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The US used-car bubble has burst
https://qz.com/2046081/us-inflation-data-show-the-used-car-bubble-has-burst/
https://qz.com/2046081/us-inflation-data-show-the-used-car-bubble-has-burst/
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I'm not sure what you're talking about. Prices are already dropping. In fact, there was a guy here who sells RVs for a living who was saying that used Ram diesel trucks at auction were already catching bids that were $5,000+ LESS than just a month ago. The bubble popped.I wouldn't try to buy one at this time from anybody that has one to sell and expect for them to drop there price any. Everything goes up and down over time, but it still not time, maybe in 6 months you might start to see a drop, maybe.
Asking prices don't tell the story, sold prices do. It's early, but the tide has turned.I don’t see it on the ground yet. Judging by prices on cargurus and Cars.con, used prices remain high. My online JL trade-in value was at an all-time high last week.
The statistics are a lagging indicator. From an increase of 7.2% month over month, to effectively flat in a single month, is a massive reversal. Just look at the graph on the article. They're basically in a freefall. The next month will likely reveal massive price declines.If I am reading the article correctly, it states that used car prices only rose .2% this month. The previous several months rose at 7.2%. Meaning prices are stabilizing, not coming down.
Everyone knows the price of used cars are outrageously overpriced. That is all you hear on news... INFLATION! USED CAR PRICES! INFLATION IS "TRANSITORY!" "See... look, used car prices have peaked! Don't look at food prices, look at used car prices!" A lot of people and companies had to settle on used vehicles because of lack of new vehicle inventory. If everything went back to normal *ROLLS EYES*, then I'd agree with you because history usually rhymes. But we're in unpredictable times. Our government is spending like a drunken sailor. We've never spent like this outside of a war. And it feels like they are building up momentum for more spending. What's coming next? January 1st, $7.2 Trillion package? Then $11.7 Trillion Summer 2022? All that debt being created is hurting your purchasing power. Venezuelans are now complaining about the U.S. dollar purchasing power. VENEZUELA! And until it's paid off (which will likely never happen), you shouldn't be thinking about the words, "I told you so". Waiting a bit longer just to maybe save $3,000 more on a new ride is a gamble. I just re-built my vehicle on the jeep website and it went up almost ~$250. I saved $250 in the last 4 weeks. The demand for new vehicles could be high. A lot of people anticipating prices to come down, expecting trains of new vehicles to roll into the lots once the chips are added to tens of thousands of sitting vehicles around the country. There could be enough demand to buy up that supply, especially with record low rates.Once prices start to come down, anyone who bought at the peak with little money down, and financed for 72 months or longer, is going to have negative equity for many years to come.
Anyone who paid a dealer markup is going to be upside down even longer.