Quote:
Originally Posted by Truenorth00
It's a prediction based on inventory not building back. I don't buy it. If there's a recession, car prices generally will tank. And we're already seeing some very interesting behaviour from auto lenders that portends a coming glut:
https://twitter.com/GuyDealership/st...HlS8jZLxA&s=19 |
Yeah it's possible 2021-22 MY cars will be everywhere and cheap over the next 5 years. What happened in 2008-09 was that new sales were way down those years, so in 2010-11 when you're looking for something 2 years old, there was no stock. We might see that with 2023-24 MY cars.
But, if you are shopping at a major OEM with a financing wing, they will approve you for a loan bigger than your vehicle, this has happened in the past and I'm sure will again.
Example: You buy an $80k F150 and come back 2 years later with $70k owing and it's worth $60k. You trade in and refinance something new (must be new) like an Escape or something cheaper at $40k, but you walk out with payments on a $50k loan ($10k from the F150 value decline).
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