Quote:
Originally Posted by jamesqf
1) Because cost of production means you can't build a $5K car and sell it at a profit.
2) Because depreciation means that your new $20K car can be bought for $5K in a few years. Why would any cost-conscious person ever buy a new car?
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Never seen a $20K vehicle sell for $5K within a few years. Usually seems to take a decade unless something is SERIOUSLY wrong with it. I've seen some people asking $5K for a ten year old vehicle with serious transmission or engine troubles. The shocking part, some people are willing to pay such. The same vehicle usually ends up for sale again at a slightly higher price with same issues a few months down the road. The cycle seems to repeat till nobody is willing to pay for it then someone loses a lot of money.
As for selling a new car for $5K and making a profit, I bet it can be done, but only by a major auto maker.