I was looking at used Evs and I keep seeing 1 or 2 yr old VW id4s with very little miles for like $25-30k. Is there a reason why they lose their value so quickly? I even saw a 2022 Pro S with 2k miles for $28k. Someone basically lost $20k driving it off the lot 😓
Not losing 5k to drive a car off the lot is the historical weirdness. In the 80s and 90s basically you lost 25% on day 1.
So that part seems normal. Why we had used cars going for over MSRP was just due to shortages.
I’m hoping the car bubble is over.
Pre-covid you couldn’t buy a vehicle, drive it for a year, then sell it for a profit.
I knew of guys with a new vehicle continually on order. Because they knew when the next one showed up, they could sell the current one, order another new one, and make money doing it.
I knew a guy driving a vehicle for a dealership because they had it sold out of the country. It had to be insured and driven for a number of months before it could be exported.
It reminds me of the housing bubble where people had multiple new homes being built at the same time. They lost it all when it crashed and they couldn’t make mortgages on 4 houses.
And speaking about houses. My wife’s new car cost more than our first condo.