Comment on Ask HN: When will car prices normalize?parentComments−nojito4yThe car industry is far worse. The vast majority of Americans are driving cars they can't afford.I know Blackrock and other parasites are scooping up housing too, but that's not the majority of buying.This is generally a good thing because it drives prices down−mpmpmpmp4yHow does it drive prices down when speculators are buying up residential houses and outbidding regular people?−nojito4yBecause many more people can afford rent as opposed to taking on a mortage.−884yThe vast majority of Americans are driving cars they can't afford.How do you define whether someone can “afford” a car? Surely by definition the people can afford the cars, otherwise they would be repossessed?If you mean they cannot afford to buy the cars outright, why is that an issue?−nojito4yJust because you don't lose your house doesn't necessarily mean you can afford to keep it.At a certain % of income, owning an asset doesn't make much sense due to how it affects your financial security.−bonestamp24yHow does reducing the already limited supply even further, drive prices down? I always thought that when demand is high and supply is low, prices go up?−nojito4yThere are way more renters than there are home buyers.
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The car industry is far worse. The vast majority of Americans are driving cars they can't afford.
This is generally a good thing because it drives prices down
How does it drive prices down when speculators are buying up residential houses and outbidding regular people?
Because many more people can afford rent as opposed to taking on a mortage.
How do you define whether someone can “afford” a car? Surely by definition the people can afford the cars, otherwise they would be repossessed?
If you mean they cannot afford to buy the cars outright, why is that an issue?
Just because you don't lose your house doesn't necessarily mean you can afford to keep it.
At a certain % of income, owning an asset doesn't make much sense due to how it affects your financial security.
How does reducing the already limited supply even further, drive prices down? I always thought that when demand is high and supply is low, prices go up?
There are way more renters than there are home buyers.