Too many cars were destroyed that still would have been on the road. With fewer used cars, there is less for others to buy.
Not everybody buys new. Especially in todays economy.
For some people, a good 8,9-10 year old car is all they can afford.
I moved from Seattle to central (rural) KY three years ago. I knew that botht the cost of living and average income here were lower, the latter significantly so, than in Seattle, but I wondered how it would impact products that cost the same no matter where you live.
A few interesting things:
1. In Seattle, everyone warns of buying a “salvage title” car that has been rebuilt. I learned that to buy one here I could not even use the Boeing Credit Union. They won’t loan money on them. But EVERYONE drives them here, regardless of income level. And they turn out to be a great way to get a late model car that is, truth be told, as solid and reliable as non-salvage. And if you ever get into an accident you may find that the air bag actually works - but probably doesn’t. I have a 4WD Z71 Silverado that way. Turns out my banker also had one, and my neighbor with a large ranch also. And there are LOTS of places doing it around here.
2. Before we left Seattle we had discovered estate sales. It got to where pretty much every non-food item was purchased that way. And in affluent areas, nobody wants used stuff so it’s not worth all that much, relatively speaking. But here in rural KY we don’t bother. There is a HUGE market for used stuff to the point that it is as expensive or even MORE expensive than new.
3. Coming from Redmond, WA to here you notice the quality of cars goes down DRAMATICALLY. I drive a Scion FR-S and people react to it the way they would react to a Lamborghini in Redmond. Literally. It’s oddly satisfying, but I wish I was not that shallow. Seriously. To level the playing field, I have a quarter mile long gravel driveway and I have washed the car twice in the year I’ve owned it. ;-)