3 ms·
I think that the components being hoarded have little effect on the final car price, but are critical to the car working -- e.g. required but not sufficient. T
by bhouston 5y ago
I think that the components being hoarded have little effect on the final car price, but are critical to the car working -- e.g. required but not sufficient. These are like $0.50 microcontrollers or similar.
I think there isn't a bullwhip effect on batteries, which is the main cost associated with TVs.
- regularfry 5y agoUsed car prices probably will collapse, though.
- Spooky23 5y agoUsed car lenders will collapse. The 72 month loan for a $50,000, 2019 F-250 will be completely underwater, and the car owners may decide to literally send the cars “underwater” to get out of the loans.
- thechao 5y agoThis doesn't sound right? I thought the value of the collateral had no bearing on the loan, except as a condition for the lender to call the loan if the collateral loses too much value?
- Spooky23 5y agoIf a person owes $40k on an asset worth $30k, why would they keep paying? Based on what happened in places like California with mortgages, they will default one way or another.
- ahtihn 5y agoDefaulting has a cost though. If you default on your car loan, how likely is it that you're getting a loan for the next car? What kind of interest rate are you going to get?
- Spooky23 5y agoDepends. You can get a mortgage with a modest premium a year or two out of Chapter 13 bankruptcy.
- Scarblac 5y agoIn Europe at least, they'd still be on the hook for the rest.