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A Flood of Repossessed Vehicles Poised to Hit the Used-Car Market

Now is one of the worst times ever to buy a car. Wait six months or a year and things will be different.

By Mike Shedlock | 24 July 2022

MISH TALK — A pair of excellent Tweet threads explain what is happing with car prices and pending repossessions.

Image from Wolf Street via Tweet thread below

Worst Time to Buy in 30 Years 

  • There has never been a worst time in the last 30 years to buy a vehicle. Within the span of 2 years, cars went from being the largest depreciating asset one owned, to doing better than most of our stock portfolios, and I’ll explain exactly why.
  • To get a better understanding of the insanity which is the car market, lets start with a number that we’re all familiar with: 9.1% (CPI for June). New & used cars are a large portion of that. New vehicles rose 11% yoy and used cars 7.3%.
  • But percentages don’t do a good job at painting the whole picture so here are the raw numbers: 2 years ago: Average new car: 38k, Average used car: 20k. So what about 2022? Average new car: 50k (+24%)Average used car: 31k (+35%)[Used Car Image from Sully Below] […]

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