Originally Posted by
Hyper
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Today Elon Musk, a car guy, basically agreed with banking analysts that 2023 will see a crash in the used car market via mechanisms similar to that which created the housing market crash in 2008.
At issue is new used cars (one or two years old) but the effect could ripple down to old used cars.
Details:
1) New car prices were inflated during covid supply-chain disruption.
2) Demented bankers wrote inflated loans, more than the true value of the underlying car asset.
3) Car buyers, lots of them, are loan defaulting in a down economy.
4) Banks repossess the cars, lots of them, but hold them to delay their actual loss until...
5) Bank regulators tell them to move the non-performing (junk) asset off the books and report the loss.
6) Banks then attempt to sell the cars, lots of them, crashing the price.
So, yeh, don't buy that '95 840 just yet.
Sure, this might be true, but I don't see how this affects a 25+ yo classic BMW. There aren't many around, and demand is not going to drop off for E31s when supply of used civics and camrys increases. Its like saying that 250GTO is gonna loose its value with the market.
E36/8 2000 M Coupe Cosmos Black/Black
Shark, Conforti CAI, B&B Exhaust, H&R, Bilstein, AKG Subframe/Diff, UUC TME Red/Caps, Swapped Front Hats, Ice>Link.
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