Quote:
Originally Posted by chassis
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A similar price imbalance took place after the tail end of the great recession, slow recovery led to reduced demand and production of new vehicles. this lasted a few years so then there were fewer cars in circulation. With less sold in prior years, fewer entered the used market 2-3 years later. Used cars became more valuable. This lasted for about as long as reduced production period (~2-1/2 years).
I think we will see the same thing again, there will be a shortage of used 2020/2021/2022 cars coming into the market for another 2-3 years, keeping value high for all used cars by simple supply/demand economics.
There will be fluctuations, and I don't think the current value will stay so inflated. some of that valuation is driven by emotions. There will still be a shortage of newish used cars in the market between now and 2-3 years from now, regardless of emotional factors.
There were some brands that actually kept up pace pretty well, so the shortage isn't as bad as some believe, this will temper the differential, and when emotions settle, simple supply/demand math will take over.