Wednesday, March 04, 2009

Too Many Cars

A bunch of pictures of unsold cars sitting in lots around the world at Ritholtz: Unsold Cars Around the World



At some point these cars will be deeply discounted in order to be sold. At that point what happens to a person with a slightly used car? Who is going to buy a used car if there are new cars available at the same price? Eventually there will be a collapse in vehicle values and many people are going to find they owe more for their car than it is worth. Just like their house. And when energy prices start to rise again people will have more credit card debt than assets.

More images at Getty.