HELP! My car value has crashed 28%!
So what does the decline in my car's value of 28% since 2006 have to do with the housing "crash?"
I'd like to know what is it about human psychology that allows many consumers to be excited about buying a new car on payments knowing the fact that 30 minutes after they drive off the lot that car is continuing to plunge in value, their payment remain the same and buy new cars throughout their lives. Yet, many of these same consumers feel frustrated and upset the values of their homes have gone down by about the same rate. (Actually in my local market the decline has been about 18% since the peak in 2006
I wonder this because I recently some friends told me they want to buy a new car. Two months ago these same friends told me they were thinking of letting their house go because they are upside down and they feel stupid paying for something that's not worth what they paid for it.
What is so different about a car and a house? I mean, at least the house can be lived in for many decades while very few cars are fully functioning after 20 years.