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It doesn't. Dude's riding his hobbyhorse into a wall. Most cars that left the road were the oldest and heaviest. New cars bought under that program tended to b

It doesn't. Dude's riding his hobbyhorse into a wall. Most cars that left the road were the oldest and heaviest. New cars bought under that program tended to be economy cars and are already a decade+ old. To suggest that it took inventory off the road affecting today's markets doesn't hold water. The biggest issue is that car companies make more money off reselling the loan than they do off the car. Years ago we tried to buy a Subaru in the NYC metro area in all cash and were continuously turned away. Dealers didn't make money off the cash sale, they were spiff'ed off the loan. We had to take the loan and then pay it off in order to get the car. Since then it's gotten worse. Expensive cars (luxury, trucks) are sold with 72 month loans and are underwater shortly after purchase. It's been a race to the worst terms and empowering the worst purchases to the worse equipped buyers. I'm continuously amazed it's gone on as long as it has.

rrrrrrrrrrrryan 4y ago
Ironically, luxury car dealerships will have no problem taking your cash. There are lots of people that are rich enough to insist upon buying a new car with cash, but those people generally don't drive Subarus.
throwaway0a5e 4y ago
>Most cars that left the road were the oldest and heaviest. Pure fantasy. Old commuter cars and family haulers were what was removed. Stuff like 90s Suburbans and F150s got turned in at a much lower rate than things like Cavaliers and Tauruses. Remember, times were not great back then, trucks and SUVs are useful vehicles. You're not gonna get a lot of people who have old ones trading them in on a Camry because that's a net downgrade in capability. And the SUV craze was new enough that the trucks and SUVs that had been bought frivolously were still mostly worth enough to be unaffected. >To suggest that it took inventory off the road affecting today's markets doesn't hold water. It definitely put the used car market into a state it could have not otherwise gotten into. Whether it ever "recovered" is a matter of opinion. Many people say the private party shitbox market has never been the same but I personally think that's rose tinted glasses.
twox2 4y ago
Surprised to hear you were turned away. Usually they will take your money, just not give you any sort of deal. Either way, I think these days it makes little sense to buy new cars of the lot. If you want a new car, just go on the website and build out what you want, pay, and it's there 2-3 months later.
- dbreunig 4y ago
  What I was told by a friend at an OEM is that lower-end the demand for lower end Subarus and Hondas was so high in the NYC area that it made sense to turn down the all cash offer as they'd likely sell the car with a loan the next day.
  - twox2 4y ago
    That's so frustrating. I'm in NYC and had a crappy experience shopping for cars as the pandemic was taking off. The dealers seems dis-interested, but they would certainly sell a car for their asking price. I ultimately ended up going with a cheap old used car that I bought directly from the previous owner. If I get to a point where I want a new car, I think I'll just order it.

rrrrrrrrrrrryan 4y ago

Ironically, luxury car dealerships will have no problem taking your cash. There are lots of people that are rich enough to insist upon buying a new car with cash, but those people generally don't drive Subarus.

throwaway0a5e 4y ago

>Most cars that left the road were the oldest and heaviest. Pure fantasy. Old commuter cars and family haulers were what was removed. Stuff like 90s Suburbans and F150s got turned in at a much lower rate than things like Cavaliers and Tauruses. Remember, times were not great back then, trucks and SUVs are useful vehicles. You're not gonna get a lot of people who have old ones trading them in on a Camry because that's a net downgrade in capability. And the SUV craze was new enough that the trucks and SUVs that had been bought frivolously were still mostly worth enough to be unaffected. >To suggest that it took inventory off the road affecting today's markets doesn't hold water. It definitely put the used car market into a state it could have not otherwise gotten into. Whether it ever "recovered" is a matter of opinion. Many people say the private party shitbox market has never been the same but I personally think that's rose tinted glasses.

twox2 4y ago

Surprised to hear you were turned away. Usually they will take your money, just not give you any sort of deal. Either way, I think these days it makes little sense to buy new cars of the lot. If you want a new car, just go on the website and build out what you want, pay, and it's there 2-3 months later.

dbreunig 4y ago
What I was told by a friend at an OEM is that lower-end the demand for lower end Subarus and Hondas was so high in the NYC area that it made sense to turn down the all cash offer as they'd likely sell the car with a loan the next day.
- twox2 4y ago
  That's so frustrating. I'm in NYC and had a crappy experience shopping for cars as the pandemic was taking off. The dealers seems dis-interested, but they would certainly sell a car for their asking price. I ultimately ended up going with a cheap old used car that I bought directly from the previous owner. If I get to a point where I want a new car, I think I'll just order it.