Used car market predictions

[RenRed2]

https://www.roadandtrack.com/car-culture/a38595024/used-car-market-will-crash/
The Used Car Market Will Crash

If you have a spare car sitting in your driveway, consider selling it as soon as possible.

 

[ToyoBMW]

Damn it, I have 6 to get rid of ASAP

 

[RenRed2]

Damn it, I have 6 to get rid of ASAP

Oh hey Carvana!!!

lol

 

[supraboi]

 

[RenRed2]

Reality - the pain continues

https://jalopnik.com/the-chip-shortage-is-still-the-problem-1848424918


The Chip Shortage Is Still The Problem
"We aren't even close to being out of the woods" says Commerce Secretary Gina Raimondo

 

[SupraNews]

Oh hey Carvana!!!

lol

Try shift too. Certain cars wholesalers like as well

 

[Suggs.OR]

What a vague prediction and click bate title… if I read it right estimating that the market might return to normal near end of 2023… the sky is falling! Eventually….

 

[RenRed2]

What a vague prediction and click bate title… if I read it right estimating that the market might return to normal near end of 2023… the sky is falling! Eventually….

Last year it was end of 22 for this market to 'normalize' LOL.

 

[hotsaucewizard]

The market is still far from normal. 99% of our incoming new units are pre-sold with deposits. We have people getting in line with deposits hoping what they want becomes allocated on the next release. Things aren't changing any time soon.

 

[hotsaucewizard]

The inference here of course is that incredibly limited supply on the new side will keep the prices on the used side up for quite some time.. that being said dealers that are stocking inventory have had to pay heavy into the units to get them.. you might see a breaking point but a dealer can only lose so much money per unit.

 

[RenRed2]

The market is still far from normal. 99% of our incoming new units are pre-sold with deposits. We have people getting in line with deposits hoping what they want becomes allocated on the next release. Things aren't changing any time soon.

Given the variance of the VIRUS around the world predicting anything is useless. Supply chain fragility continues unabated. Period lol.

 

[Thill444]

Low interest rates and loose lending have allowed consumers to afford the more expensive car pricing as of late, but as interest rates rise and the Fed's pullback how much cash they float out there, banks will be forced to raise rates and to tighten credit requirements. That means more people will need downpayments and or will delay purchasing until pricing comes down.

I think both used and new markets will remain strong but we may see things level off and some of these crazy ADM's (like $20K ADM on a new $28K Honda Civic SI) go away.

 

[Suggs.OR]

I was just watching Effspots video on YouTube where he goes around to different dealerships and yea… there is no way I would ever pay $10k to $15k over msrp for most of those cars he showed. Does someone really want a nissan commuter car that bad?

 

[ToyoBMW]

$5000 markup on a 72 month loan is not that much. Some people get stupid when they get their hands on some money

 

[SupraNews]

Nothing will be done until sometime in 2023 most likely.