The concept is great. But the volatility in the used car market has been historically unprecedented, and there's no easy way for them to hedge this.
As an FYI, I sold a car this spring for 8% over what I paid for it 6 years prior, i.e. it was worth about 85% of orig price adjusted for inflation.
Today, edmunds appraises it for 45% of orig price adjusted for inflation.
As an FYI, I sold a car this spring for 8% over what I paid for it 6 years prior, i.e. it was worth about 85% of orig price adjusted for inflation. Today, edmunds appraises it for 45% of orig price adjusted for inflation.
That is an insane move on a durable asset.