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Comment by eulers_secret | Hacker News Reader

Drove up new car prices, too: https://economics.td.com/us-vehicle-sales

"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!)

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> I couldn't find pricing data.

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.

Yeah, I was also hoping to buy a vehicle in 2020 but ended up holding off due to not driving nearly as much now and due to the prices going up. I was hoping prices would come back down in 2021 but we shall see...

I'm complete confused about the economy in the United States. You look at the news and all you hear about is the enormous amount of financial pain families are going through at this time. But then you hear about cars and trucks flying off of dealership lots.

I guess I'll be holding onto my 2011 Honda Odyssey until it catches fire on the road.

I've heard its a K-shaped recovery. Some parts recovered quickly but others didn't. For example service and tourism didn't. But tech and construction is less impacted.

The average income (including stimulus checks) in the US went up, while at the same time lots of people losing their jobs. People who didn't lose their jobs (or have their hours curtailed), are doing significantly better because they aren't spending as much money and got stimulus checks.

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.

I bought my new car exactly a week before being laid off.

> my 2011 Honda Odyssey until it catches fire on the road.

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.

>I am now concerned the car will bury me instead.

No that's the toyota krushchev

It's a bit easier to understand when you factor the fact that:

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).

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