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Most of these cost more than $4,000 to make: https://sfbay.craigslist.org/search/cta?min_price=200&max_price=200 https://sfbay.craigslist.org/search/cta?min_pr

by rz2k 7y ago

Most of these cost more than $4,000 to make: https://sfbay.craigslist.org/search/cta?min_price=200&max_price=200 https://sfbay.craigslist.org/search/cta?min_price=200&max_pr... Some design or manufacturing flaws can lead to auto makers paying someone to dispose of an otherwise brand new car. Sometimes, such as when they've poorly forecast demand, selling their inventory at a loss is a smaller loss than paying for disposal. Other times they will destroy functioning, new vehicles if that's what's necessary to maximize total revenue.

jjeaff 7y ago
Regulations like emissions limits can also cause this. GM has supposedly been know to sell some of its electrics at a loss simply to help meet the ratio requirements of the EPA so they can sell more big vehicles.
- salawat 7y ago
  Again, this is a consequence of the statement I made before regarding >the financial industry converging on whichever form most effectively sidesteps the current regulatory regime. I should probably have phrased it to industry in general, but regardless, I stand by my original point. The automotive industry accepts taking a loss through sub-optimal implementations of regulatorally incentivized models in order to optimize on the most profitable model segment. Capitalism will converge in the direction of a net negative naturally without active efforts to reign in it's tendency toward fiscal optimization at all costs. I'm not even being controversial and saying socialism/Marxism is the way. (They aren't; in case anyone is wondering). I'm just pointing out what actually happens.
salawat 7y ago
With Craigslist you're generally not looking at a good representation of the "well-equipped or dispositioned" seller; and given the market in the SF Bay area, you're optimizing for one of the highest friction automotive ownership locales in the United States. If anything you're Also to a degree proving my point on the market at large being skewed toward larger actors; as the capability of the "new entrant" to extract value from the market is significantly diminished. Get that same car to a dealership, and they might even be able to extract even more value for it. Also, if you're taring the sale at last seller, that's not entirely fair. First sale is what we're discussing, generally represented by first change of hands after factory->reseller.

by rz2k 7y ago

jjeaff 7y ago

Regulations like emissions limits can also cause this. GM has supposedly been know to sell some of its electrics at a loss simply to help meet the ratio requirements of the EPA so they can sell more big vehicles.

salawat 7y ago
Again, this is a consequence of the statement I made before regarding >the financial industry converging on whichever form most effectively sidesteps the current regulatory regime. I should probably have phrased it to industry in general, but regardless, I stand by my original point. The automotive industry accepts taking a loss through sub-optimal implementations of regulatorally incentivized models in order to optimize on the most profitable model segment. Capitalism will converge in the direction of a net negative naturally without active efforts to reign in it's tendency toward fiscal optimization at all costs. I'm not even being controversial and saying socialism/Marxism is the way. (They aren't; in case anyone is wondering). I'm just pointing out what actually happens.

salawat 7y ago

With Craigslist you're generally not looking at a good representation of the "well-equipped or dispositioned" seller; and given the market in the SF Bay area, you're optimizing for one of the highest friction automotive ownership locales in the United States. If anything you're Also to a degree proving my point on the market at large being skewed toward larger actors; as the capability of the "new entrant" to extract value from the market is significantly diminished. Get that same car to a dealership, and they might even be able to extract even more value for it. Also, if you're taring the sale at last seller, that's not entirely fair. First sale is what we're discussing, generally represented by first change of hands after factory->reseller.