So I'm taking an economics class and we were going over

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Nobody buys new cars anymore.
What the fuck kind of economics class do you attend?

>>17820189

OP is still in highschool.

Most people buy new cars because they are the easiest to secure financing on. Many people buy $30k new cars that could not afford to buy a $5k used car outright because they are already stuck in a debt cycle or they are just retarded.

>>17820174
>What if everyone collectively decided to not buy cars for a few months?
>By law the price of new cars will go down
>eventually it'll get to the point where a new car could be at the price of a used car
You'll never get to that last step.

>>17820174
>it's the reason why it's a better idea to always buy used.

This is not a fact. Some cars make more sense to buy new.

>>17820438
>Some cars make more sense to buy new.
American car, for example, which only last 5 years anyway.

>>17820174
This doesn't work even in the simplest possible model of economics. The second people decide to buy cars again, the demand goes up. Depending on how you model the inventory, the new price will be either the same as it would have been or even higher due to the lagging demand of people that wanted to buy the car in that period.

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>>17820174

Hi OP,

I literally drive the supply-and-demand posterchild.

The minute they stopped making these things the prices started to stop declining.

Now they've plateau'd, 3-4 year old FJ's are selling for nearly their original MSRP, it's fucking bananas.

http://www.autonews.com/article/20151115/RETAIL04/311169971/toyota-fj-cruiser-is-scarce-hot-and-high-priced

>What if everyone collectively decided to not buy cars for a few months?

That would require some kind of social solidarity, and we don't have that in the Western world. Thank the EU and Trudeau for importing boatloads of niggers.

>>17820174
That's not how thing work mr high school freshman.

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>mfw people here cant distinguish pasta

>>17820568
Economics is usually taken senior year, gramps.

>>17820189
As someone who works in an automotive manufacturing plant; you are so wrong

that would never happen, because cars will always be in demand. but even if it did, it could only reduce prices down by a little. car companies aren't going to just give away cars that are less than what they paid to make, plus profit. the only time they would if it's more of a liability than an asset to have on the lot.

S&D is an overtime study of consumer / business relations. if something legitimately forced less demand like, like rich and middle class people suddenly taking up biking and refusing to new buy cars, then prices would go down overtime, but so would the quality of parts

>>17820599
To clarify, 80% of new cars are leased or financed.
Cars are a monthly payment to most Americans.

>>17820174
>So I'm taking an economics class and we were going over a 'supply and demand' concept.
That simplistic model doesn't exist in real life due to price fixing as well as corporations talking to one another. It also doesn't exist because the government regulates some prices to be lower in order to protect consumers from predatory pricing. If you wanted pure deregulation, then it would be closer to the simplistic things you "studied" in your very introductory class so far in the school season.

Each state has regulations protecting against predatory pricing for cars. Thus the prices are far lower than they could be for used cars. The Moss Magnuson Act keeps the prices artificially low for many consumer goods that are used in products that have replaceable or repairable components. The Moss Magnuson Act is definitely anti free market economics just as your state and country utility commissions regulate utility prices to be lower than they otherwise would be based upon demand. Your state has an insurance commision and commissioner that is usually elected (it is in my state) to regulate insurance prices. Free market pricing would definitely harm consumers.

Wouldn't it be great if medical care prices weren't regulated? All emergency life saving care should have contracts where the person saved pledges not only one billion dollars minimum per operation, but also 50% of all future earnings to the doctor's corporation team's medical practice. Deregulation is great when it eliminates consumer protection laws that prevent free market economic practices of charging what the market would bear. Life Saving care has no compettion. You either get it, or you die. Thus, it should cost one billion minimum each and every time. Free market is good.

>>17820174
holy fuck stop taking that economics class NOW and do something with your life