The real problem will be when supply normalizes, used cars return to their sub-20k wholesale price, and a bunch of people are underwater on bad loans for (once again) depreciating assets.
Have fun with that everyone!
Have fun with that everyone!
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.
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.