Long Sticker, Short Prius

by Mr Juggles

According to USA Today:

Californians appear willing to pay $4,000 more for used gasoline-electric hybrid vehicles that have state-issued carpool stickers than for hybrids that don’t.

We expect the markets for carpool-lane stickers to evolve, similar to the way the CDO market evolved for mortgages and other types of consumer debt. We see an opportunity for buying sticker-bearing hybrid cars, stripping off the stickers, and reselling both the sticker and the car separately. By selling the stickers to those who most want to avoid traffic — and the hybrid to those with the highest tree-hugging tendencies — one should be able to realize higher pricing versus the bundled buy that exists now.

The mortgage markets provide a clear path for success: hopefully, the collateralized sticker market will grow until it becomes completely out of control, encourages over-leveraged purchases of carpool lane stickers, and leading to a regulatory crackdown that starts an economic recession.

Recommendation: Short Prius cars, Long carpool lane stickers.

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