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It's hard to imagine anything other than a flood of used cars at some point in the near future. It sure feels like a lot of people are going to be cash-poor, an
by japhyr 7y ago
It's hard to imagine anything other than a flood of used cars at some point in the near future. It sure feels like a lot of people are going to be cash-poor, and need to sell whatever they can. I have no idea how lenders approach repossessions when they might be stuck with a vehicle they can't sell because of a glut on the market.
We were going to replace our 15 and 20 year old vehicles this year, but we're holding off for now. We're hardly driving anywhere now, and who knows what the auto marketplace will look like over the next 6-18 months.
- ghaff 7y agoMaybe? Most people need their cars. It would seem that the far more common pattern would be to hold off replacing a used car that's still serviceable.
- jedberg 7y agoIf they don't have a job to get to, they might need the money a lot more than the car. :(
- jedberg 7y agoYou can get some amazing new car deals right now (the sellers are desperate for obvious reasons) and load rates are super low too. If you need a new car and can still afford it, now seems like a great time to buy. If you're looking for a used car, the consensus in this thread seems to be to wait a couple months as the market is flooded.
- Melting_Harps 7y ago> You can get some amazing new car deals right now (the sellers are desperate for obvious reasons) and load rates are super low too. I was going to say the same thing, Nissan has been in dire straights since the whole Ghosn fiasco [1] (a very interesting read into the shady business practices, geopolitics and nationalism within the International Auto Industry) and are giving out sweetheart deals. A family member just upgraded to a new Altima with $0 down and 3 months covered, free delivery costs and because of their stellar repayment on the loan got instantly approved on a 1% interest rate on financing through Nissan itself. I will say this as a person that worked in the Industry, specifically at VW during the diesel-gate scandal and buy-back program: VW never went that low on financing to sell cars as they were hemorrhaging Billions and their execs were being hunted and getting thrown in prison. If we 'did our jobs correctly' in handling the customers most would just use their most of their refund checks as down payments and buy another one with a 5%+ 'VW loyalty' rate. This is a buyers Market, even Toyota [2] is asking for lines of credit right now things are so bad! I'm personally holding out for details from Elon/Tesla where the Cybertruck is being made to determine my next car. Giga Berlin is apparently going to be a Model Y factory to start. 1: https://www.bbc.com/news/world-50964040 https://www.bbc.com/news/world-50964040 2: https://www.bloomberg.com/news/articles/2020-03-27/toyota-said-to-seek-9-billion-credit-line-from-two-japan-banks https://www.bloomberg.com/news/articles/2020-03-27/toyota-sa...
- nostromo 7y agoOn the other hand, are people going to crowd into busses and onto trains right after a pandemic?
- rootusrootus 7y agoWe won't really know until it happens, of course, but perhaps the glut will be new cars, not used -- if a lot of people change their purchase decision from a new car to a used one to save a few bucks.
- jedberg 7y agoThat's fine though. The main reason to buy used is to save money, but if the new cars drop to used prices, then you get a new car and save money!
- gruez 7y agoNew car production can be stopped. Vehicle repossessions/auctions can't. For that reason alone there shouldn't be a glut of new cars.