At the end of 2020 it seemed like the inventory problems for new cars might be coming to a close in early 2021, but if this shortage of semiconductors is real then maybe early 2021 still won't see new and used car prices come back down for a bit longer.
From time to time there will be a showroom car on sale that matches, especially if you’re near the end of that generation
But why do you think the system is setup this way? Car dealerships in the US having more money (or financing access) to keep stocks than other parts of the world? US customers wanting instant gratification for their purchase? (although, likely, anyone likes that over delayed car delivery, it's just that once you get used to instant car delivery is hard walk away from it)
I did get rejected by Audi when I wanted to order a car in a special paint color. They advertised "any color you want, just $2500 extra". When I tried to take them up on it, the reply was, "We don't know you, your dealer isn't a top performer, and our custom paint shop is booked up over a year anyway. So kindly bugger off."
Presumably, no one pays anywhere near MSRP for that model unless they custom order from the factory.
I’m sure it varies from manufacturer to manufacturer, but still.
The price of land seems to be a good starting point to explain the difference
"From an automotive standpoint, dealership inventory remains lean – currently sitting at a nine-year low and down 22% for year-ago levels – which has already led to some reversal in the very generous summer incentives", which indicates higher prices. I couldn't find pricing data.
This new shortage + current shortages + low interest rates = high prices on used/new. I was thinking of buying something last year, but now I think I'll wait until '22 or '23. (or if I can WFH, never!)
https://www.cargurus.com/Cars/price-trends/ is a good reference for following used car pricing trends. All signs point to them going up and barely flattening now.
I guess I'll be holding onto my 2011 Honda Odyssey until it catches fire on the road.
Meanwhile those who did lose their jobs are screwed. These people were probably also poorer before COVID hit, so fewer of them would have bought a new car absent COVID anyways.
This is also why the stock market can't seem to crash; bond yields are super low, and there is more money being saved (and thus looking for investments) than ever.
That's been the problem in the US for the past 45 years or so. We have a lot of wealth, it's just not particularly evenly distributed. Every single financial shock in my lifetime has made the problem worse.
Good luck, I bought a 2005 toyota corolla with the idea of driving it until it died. I am now concerned the car will bury me instead.
No that's the toyota krushchev
1. average US houshold income is very high
2. cars are a must (both for cultural and practical reasons), not a luxury
Yes, in times of job loss and other economic strain consumers will stop buying certain things, but likely not cars (at first).
C4C effected 700k cars from the 90s, all of which were worth less than $3,000. There were, at the time, roughly 250 million registered vehicles on the road. There's absolutely no chance that this had any effect what-so-ever on the market for used cars. 700k is literally a rounding error when compared to 250 million.
What hurt the used car market was the fact that new car sales fell from roughly 15 million a year in 2008, to 9 million a year a year in 2009. It took until 2015 before cars sales reached that of 2008.
All told 40 million fewer cars were produced between 2009 and 2015 compared with how many would have been produced if not for the GFC.
Those 40 million cars that were never produced are what caused used car prices to spike. Not the 700k Ford Windstars and Explorers lost to C4C. Anyone who tells you different is a fool.