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The empty shelves will cause cost-push inflation, as people try to buy cars from a smaller available pool (e.g. substitute new cars for used). The price mechani
by hyko 5y ago
The empty shelves will cause cost-push inflation, as people try to buy cars from a smaller available pool (e.g. substitute new cars for used). The price mechanism for cars will respond to a shortage of cars.
Edit: it’s maybe bad luck that this could coincide with a demand-pull inflation pressure, as people ease back into personal transit.
- foobarian 5y agoCue stock drop people buying up all new cars and selling on Ebay for double...
- olyjohn 5y agoNot only that, but the used car market is going to explode. I knew my yard full of old crappy cars would be worth something some day!
- lotsofpulp 5y agoI’m hoping my 2003 car does not get stolen.
- xxpor 5y agoIt already has. Prices are up enormously.
- SyzygistSix 5y agoJaguars And Range Rovers aren't "I need a car" cars. They are optional luxury goods. The lack of new Range Rovers and Jaguars won't keep anyone from getting to work or the store. So I don't think the effect will be nearly as drastic as it would be if the number of Camrys and Hiluxs had to be curtailed.
- nottorp 5y ago... but guess who's next?
- hyko 5y agoWait, so you think if a Veblen good becomes more scarce there will be no price increases around it? won’t keep anyone from getting to work or the store I can tell you that luxury vehicles transport plenty of people to work or the store just fine, and if they break down, written off, or are stolen they require replacement just the same.
- imtringued 5y agoYou're right, people buy luxury cars for the exclusivity and a shortage can only make the products even more exclusive.
- baq 5y agoUsed car price charts are going vertical all over the world.
- Arrath 5y agoSold my truck early last year, oops.