You're likely not gonna get a serious drop in car prices unless things get very, very bad:
Most of the cars in OP's potential moral hazard aren't going to be on the market anyway - people will be living in them when they recognize the Chevy Cruze they've been deferring maintenance on them won't pay their rent for another month.
There could be another supply constrictng program in the vein of Cash For Clunkers.
There's a lot of cars out there financed on almost predatory terms. The banks will repossess them and try to auction them to dealers - which is easy to do unlike a house. This dampens downward pressure on price because used car dealers still need to make money.
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You're likely not gonna get a serious drop in car prices unless things get very, very bad:
Most of the cars in OP's potential moral hazard aren't going to be on the market anyway - people will be living in them when they recognize the Chevy Cruze they've been deferring maintenance on them won't pay their rent for another month.
There could be another supply constrictng program in the vein of Cash For Clunkers.
There's a lot of cars out there financed on almost predatory terms. The banks will repossess them and try to auction them to dealers - which is easy to do unlike a house. This dampens downward pressure on price because used car dealers still need to make money.