Morgan Stanley claims used car prices will soon drop by half
They cite a huge number of economic factors, such as cheap credit coming to an end, and cheaper new cars. BUT THEY MISSED THE GORILLA ON THE TABLE: THE CASH FOR CLUNKERS PROGRAM, WHICH REMOVED SO MANY EXCELLENT CARS FROM THE ROAD THAT IMMEDIATELY AFTER, THE PRICE OF USED CARS DOUBLED.
Yep. If you want to know the real reason why used cars suddenly became so expensive, it is because the cash for clunkers program was destroying cars all the way through model year 2001 for almost all "qualifying" models, and in some cases through the year 2003. The cash for clunkers program denied real "clunkers" and instead mandated that every car destroyed had to have perfect emissions, safety, and insurance records for two entire years prior to being accepted for destruction. No true "clunker" could ever have such a pristine health record, no doubt about it, the "clunkers" program was ONLY about destroying the best used cars possible and now that almost a decade has passed, the effects of the program are finally starting to wear off.
Why would they destroy so many perfect cars?
1. These were great cars which predominantly did not have the CIA/NSA behind the dashboard, they were not bugged.
2. The cars accepted were the cars that would offer the best possible utility usage. A dominant percentage was vans and trucks, which is exactly what a start up business would seek to buy, or what anyone who became homeless would want to have. The specific intention as far as I see it was not "to save the environment", no, I believe it was to damage America by removing the most robust and useful vehicles that could possibly be removed.
3. The third reason they wanted to destroy so many used cars was to force the poorest people onto public transit, because they would no longer be able to afford a car. By removing even one segment of the market - large cars - the ripple effect went across to ALL CARS because small cars had to be purchased in greater numbers if you wanted to buy used, and their prices therefore went up also.
My conclusion: Morgan Stanley is "stupid", so "stupid" they can't figure out the BIGGEST REASON OF ALL for used car prices to drop, and that is that now, approaching 10 years after the "clunkers" program, a normal number of used cars is finally being restored, and prices are going to go back down to what they used to be. Oh, Morgan Stanley is probably not stupid, THAT WAS A JOKE, and in reality Morgan Stanley simply does not want people to know the truth about how economics really work, and how HORRIBLE a president Obama was. I don't believe they missed what cash for clunkers did, I think they are simply not honest enough to say it.
Their statements look very convincing, but despite that totally miss the mark, not mentioning cash for clunkers is an abysmal fail! SEE THIS
https://www.intellihub.com/morgan-stanley-used-car-prices-may-crash-50/
Anonymous
They cite a huge number of economic factors, such as cheap credit coming to an end, and cheaper new cars. BUT THEY MISSED THE GORILLA ON THE TABLE: THE CASH FOR CLUNKERS PROGRAM, WHICH REMOVED SO MANY EXCELLENT CARS FROM THE ROAD THAT IMMEDIATELY AFTER, THE PRICE OF USED CARS DOUBLED.
Yep. If you want to know the real reason why used cars suddenly became so expensive, it is because the cash for clunkers program was destroying cars all the way through model year 2001 for almost all "qualifying" models, and in some cases through the year 2003. The cash for clunkers program denied real "clunkers" and instead mandated that every car destroyed had to have perfect emissions, safety, and insurance records for two entire years prior to being accepted for destruction. No true "clunker" could ever have such a pristine health record, no doubt about it, the "clunkers" program was ONLY about destroying the best used cars possible and now that almost a decade has passed, the effects of the program are finally starting to wear off.
Why would they destroy so many perfect cars?
1. These were great cars which predominantly did not have the CIA/NSA behind the dashboard, they were not bugged.
2. The cars accepted were the cars that would offer the best possible utility usage. A dominant percentage was vans and trucks, which is exactly what a start up business would seek to buy, or what anyone who became homeless would want to have. The specific intention as far as I see it was not "to save the environment", no, I believe it was to damage America by removing the most robust and useful vehicles that could possibly be removed.
3. The third reason they wanted to destroy so many used cars was to force the poorest people onto public transit, because they would no longer be able to afford a car. By removing even one segment of the market - large cars - the ripple effect went across to ALL CARS because small cars had to be purchased in greater numbers if you wanted to buy used, and their prices therefore went up also.
My conclusion: Morgan Stanley is "stupid", so "stupid" they can't figure out the BIGGEST REASON OF ALL for used car prices to drop, and that is that now, approaching 10 years after the "clunkers" program, a normal number of used cars is finally being restored, and prices are going to go back down to what they used to be. Oh, Morgan Stanley is probably not stupid, THAT WAS A JOKE, and in reality Morgan Stanley simply does not want people to know the truth about how economics really work, and how HORRIBLE a president Obama was. I don't believe they missed what cash for clunkers did, I think they are simply not honest enough to say it.
Their statements look very convincing, but despite that totally miss the mark, not mentioning cash for clunkers is an abysmal fail! SEE THIS
https://www.intellihub.com/morgan-stanley-used-car-prices-may-crash-50/
Anonymous