With soaring borrowing costs, the Federal Reserve has slammed the brakes on the once-booming used car market. The latest data on wholesale used-vehicle prices show October’s decline on a year-over-year basis was the worst since the financial crisis over a decade ago.
The Manheim Used Vehicle Value Index for October declined to 200, or about 10.6%, the worst decline since December 2008 when the global economy was melting down (and the 5th largest decline ever)…
The Fed’s rapid pace of rate hikes this year is slowing demand, as Edmunds data showed the average annual percentage rate on used-car loans was a staggering 10% for some borrowers.
The index that tracks the price of what car dealerships pay at auto auctions has slid for 8 of the nine months and declined for the 5th straight month.
Since the Fed hasn’t blinked (yet) and borrowing costs continue to skyrocket, wholesale used-vehicle prices could cool significantly more.
And guess who was in office in 2008. Obama. These people send the economy into a tail spin every time they’re elected. But at least we don’t have to deal with the Trump prosperity .
Barry didnt work so that should never happen again. Key words should never.
Also, used prices have to come down more too. Still a gluten of newbies out there that still havent made it to dealerships (remember we still dont have enough chips for cars trucks etc) what happened to the new 2021 and 2022 models? They shut down during covid but not that long. They are NO making more EVs either. Cmon man.
People with leased vehicles….they arent gonna keep them. A crash is coming in the calendar year. Wait and patience. The dealers are panicked and thats why service at dealerships take appointments or they will have ur car for days. There are no parts!
Wait!
About 40% more and I might be able to afford one.
DEALERS just waiting to RIP YOU OFF !!! As usual