For Sale What will a Hertz bankruptcy do to the used 200 series market??

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onemanarmy said:
New and used car sales are all over the place ...as usual. If it's not this, it'll be something else.

Credit is still cheap and so are gas prices.....and yes, there are rumors of shortages....so there's that.
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Shortages of gas? Where are you seeing that? Refineries are still loaded to the gills with oil
 
Here's an article that pretty accurately describes the huge bubble of used cars that are about to hit the market. I just don't see the demand for these cars being there. The american consumer has already been kicked in the nuts from this scamdemic.


The local auction houses (like Manheim) here in SoCal are still closed. You can still buy an auction car on-line though...:). These cars are already a hit or miss. No idea who would buy one without seeing it in person. New and used car sales have fallen off a cliff, April 2019 1,355,548 vs April 2020 168,850 units sold. May's number will be better but by how much? Not sure how the auto makers are going to hold their prices high. Right now their business model is, "We are going to make any more cars!" Hum...you know you are a car maker right? Look for s*** to hit the fan in the next two months.
 
I also checked prices in the last month or so on a 2019 Nissan NV passenger. Either they sold some vehicles (cargurus) or the advertisements expired on some low priced ones. It would make sense that big vehicles are more in demand since people will drive rather than fly now. We'll know soon enough when manufacturers start handing out incentives.
 
My apologies for continuing this thread, which seems to have been beaten to death. It's important to remember that it isn't April '20 any longer. So it is entirely possible that bad things were happening in the used car market in March and April and better things (from a sellers perspective) can be happening in late May / June. This article does a decent job at pointing out that all of Hertz's vehicles were going to end up in the market over the next 12-18 months anyway - such is the nature of their business. It was the residual value guarantees attached to the asset-backed bonds that destroyed Hertz. They were killed by the decline in the used vehicle market. But the Hertz restructuring will not necessarily have much of an effect on the used vehicle market. Certainly not the Land Cruiser 200 market. Also it is very doubtful that NewHertz would be liquidating the entire fleet and shuttering the business entirely.

seekingalpha.com

The Hertz Bankruptcy And Used Vehicle Values

Hertz has gone bust and that's that - but the interesting thing is why? For the answer to that tells us a lot about what happens next. For example, there are wo
seekingalpha.com seekingalpha.com

In other news, Uncle Carl has exited his entire equity position but is still very rich and will be just fine. Perhaps he has purchased bonds to participate in the restructuring but maybe he will just take his one billion dollar tax loss and carry on with refineries and Occidental Petroleum...
 
"..... They were killed by the decline in the used vehicle market. ....."

Having vehicles end up in the market over 12-18 months is vastly different than having to sell them in 60 days. What you're saying is that the decline in the used vehicles market did Hertz in - therefore used car market is already declined. The $5000 lexus incentives did some thing to the used lx market. Now if Hertz have a bunch of big SUVs to dump then there has to be an effect. Many of us who are looking to spend low $20K are still having a hard time but the $30K+ market has been much cheaper for buyers.
 
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