A Metric of the Disaster, by Eric Peters

Cars 15 and 20 years old are trading at hefty prices precisely because they are not today’s cars. From Eric Peters at ericpetersautos.com:

How bad are things? Let’s count one of the ways.

My sister owns an early-mid 2000s Honda Element with nearly 200,000 miles. It cost about $20,000 when it was new, all those years ago. I scanned used car listings to see what one of these might cost today, used.

How about $15,995 for an ’08 with just under 75,000 miles?

In case you’re counting, 2008 was 14 (almost 15) years ago. So, this aged Element is worth – is being sold for – only about $5k less than what it listed for when it had zero miles, 14 (almost 15) years ago. But this didn’t surprise me too much given it only has about 75,000 miles on it and so probably has at least another 150,000 miles of life left in it.

This latter being one of the chief reasons why the cars of that era – as opposed to the cars of the current era – are so valuable, notwithstanding how long ago that era was.

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