The median price of a new car is now $47,400. Since nobody can afford groceries, let alone a shiny new car, dealer lots are swelling. Way back in 2022, my humble little Mazda dealer had zero cars on the lot when I bought my current vehicle (two years ago this month). They were selling cars off the trailers as they arrived from Long Beach each week.
Fast forward after two years of inflationary hell: They currently have 474 new vehicles on the lot. In fact they must have an overflow lot somewhere, because there are not 474 spaces at this place. They are now pushing 96 month car loans, so people can have a shot at making payments. When the populace can’t even afford a Mazda, I guess Kia and the used market will do better.
I got a helpful email from Carvana the other day. Below is a car (I guess they think I still have it) that I sold three years ago, which is now 15 years old. Apparently the price of a 15 year old used car has APPRECIATED by 20% over the last three years. Now I realize that overall inflation is up that much, but that only means a NEW car should cost 20% more than a NEW version of the same model in 2021. A used car that is now three years more used should not cost 20% more, unless demand has spiked because there are suddenly way more people who can only afford a $3500 vehicle. Fun times.
Yeah used car prices will go up because people need cars and can’t afford new ones. So the used car market is so hot that they’re approaching new car prices.
My dad is an 82 year old pensioner with a 20 year old truck. I have a partial disability at 48 but can’t get benefits. He has cancer. We are in hell. I just spent 2000 dollars getting the truck engine repaired because even if it lasts a couple of more months it would be cheaper than buying a new/used car.
Adding to the misery is 17 million illegals entering the country every year, and they want to buy cars, too. I’m sure they’re all getting the required by law insurance.
Perhaps some day, my 2000 Subaru with 400K miles will be worth more than I paid 😛
With all the expensive, fragile, dystopia enabling gadgetry, old vehicles will start fetching greater premiums until .gov steps on the scales, again.
I’ve got a suspicion that the persistently high prices for essentials in the West is a plan to drain people’s savings. The next step might be issuing a traceable global digital currency.
You can see a similar thing happening in the new vs. used bicycle market. I imagine this is happening in just about all durable goods (if that’s the right term) markets.