Overhaulin'

What happens to second hand car prices in a recession?

Do they get cheaper as people are selling unwanted cars, or more expensive as people are not buying new cars?

Public Comments

1. they get cheaper , much cheaper in fact, car dealers will be losing out big time
2. If they are from a dealer then they would probably get cheaper as the dealer needs to sell them to survive. However a private seller may not be in such a rush to sell and hold out for the full price or wait till things pick up a bit.
3. In general they are right, but to expand on their points, many cheaper or economy cars will hold steady and could even go up, while bigger, most expensive car prices will go down. People still need cars, but they are less willing or able to plunk down big bucks for the Mercedes or Escalade.
4. Depends how long it lasts. Initially big car prices will nose dive and small car ones hold or maybe even strengthen.