Re:A glut has used-car depreciation accelerating
by dragonwriter on Wednesday August 23, 2017 @12:46AM
(#15078580)
> So when you can't even buy one new, why would someone want a used one?
If people would want to buy them before considering availability of new ones, banning new one increases market clearing price of used ones by eliminating an obvious alternative.
Now, as the number on the road dwindles, you'll start to see reduced support infrastructure (gas stations, parts availability, etc.) which will make ownership less attractive, but that's likely to be a slow and lagging process. So, if there are still utility advantages to gas cars, I'd expect used ones to become more expensive initially with a ban on new ones, but drop sometime later.
If people would want to buy them before considering availability of new ones, banning new one increases market clearing price of used ones by eliminating an obvious alternative.
Now, as the number on the road dwindles, you'll start to see reduced support infrastructure (gas stations, parts availability, etc.) which will make ownership less attractive, but that's likely to be a slow and lagging process. So, if there are still utility advantages to gas cars, I'd expect used ones to become more expensive initially with a ban on new ones, but drop sometime later.