. There are a few reasons I see as to why used car prices are high:
Unemployment money: I have heard of quite a few people putting $1200- $2400 as down payment. The same amount that people got from the government. A lot of people did not even need the extra money, so it was like a bonus. An extra $300-600 every week on top of unemployment for what 4 months. Thats $4,800-9,600 for each person. What if you and your spouse where unemployed? double it.
Now that money is suposeto to to rent, morgage etc. but if your not paying your your rent and morgage etc. extra money!!
Low intrest rates: alot of car com. have them, more car for less money. People are refi. their home loans and pulling money out or just saving the money from the low rates.
Covid 19: People don't want to use Uber/Lyft anymore. They dont want to use public transportation. They would rather have their own car now.
Low supply:With a lot of parts made in China and others new cars/ trucks are out of stock. you go to the dealer for a new car/truck and theirs only a few left. The dealer will want top dollar for them. When the new are gone, then they sell used. Which raises the price on used cars/trucks.
Looking back it seems people miscalculated the goverment injection, lower supply, higher demand.
I also thought the supply would be the same and the demand would fall off the clif. I also thought people would be selling what ever they could stay-a-float. I just think its going to happen much latter now. Maybe 2nd quarter of 2021. Thank you

looking back it seems