The real problem will be when supply normalizes, used cars return to their sub-2...

eru · on Nov 11, 2021

Presumably, people know about this possibility, and it's reflected in prices already?

For many people a car is a productive asset. As in, they need it to do their jobs. Even if it's just to commute to work.

So 'overpaying' for a car now might still be the right thing to do, even if you know full well that it's gonna lose a lot of value in a year or less.

Skunkleton · on Nov 11, 2021

I wonder what gap insurance is like these days. I can't imagine that it hasn't gone up in price significantly.

chadash · on Nov 11, 2021

Probably the opposite. If the car is worth more than you owe you shouldn’t need gap insurance.

BoorishBears · on Nov 11, 2021

You're thinking too short-term.

If you accept the thesis we're in a bubble that will deflate, soon cars will be worth even less than they were during the run-up, so the difference will go from positive to deeply negative in a hurry.