Quote:
Originally Posted by redpoint5
What are y'alls predictions on when used car prices peak and start heading back down (or will they simply platau)?
I couldn't believe how prices jumped up something like 30% and continue to keep increasing. My assumption at the beginning of the pandemic was that people would be out of work and selling everything to get by, but that doesn't seem to have occurred. One of my tenants bought a new motorcycle with the stimulus check while he was furloughed and I was giving a free month of rent.
Whenever I think I've got something figured out, I should just bet on the opposite since I'm so consistently wrong about my assumptions.
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I'd say 2023 at best as long as the economy keeps going strong.
There is steady or increasing demand chasing a limited supply of vehicles. The 2020 recession was very short lived and lots of people stayed employed but had nothing to spend their money on due to shutdown and travel restrictions.
It isn't just cars either. The price of a 3 year old used Class 8 truck is up 46% year over year. The price of a 8 year old Class 8 is up is up 63%. There is no relief in sight as trucks are made to order and there is a 14 month industry order backlog at the moment. (Yes, a truck ordered today will be delivered in 2023)