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
All the answers here are good, so instead of duplicating them I’ll mention the one thing I haven’t seen yet:
Cars are fungible while real estate is not. Every car has thousands of completely identical twins that you could buy. Whereas the combination of a house, and the exact location of that house and the land it’s on, is unique. So a surplus of 0.5 acre parcels in Nowhere, Nebraska cannot create downward price pressure on a 0.5 acre parcel in Charlotte, NC in the same way that identical cars create downward pressure on each other.
> cars lose their value so fast because people don’t know what the previous owner did.
This is also true of houses, and it has very little (close to nothing) to do with why cars depreciate.
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