Auto Bubble Views
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The third point, that autos may appreciate slightly, comes from the same supply and demand concept that caused the prices to rise. This doesn ’t mean that the new car you bought will be worth more than you paid for it. It simply means that the car you have had for a while that has severely depreciated may come back up a bit. For example, if you bought a car at $30,000 and it was valued at $17,000 after two years you may find that this bubble causes the depreciation to lessen slightly, making the value of the car $18,000.
Sorry to inform you, but the auto bubble has already popped. It was fueled by the ability of people to use their houses as atme’s to buy cars they didns’t need. thatt’s why car sales have dropped by 40%. The big three can cease production and demand/supply will barely be affected. Or they can stay on lifesupport and inventories will skyrocket. Itp’s dire time for autos.
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