Huge bankruptcies for used car firms have exposed Wall Street’s entanglement with the sector. Far from derisking after the Great Recession, banks rebuilt the economy on obscure financial intermediaries that are now sinking.
Covid really messed up the used car market (no new supply for an while) and the used car prices are only beginning to look remotely normal. I bought a new car off the lot because the used car was 98% of the price, 2 years old. I can imagine that a lot of people are very underwater with repairs and such.
In Germany, new middle-range cars are just too expensive. So what happens is that companies get tax rebates if they give cars to employees instead of taxed salary, and these cars are sold a bit later on the used car market. This now covers around half of the market for more expensive cars, which covers maybe half of their running costs, and is nothing else than a government subsidy for the car industry - without that, they simply would sell less, and at a lower price. But there is never enough money for decent public transport or safe cycle paths.
Completely insane. It’s like listening to an indebted crack or cocaine addict rationalizing why he needs to spend all his money on the drug.
It tended to hit a lot of perfectly functional cars that were only a few years old. The collectors market from around 2003 to 2008 has been pinched ever since.
Covid really messed up the used car market (no new supply for an while) and the used car prices are only beginning to look remotely normal. I bought a new car off the lot because the used car was 98% of the price, 2 years old. I can imagine that a lot of people are very underwater with repairs and such.
In Germany, new middle-range cars are just too expensive. So what happens is that companies get tax rebates if they give cars to employees instead of taxed salary, and these cars are sold a bit later on the used car market. This now covers around half of the market for more expensive cars, which covers maybe half of their running costs, and is nothing else than a government subsidy for the car industry - without that, they simply would sell less, and at a lower price. But there is never enough money for decent public transport or safe cycle paths.
Completely insane. It’s like listening to an indebted crack or cocaine addict rationalizing why he needs to spend all his money on the drug.
Also, Cash for Clunkers eliminated a ton of the “so cheap it’s dangerous” cars that existed before.
I think that was 15-20 years ago though?
I remember seeing the posts on jalopnik and elsewhere of the great cars that were being crushed. RIP.
It tended to hit a lot of perfectly functional cars that were only a few years old. The collectors market from around 2003 to 2008 has been pinched ever since.
Good. Hoarders should be under treatment, not encouraged.