Current Events > With gas prices going up, will car prices finally come down?

(+) Yeah! (+)

I want to buy a car damn it.

Oh my no

Not likely. I wish prices would start to come down on everything.

In theory, yes it would since they are complementary products
If the price rises, then demand will fall. Meaning that price will eventually have to fall in order to meet a new equilibrium between supply and demand. Since cars are complementary, this means that since the demand for gas falls, then the demand for cars fall as well; meaning that they will have to lower prices in order to meet the new demand equilibrium.

In reality, none of this will happen.

Yeah, by they should but the lack of supply will probably keep it up.

Usually what happens is gas hogs go down a little bit and cars go up but you really only see it on the extremes, like 40+mpg and sub 15mpg vehicles

Don't buy, lease instead. That's what we do. 3 year lease, oil and maintainance issues are the dealership's problem the first two years, and at the end of the third year, you get another new car.

Last time prices were this high, hummers disappeared...so there might be some effects.