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Historically, car values underwent significant depreciation over time and loans that went delinquent were for vehicles that were "underwater"- their value was l
by kevstev 5y ago
Historically, car values underwent significant depreciation over time and loans that went delinquent were for vehicles that were "underwater"- their value was less than the loan. Its pretty much unprecedented for the value of a vehicle to actually increase at any point in time over its life, and how long this anomaly will go on for is very uncertain- another way to put it is that you don't change all of your process and accounting norms because of a temporary (at least as we think for now) supply issue.
- Y_Y 5y ago> you don't change all of your process and accounting norms because of a temporary (at least as we think for now) supply issue Is this why some people stick insist on making payments by sending cheques through the post?
- eru 5y ago> [...] you don't change all of your process and accounting norms because of a temporary (at least as we think for now) supply issue. Yes. And for the appreciation to persist, the supply chain issue wouldn't just have to persist, but get worse. Current prices reflect expected supply chain issues. That's both prices for new and used cars.