Prices will come down but it may take some time. The problem, from what I have been able to see is when used cars were skyrocketing in price, a lot of car wholesalers took out loans (which they do normally anyways, they don't use their own cash) and purchased a bunch of cars/trucks to cash in on it. Now that the market is cooled off, they are faced with 2 bad choices:
Hold the car and keep paying all the costs associated with it including maintenance, storage, loan payments, and keep getting hit by depreciation.
Sell the car for less than you bought for and find the cash to pay the difference between the car's selling price and the loan. They may not even have that kind of money if they have a significant fleet of cars purchased for more than they are now worth.
Until they are ready to accept that 2 is the only options, prices will stay above market value even if no one is willing to pay those prices. If some of these wholesalers start defaulting, this could mean a serious crash in prices coming in the future as the market is flooded with foreclosed cars. However, that may not be for a while.
Prices will come down but it may take some time. The problem, from what I have been able to see is when used cars were skyrocketing in price, a lot of car wholesalers took out loans (which they do normally anyways, they don't use their own cash) and purchased a bunch of cars/trucks to cash in on it. Now that the market is cooled off, they are faced with 2 bad choices:
Hold the car and keep paying all the costs associated with it including maintenance, storage, loan payments, and keep getting hit by depreciation.
Sell the car for less than you bought for and find the cash to pay the difference between the car's selling price and the loan. They may not even have that kind of money if they have a significant fleet of cars purchased for more than they are now worth.
Until they are ready to accept that 2 is the only options, prices will stay above market value even if no one is willing to pay those prices. If some of these wholesalers start defaulting, this could mean a serious crash in prices coming in the future as the market is flooded with foreclosed cars. However, that may not be for a while.