Used Car Prices, still elevated, dropping kinda fast

According to Manheim Used Vehicle Value Index, used-vehicle prices

  • decreased a whopping 3.2% in the first 15 days of June.
  • a total 9.4% Y-o-Y
  • but the drop, significant though it is, comes at a relative high level.

Chart below is for used cars, but it is looking more an more familiar. It looks a lot like the chart for home prices, retail sales etc. etc…

Last year I got my wife a used Jeep. I thought the prices had already gone back to what they used to be, but apparently I’m just a jedi when it comes to getting good deals. My grandparents are also Jewish, so that definitely helps.

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For comparison

Retail sales (including food and beverage, and e-tail)

Home prices

Sounds like you got a good deal. Congrats.

For us normies and muggles, it’s probably not a good idea to wait expecting prices to crash back to normal. Because “way up then sideways” is happening in many parts of the economy, (cars, home prices, retail sales etc) it is likely that if used vehicle prices start crashing back to normal it will be part of an economy-wide crash and the Fed would likely intervene to stop that.

Never wait for an opportunity to take an advantage. :wink:

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Still, not EVERYTHING is following that pattern.

While most things moved up then sideways

  • lumber prices are down, most stock prices are down
  • the magnificent 7 tech stocks are up so high the market average is up.

But those are rare exceptions.

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