|
I think the most important thing is said was earlier in the video. In the USA subcompact cars are seen as the car you buy out of necessity not desire. Many if not most car buyers would rather spend their dollar to buy a larger and fancier used car instead of a new subcompact. Manufacturers and dealers would also rather sell a customer a CPO used car than a new subcompact so the subcompacts have ceased to exist.
As to the lack of subcompact cars driving up the cost of used cars not so much. Of course the more a new car cost the more a used car will cost but the recent skyrocketing cost of used cars was due to new car supply disruptions in 2020 2022. The number of vehicles being leased also cratered which has limited the normal steady pipeline of used cars coming into the market.
That said wholesale prices for used cars are plummeting. They are down 50% from their peak in January 2022.
That drop in wholesale value also means that many people that took out new car sized loans for 3 year old cars are now WAY upside down on loan value vs vehicle value. It will be interesting to see if the number of upside down loans leads to reduced used car inventory and drives wholesale values back up.
|