The latest Labor Department report on consumer prices shocked economists when they saw how prices for used vehicles soared 10.5% in Jue, following already-robust increases of 7.3% in May and 10% in April. As the economy overheats and global shortages of computer chips crimps new-car production, an extremely rare phenomenon has turned the auto world upside down.
For the first time in recent memory, prices on used cars are “defying gravity,” according to WSJ.
Once seen as the ultmate depreciating asset, some car owners are being offered even more money than they originally paid for their vehicles, especially for certain popular models like the Kia Telluride and the Toyota Tundra. The problem is that consumer demand for cars and trucks has surged (thanks in part to all the federal stimulus dollars sloshing around in Americans’ bank accounts).
To be sure, for most models, used vehicles can still be had at a lower price than the newer cars. But if things don’t change soon, most in-demand used models will see their prices remain elevated for a long time.
“We have a long way to go before prices come down,” said Tyson Jominy, an auto analyst with research firm JD Power.
GM shutting production down for one month due to lack of electronic chips…Ford and chevy slowed down months ago. Heck, theres already a shortage of school supplies, clothes and shoes. This doesnt go away in weeks….a correction takes many months. It will NOT be a good holiday season so shop now or be on the outside looking in.
The bottom will drop out eventually. Especially on things like boats and campers. People snatched them up bc there was nothing else to do in 2020. When maintenance starts popping up along with the price tag associated with it, you’re going to have more used items hitting the market than ever before.
The crooked car dealers don’t deserve ANY of our cars or trucks !!! Let them go Out of business !!!! Crooks !!!!