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Why are used cars so expensive right now?

thehustle.co

41–50 of 110 posts

Re: Why are used cars so expensive right now?

#41

So cars, wood + building supplies, labour, food, shipping all dramatically increased. What’s the best hedge against hyperinflation? Crypto? Ether?

Equities and real estate. Housing and cash flows never go out of style.

This is not quite correct. In high inflation credit markets disappear. 80%+ of housing is bought on mortgages. If 80% of housing demand disappears you get a 2008.

Re: Why are used cars so expensive right now?

#42
post #39

Earlier quoted context omitted.

I’ve had folks who found out I’m about to take delivery of a Model Y offer me ~$10k over list if they can buy it immediately after I take delivery. It’s insane. (we’re keeping it of course)

Haha. Mine is a Model S. It's my baby so of course I couldn't sell it. I had just posted it for shits and giggles at a ridiculous price but I guess people are desperate. I'll sell it once my Cybertruck preorder is ready! haha`

[deleted]

Re: Why are used cars so expensive right now?

#43

Earlier quoted context omitted.

What about land? My house is relatively inexpensive, the land it's on is worth like 10x as much.

The supply for land isn't great. The demand tends to grow over time. If there was a "new land" factory it could help!

There is: (https://www.universetoday.com/144108/a-brand-new-island-in-t...) it's just somewhat slow by human standards.

Re: Why are used cars so expensive right now?

#44
post #27

Are the blue book sites up to date with these current trade in value trends, or is there a better place to reference prior to trade in?

From what I'm seeing in relatively extensive research lately, the KBB doesn't seem to reflect the difference much, especially for trade-ins. It could be that dealers aren't willing to put up with the inflated prices for trade-ins, but either way you're almost guaranteed to get a hefty bit more selling privately.

Re: Why are used cars so expensive right now?

#45
post #9

Earlier quoted context omitted.

> What is the reason new housing starts are not keeping top with demand? https://en.wikipedia.org/wiki/Civil_Rights_Act_of_1968#Title... But especially since https://en.wikipedia.org/wiki/Equal_Credit_Opportunity_Act e: downvoters know I'm right ;) https://fred.stlouisfed.org/series/OEHRENWBSHNO https://i.imgur.com/kP8ugvH.png

You add nothing to the conversation. Make an actual argument. Are you saying that the legislation reduced the level of housing created? Are you saying that redlining increased housing stock? Are you saying that black people having equal access to credit made white people less likely to build houses? Linking to Wikipedia with a wink and a nod to racism is not an argument. Be explicit with your argument here.

There was an entire system built around keeping certain people out of many homes and many jobs as possible. When those things became unlawful, do you think the people responsible for the old system would immediately change their mind about the whole thing and give it up, or do you think they would find esoteric ways to maintain the same effect? Do you think they would admit it if they did? Learn to read between the lines of the world around you.

Re: Why are used cars so expensive right now?

#46

Earlier quoted context omitted.

Equities and real estate. Housing and cash flows never go out of style.

This is not quite correct. In high inflation credit markets disappear. 80%+ of housing is bought on mortgages. If 80% of housing demand disappears you get a 2008.

The 2008 global financial crisis was due to a compete failure of risk management in originating mortgages and packaging them as mortgage backed securities. In short, the industry was scraping the barrel and shoveling shit to investors. “If they can fog a mirror, fund the loan” was a phrase common at Countrywide. Lending standards are comparatively tight now, no NINJA loans [1]. The credit market will tighten, but housing demand won’t evaporate, and investors are starved for yield.

In high inflation environments, you want to lever up with debt to fund investments because your debt will be inflated away over time while you capture cash flow or asset appreciation. High yield debt (“junk bonds”) are also a great play for such a macro environment.

[1] https://en.wikipedia.org/wiki/No_income,_no_asset

(not investing advice, family members were involved with regulators and cleaning up doing put backs for deficient notes)

Re: Why are used cars so expensive right now?

#47
post #3

Objectively just about everything is abnormally expensive right now. Not just in the USA, but also Canada and Australia that I know of. Maybe other places as well.

Same in Europe. Here in The Netherlands we pay 10 dollars for one gallon gasoline. Historical height.

Re: Why are used cars so expensive right now?

#48

So cars, wood + building supplies, labour, food, shipping all dramatically increased. What’s the best hedge against hyperinflation? Crypto? Ether?

Stocks, real estate are the best imho. Crypto has too much volatility, low correlation. BTC fell in half. not a reliable hedge.

Re: Why are used cars so expensive right now?

#50
post #28

Now's the time to sell a car if you have an extra to spare. One of the few times in history when cars actually appreciate. A car I bought for 53k 4 years ago I could've sold for 55k last week until I got cold feet. lol

Just did and got a good price. The only problem is I'll probably need to buy another once Covid calms down and we go back to work. I'm going to try to use public transit and cycling for a bit, but the reality is I'll need to get another car within a year. Hopefully someone has a small, cheap electric by then.
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