Augh – Car shopping is so frustrating!

[redpoint5]

Not that I pay close attention, but I don't recall any other time where used car prices spiked this much.

How much did used car prices increase when the regressive "cash for clunkers" was implemented?

The Car Allowance Rebate System (CARS), colloquially known as "cash for clunkers", was a $3 billion U.S. federal scrappage program intended to provide economic incentives to U.S. residents to purchase a new, more fuel-efficient vehicle when trading in a less fuel-efficient vehicle.

A 2009 study by researchers at the University of Michigan Transportation Research Institute evaluated the effects of the program on the average fuel economy considering a baseline without the existence of the program, since there was already a trend for buying vehicles with higher fuel economy due to the high gasoline prices of 2007 and 2008, and the economic crisis of 2008. The study found that the program improved the average fuel economy of all vehicles purchased by 0.6 mpg in July 2009 and by 0.7 mpg in August 2009.[64]

A 2010 study published in the journal Environmental Research Letters reported on the findings of a life-cycle assessment study of the CARS program. The researchers found that CARS prevented 4.4 million metric tons of carbon dioxide equivalent emissions, representing an estimated 0.4% of the annual U.S. emissions from light-duty vehicles.[65]

A 2013 study published in the Journal of Environmental Economics and Management concluded that the program reduced carbon emissions by between 9 million tons and 28.2 million tons, "implying a cost per ton ranging from $92 to $288 even after accounting for reduced criteria pollutants."[60]

A 2013 Brookings Institution study found that "the CARS program led to a slight improvement in fuel economy and some reduction in carbon emissions. The cost per ton of carbon dioxide reduced from the program suggests that the program was not a cost-effective way to reduce emissions, although was more cost-effective than some other environmental policies, such as the tax subsidy for electric vehicles or the tax credit for ethanol."

https://en.wikipedia.org/wiki/Car_Al..._Rebate_System

[freebeard]

Ctrl-F gets two hits on '50%', both in your posts. I wonder who is getting allegatored.

[oil pan 4]

Originally Posted by freebeard

Ctrl-F gets two hits on '50%', both in your posts. I wonder who is getting allegatored.

It's not in this post. It's over in the coal furnace post.

[freebeard]

Permalink? I hope it wasn't the snark about Unicorn fa[r]ts.

I apologized.

[rmay635703]

The people who buy toward the higher end of the car market are not affected by the pandemic

Normal people aren’t buying but are virtually ignored by the car makers anyway

Also we have been exporting record numbers of used and junk cars that pulls the bottom out of the market leaving only $$$$ examples.

It’s worth noting that a the pandemic has allowed many industries to pull record profits if their cost goes up 6% they can raise their price 12-18%
Most places haven’t had the opportunity to inflate prices like this in decades

Right now it’s similar to 1979, 18% loans were common back then

[oil pan 4]

Originally Posted by freebeard

Permalink? I hope it wasn't the snark about Unicorn fa[r]ts.

I apologized.

It's all good.

Originally Posted by JSH

The Consumer Price Index says used cars are up 49% since June 2020 and 30% in the last year.

https://fred.stlouisfed.org/series/CUSR0000SETA02

[JSH]

Originally Posted by freebeard

Ctrl-F gets two hits on '50%', both in your posts. I wonder who is getting allegatored.

LOL - I'm guessing it is me. Apparently not being freaked out about China makes me a "sympathizer".

[JSH]

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.

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)

[freebeard]

LOL - I'm guessing it is me. Apparently not being freaked out about China makes me a "sympathizer".

I'm not a sympathizer I'm an empathizer.

The reason I couldn't tell is that I may be a little outside the Overton Window for some. I discriminate between good commies and bad commies. The old Soviet Rus and Vietnamese versus the Han Chineses and their CCP.

Myself in April 2017:

These Communist Mid-Engined Prototypes Are Absolute Genius

A couple of commie chicks in their commie sports car.

In case it slipped your notice, with the weak leadership in the West V. Putin is making his move in Ukraine. Not a blitzkrieg, he's proposing a non-aggression pact, and troop movements limited to brigade size. In exchange for NATO not gobbling up Ukraine.
________________


Should I raise the asking price on my Dasher from $1250?

[redpoint5]

Only functional Commie is the family or small community. Everything else is varying degrees of disfunction.

Looks like I've got a couple years of waiting to purchase a vehicle. A 6+ seater would be good though.