Ultra-easy credit conditions in 2020-21 conditioned many to think that prices–from vehicles to homes, consumer goods, crypto, stocks, junk debt, et al.–only go up. Painful lessons are the natural aftermath of such misguided thinking.
In the July University of Michigan consumer sentiment survey, 15% of respondents said that interest rates were now impeding their ability to buy a vehicle; this was the same level as October 2008 amid the great financial crisis and up from 4% at the end of 2021. Meanwhile, auto loan defaults are accelerating, and repo activities are helping to balloon the used vehicle supply as dealers (like many homeowners in denial) hold on to inventory, hoping that peak prices will return soon. Classic bust cycle.
Used Car prices Update. Car Bubble is slowly letting out air. Here is a direct video link.
“There has never been a time in history when used cars have appreciated; this has taught so many bad habits.”
