this post was submitted on 07 Apr 2025
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[–] essell@lemmy.world 27 points 10 months ago (2 children)

Buying 2nd hand reduces demand for new goods, which reduces prices in the broad sense.

[–] BossDj@lemm.ee 52 points 10 months ago (3 children)

That's not what happened when demand for used cars skyrocketed a few years ago

[–] Voyajer@lemmy.world 37 points 10 months ago (2 children)

Demand for new vehicles didn't drop, supply for new vehicles stopped.

[–] Sauerkraut@discuss.tchncs.de 29 points 10 months ago (1 children)

Also, demand for cars can't drop because Americans don't have basic freedoms like access to quality public transit, walkable cities, or infrastructure to protect bikes from car drivers who watch movies on their phones while they drive

[–] dalekcaan@lemm.ee 13 points 10 months ago (1 children)

Yup, the US has managed to turn cars from a luxury item to what's essentially a necessary good.

[–] reallykindasorta@slrpnk.net 5 points 10 months ago (2 children)

People with cars a couple years old were being asked to trade for a new one just to bolster used inventory. Don’t understand the economics but I know two people who traded their 3ish year old cars for brand new ones (and a little cash on top) at the behest of the dealer during that time.

[–] doingthestuff@lemy.lol 4 points 10 months ago

I bought right after the lockdown. Six months later I was being offered more for my car used than I paid for it new. I'm still driving it, and it's been paid off for quite awhile, three year loan.

[–] WhiteOakBayou@lemmy.world 3 points 10 months ago

I don't know the economics either but I bought a used truck in Dec 20 and after 6months or a year the dealer started calling me every month or so with an offer to buy it back at more than I bought it for. It was really crazy.

My parents bought a their car when their lease was up then sold it back for a profit around the same time. Just to add to the anecdotes.

[–] ArsonButCute@lemmy.dbzer0.com 4 points 10 months ago

You mean when carvana started overpaying for used cars to build inventory to test their product and inadvertently crashed the used car market (from a buyers perspective)?

[–] essell@lemmy.world 1 points 10 months ago

How complicated economics is!

[–] Kecessa@sh.itjust.works 7 points 10 months ago (1 children)

But increases demand for used goods means the price increases for them, which means the deal isn't as good so buying new becomes more interesting...

[–] essell@lemmy.world 3 points 10 months ago (1 children)

I think we just invented economics

[–] Kecessa@sh.itjust.works 0 points 10 months ago (1 children)

And we just realized how silly it is!