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So... you got more for your used car and paid more for your new one. Which is exactly the point being made by the parent comment that you can't capitalize on t
by heliodor 5y ago
So... you got more for your used car and paid more for your new one.
Which is exactly the point being made by the parent comment that you can't capitalize on the upside. You'd have to sell and step out for a while.
- dahfizz 5y agoUsed cars used to be worth x% of a new car. Today, they are worth x+y% of a new car. If you trade up now, you will pay less for the new car than if you traded up two years ago. Similar situation for houses. Even if we assume all houses have inflated by the same rate, you can still downsize and cash out. Your existing $600K house is inflated 25% and you can sell for $750k. You downsize to a $400k house which is inflated to $500k. You oversold for $150k, but only overpaid by $100k and you pocket the difference.
- malfist 5y agoWhat do you mean I can't capitalize on the upside? Sure, my purchase costs went up some, but no where close to the additional value I got over normal for my sale. Put it this way, I paid a few hundred dollars, maybe a thousand dollars more for the car than I would normally, but I sold my old car for thousands more than I normally would have been able too. That's capitalizing on the upside for sure.