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1   SunnyvaleCA   2020 Sep 8, 1:16pm  

What is the stock of new cars/trucks? Maybe people are bidding up 2-year-old models if they can't buy the exact new model that they want.
2   AD   2020 Sep 8, 1:54pm  

.

I think this is a lot to do with the younger generation (20 to 40 years of age) are more thrifty and savvy as the older generation (ie.. Yuppies of the 1980s/1990s).

The younger generation is not as much a consumer or concerned about the image of being seen in a brand new BMW, etc. They are more practical in some ways as far as financial decisions. Just look at Ralph Lauren stock.

So they're willing to buy a 3 year old car that was leased instead of a brand new one. Especially if the seller (i.e., Auto Nation, etc.) of the car offers a 1 year warranty on it.

.............
4   Shaman   2020 Sep 8, 4:08pm  

The reason for this is super simple:
It’s a recession and people are tight on money right now. Lots of people who recently bought or leased new vehicles are selling them or turning them in and getting beaters and hooptys to get around what remains of their towns. They’re out of work or their business is shut down or has been shut down or maybe their hours were cut. Either way, people are feeling the pinch and they’re looking hard at used cars to fill the gap in their finances.
5   AD   2020 Sep 8, 4:27pm  

Shaman says
It’s a recession and people are tight on money right now.


I agree, but before the current recession that the younger generation (20 yr to 35 yr) were thrifty and had a lot different consumer habits than Generation X and the Baby Boomers.

Just like at Ralph Lauren stock price over the last 20 years and see a trend there. Its going the way of other logo-brand clothing.

,
6   EBGuy   2020 Sep 8, 4:37pm  

Shaman says
It’s a recession and people are tight on money right now.

As presented in the article, families who previously relied on Uber or public transit are now buying second (hand) vehicles.
7   SunnyvaleCA   2020 Sep 8, 4:50pm  

ad says
I agree, but before the current recession that the younger generation (20 yr to 35 yr) were thrifty and had a lot different consumer habits than Generation X and the Baby Boomers.
Few in the younger generation have much interest in cars (trucklets) other than getting from point A to point B with a minimum of effort. I can hardly blame them: vehicles are numb, driving regulations are onerous, and bumper-to-bumper traffic isn't much fun no matter what.
8   AD   2020 Sep 8, 5:17pm  

SunnyvaleCA says
Few in the younger generation have much interest in cars (trucklets) other than getting from point A to point B


Exactly...I've heard young hipsters make fun of people who were of their same age at least 20 years ago and who viewed their BMWs and Mercedes as status symbols or vanity displays... I agree, they are more utilitarian and practical and rather spend the money going to Thailand, Costa Rica, on a new Giant mountain bike, on an Apple Watch, on Cross Fit training sessions, etc.

I keep saying that "demographics is destiny" as far as California,etc and illegal immigration .... I knew 20 years ago California, Connecticut, etc. would go from being #1 in public schools and SAT/ACT test scores to being a shit hole....

But also I've been saying as far as megatrends that the younger generations (20 years to 35 years) are a lot different as far as spending or consumer habits.... Gen X and Baby Boomers are not as much different....

,,,,,,,
9   Shaman   2020 Sep 8, 5:31pm  

ad says
on a new Giant mountain bike


Might do that myself soon. My weekend was spent mountain biking with a friend and I did a crossfit workout yesterday. Solid gen x here tho. I just have a bit more time lately to be active
10   Booger   2020 Sep 8, 6:03pm  

Everything already mentioned above, AND the moritorium on repos, AND all the auto factory shutdowns. Once car production ramps back up and the repo tsunami hits, which will both probably happen at the same time later this year, used car prices should drop to normal levels.
Auto manufacturers just stopped making all those ventilators that will never get used, and will start making a lot more new cars. Used car prices can only go so high because you can usually get a new car. Except during rush hour, I am not seeing any difference in traffic.

And yes I know this because I am about to junk a car that I am not going to replace any time soon.
11   HeadSet   2020 Sep 8, 6:23pm  

Don't forget, Hertz dumped 50,000 late model cars on the market.
12   Al_Sharpton_for_President   2020 Sep 8, 7:22pm  

Wolf has a story on this. He does moderate comments, and runs an echo chamber, FYI. Questioning the wisdom of the lockdown will get you in permanent moderation jail, and comments contradicting his views will never see the light of day.

https://wolfstreet.com/2020/09/08/used-vehicle-wholesale-prices-spiked-for-months-but-turned-south-in-late-august-as-wholesale-volume-plunged-again/
13   zzyzzx   2020 Sep 9, 5:22am  

APOCALYPSEFUCKisShostakovitch says
POLICE AUCTIONS ARE YOUR FRIEND!


As we have already established, even those cars are overpriced:
https://www.youtube.com/c/hullinger/videos
15   georgeliberte   2020 Sep 9, 8:44am  

If you qualify: USAA .COM car buying services, great deals and service, new or used.

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