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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (13628)	9/12/2003 8:57:32 AM
From: Tommaso	Read Replies (2) \| Respond to of 306849

I keep waiting for the dirt cheap bargains in really good used cars to appear, but I do not see them yet, at least in the cars I monitor. There are 2002 Camrys with maybe 10,000 miles on them selling for about $15,000. But then with rebates, ther have the brand new 2003 Camrys going for around $17,000--and they are bigger and nicer cars, really they took the Avalon body and called it a Camry for 2003. So why settle for a smaller, year-old, used car with some miles on it when the brand new better one is only $2,000 more? It used to be that the first year of use cut a car's price by about 35% (I think). I am looking inflation in a lot of areas, but looks to me as if there is a lot of room for deflation of car prices, especially with all these leased vehicles and 72-month loan terms with negative equity. Maybe a lot of dealers will have to declare bankruptcy and then the inventories will sell off at truly distressed prices, when interest rates rise and the cost of carrying the inventory becomes ruinous. But circumstances made it necessary for me to replace a car, so buying new instead of used seemed the better option right now. I can't imagine what may happen with housing prices. Manufactured housing seems already headed the way of the automobile market. It would be nice (for me) if vacation homes eventually went on the block.