There was a question yesterday that generally stated cars lose their value so fast because people don’t know what the previous owner did. That’s fair, but why does that not relate to houses?
In: Economics
It’s party a supply and demand thing, population increasing means more and more people need a place to live, so having a house becomes more and more valuable, especially when the population looking for houses outpaces the rate houses are being built. Cars, however, are built rapidly and constantly and, unlike houses, will be worthless after a certain number of miles/years simply because they won’t work (or because it costs more to keep them working than to just get a new one).
Another thing to consider is the land. Owning a house means you own the plot of earth that it comes with. Land cannot be produced, so land also becomes more and more valuable as the demand for it increases, especially when you cannot increase the supply for it. With a car you don’t actually own the ground underneath the car, so you don’t get to sell that ownership like you do with a house.
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