Car Market Crash?
Just as I suspected. Most of the nuts paying over sticker price for everything can’t actually afford it. But they keep agreeing to these ridiculous prices, so dealers keep charging.
My favorite part, usually there’s a 80% 20% loan to value ratio. Now they’re seeing people owe as high as 140% of the value of the car. Keep paying those mark ups. https://www.motorious.com/articles/n...4x8g&fs=e&s=cl |
Quote:
|
Quote:
|
B of A is predicting 175k layoffs per month fairly soon and if true that will flood the used car market. Anyone holding cash could get a bargain on a second fifth gen.
|
In every 8 years, this does happens to automotive and real-estate markets. This should be back to normal in late 2023 or till the mid of 2024.
|
Used car prices are have been slightly going down each month the second half of the year. By late 2023 used prices will probably be back to normal but adjusted for inflation of course. If you don’t believe, enter your vin on caravan, vroom, carmax or your local dealer. The ridiculous inflated prices they were paying for used cars are no more now. Because of this private sellers will have to drop their prices as well. There will always be a delay before the “savings” make their way to the customer but they eventually will. The only thing I will add is for specific vehicles, it has not begun to normalize yet. For example zl1’s are still bringing in a premium and so are corvettes (especially z06’s). These specialty vehicles might not ever normalize but we will have to wait and see.
I agree with a poster above about new vehicles. That might not be fixed until 2024/2025 because of supply chain issues. I hope I’m wrong about this but we’ll see. |
Several months ago I read a great article on how the subprime car loans were basically a duplicate of the subprime home loans from around 2008. Ticking time bomb for the people who overextended themselves on a used car.
I bought my F-150 and C6 Corvette prior to COVID. I've watched Gen5 prices and I did slightly overpay for a 2011 2SS Convertible (L99 w/ 5k miles) last month - but it was still $5k cheaper than what I'm seeing them go for on Carvana with more miles. Speaking of Carvana, I was tempted to short their stock when it was at $35 a few months ago & wish I had. I think their stock will be worthless at some point when they burn their cash, can't get anyone to help, and end up having to file chapter 11. If they're forced to liquidate (which is doubtful IMO) that's 64k cars that could hit the market based on their inventory today. |
All times are GMT -5. The time now is 03:38 AM. |
Powered by vBulletin® Version 3.8.9 Beta 4
Copyright ©2000 - 2024, vBulletin Solutions, Inc.