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Zimahl | 5 years 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.

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hourislate|5 years ago

Leases 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.

ASinclair|5 years ago

There 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|5 years ago

Because 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.

adventured|5 years ago

They'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...

Guest42|5 years ago

I think that lending will be tightening up as well.

vkou|5 years ago

If 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...