Quote:
Originally Posted by redpoint5
You think all this economic turmoil and layoffs will cause a net increase, decrease, or keep prices about steady for new vehicles (and products in general). What will happen with used car values?
On the one hand, there's little new production (limited supply), but on the other, nobody can afford anything (limited demand).
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The decline in supply is real. The decline in demand is psychological - at least for now. Yes, some people have lost their jobs but the vast majority have not. There are still plenty of people working at full pay and some working more hours and making more money.
Price for high demand models might actually go up. I suspect run of the mill models will get higher and higher incentives. I don't see any real big changes to overall strategy. Companies were already planning for a recession this year. (at least mine was)