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Comment by toomuchtodo | Hacker News Reader

Automakers charge what the be auto market can support. They can limit supply to keep prices high. Used car market is limited by new car market sales. Structural demographics means there are less workers every year (auto repair labor costs). Costs are unlikely to decline.

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Used car market is limited by new car market sales.

I think the used car market might be crazy right now.

When COVID hit and everyone was clamoring for used cars because new cars couldn't be made/imported, I took my wife's low-end car to CarMax for an appraisal. It was a fair offer, but I didn't bite.

All these years, and 25,000 miles later, I brought the same car back to CarMax a couple of weeks ago, and the appraisal was almost double what they offered the first time. This time I let them have it.

I don't see a lot of talk about used car demand anymore, but based on my experience, I think it's still high.

Used car prices are dropping, but still very elevated from pre-pandemic: https://site.manheim.com/en/services/consulting/used-vehicle...

I think the used car market is suffering from a few things.

Some states implemented "extreme" used car sales taxes (Ga)

Cash for clunkers,zirp, caused a surge of new cars after 2008.

Cars produced after 1996 (OBD2) and 2003 (wideband, multi fuel), and 2008 (8 speed zf transmissions with full lockup - and dsg for sports cars) are incredibly reliable - especially with a 100k mile warranty and service packages.

Then you have the 2017 tax cuts, compounded with 2020 chips shortage.

Somewhere you also have ev incentives

> Structural demographics

Is that an euphemism for "refusing to pay a livable wage"?

Maybe it means fewer people being born in car-producing and exporting countries.

It is wages accelerating to a living wage and past that because of the fertility rate curve. Similar to a bond curve, but expressing productivity available.

Or it is a reference to everyone apparently needing to go to college etc, and there being a nationwide shortage of people entering into trades, mechanics, fabrication, machining, etc. All the “bad” jobs you should stay in school to avoid.

Turns out we live in a built environment, not everyone can sit in a cube.

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