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What would it look like if asset speculation hit the used car market? Would it look much different than this? Normally that would be a poor investment because
by tobyjsullivan 5y ago
What would it look like if asset speculation hit the used car market? Would it look much different than this?
Normally that would be a poor investment because same-car prices steadily trend downward. But if the market changed such that used car prices were increasing - say, due to a shortage of new car availability - then would some investors be inclined to start hoarding used cars?
- mpol 5y agoIf prices are increasing faster than the maintenance that is needed :) Hoarding used cars for a slightly long time will have them deteriorate somewhat. Some will have small issues, some might have bigger. Theoretical value might be higher, but when selling time comes the practical value might be a disappointment. Getting them ready for sale will have costs. Car dealers just go for fast profit, like they always did.
- rossdavidh 5y agoAll true, but I feel compelled to point out that houses need maintenance as well. But, as a percentage of the price, probably not as much.