Article: When Will Car Prices Come Back to Earth?

[NorthernHawkeye]

Based on those assessments, it looks like new cars will be in short supply well into 2024, and the number of used cars on the market could lag behind demand at least a couple of years beyond that. In other words, it's going to be a long time before both new and used car prices come down to anywhere near pre-COVID levels.

When Will Car Prices Come Back to Earth?

We talked with top industry analysts to find out when today’s soaring car prices might return to pre-pandemic levels—and their predictions aren’t pretty. That doesn't mean you can't still find a car you love, if you're flexible.

www.caranddriver.com

 

[HawkOptimist]

The price gougers will find new excuses to prolong their price gouging well past 2024.

 

[sober_teacher]

Like so much, they’re completely screwed by the collapse of their supply chains.

 

[Huey Grey]

Prices will never come down. Wages will just have to go up.

 

[anon_b29nm7v7dwp6r]

The price gougers will find new excuses to prolong their price gouging well past 2024.

This 100%. COVID was a great excuse for corporate America to extract never before seen profits. Never let a good crisis go to waste, and now they can blame it on “inflation”….

Prices will never be what they once were, why would they? All us losers are still buying are we not?

 

[JMSBFD]

Prices will never come down. Wages will just have to go up.

Struggled with basic econ and have no touch with reality? Don't disagree with part of your premise but you are very short sighted in your gotcha comment as usual

 

[sultanofsuede]

Heard an economist on NPR say that prices will never drop back. Just not how industry works. They may stop climbing this year (he says), but after that, the price bar has been set.

 

[luvmyhawks]

This 100%. COVID was a great excuse for corporate America to extract never before seen profits. Never let a good crisis go to waste, and now they can blame it on “inflation”….

Prices will never be what they once were, why would they? All us losers are still buying are we not?

Correct. Which is precisely why prices keep going up. I swear some of you have never taken an economics course. There is no price gouging going on. It is simple supply and demand. Period.

 

[luvmyhawks]

Prices will never come down. Wages will just have to go up.

Correct. Price’s rarely, if ever, come back down.

 

[luvmyhawks]

The price gougers will find new excuses to prolong their price gouging well past 2024.

Ah yes. I see this must be the talking point you are receiving from your favorite news outlet. Why don’t you go ahead and explain to me how price gouging is occurring right now. I anxiously await your response.

 

[mnole03]

Heard an economist on NPR say that prices will never drop back. Just not how industry works. They may stop climbing this year (he says), but after that, the price bar has been set.

When the chip shortage is over and there’s no supply constraint there will be more competition. All manufacturers are prioritizing high margin vehicles, but eventually there won’t be a need to prioritize.

Additionally the term of the average car loan has increased, which means at some point there will be less demand and people will have to keep their cars longer.

 

[sultanofsuede]

I have a super right leaning family member that is so mad about car prices right now. Sorry to bring up personal, anecdotal experiences. I don’t love price jumps either - but to me, it’s just capitalistic response to the market. I’m ok with that. I lean left and think capitalism is pretty good. What am I supposed to say to her?

 

[Jimmy McGill]

Simple answer my friends, never buy a new car off the lot.

 

[NorthernHawkeye]

Simple answer my friends, never buy a new car off the lot.

Prices for used cars were a dizzying 40.5 percent higher than in January of last year.

 

[Jimmy McGill]

Prices for used cars were a dizzying 40.5 percent higher than in January of last year.

If one is smart, they can do better in that market than spending 60K on a new vehicle

 

[ping72]

Thanks, Trump.

Life was better under Obama.

 

[ihhawk]

Simple answer my friends, never buy a new car off the lot.

When I ordered my Lincoln in September last year, I was able to order under our companies X plan. I got 3k off.

The used 2020 and 2021 Aviators were selling for more than the MSRP of the new one. Let that sink in for a second. My new car was less money than a 2 year old.

The dealership asked if I wanted to sell my car to then when it came in.

I picked up my car on December 22nd. Since that time, they have had 1 new car arrive. 1

 

[Jimmy McGill]

When I ordered my Lincoln in September last year, I was able to order under our companies X plan. I got 3k off.

The used 2020 and 2021 Aviators were selling for more than the MSRP of the new one. Let that sink in for a second. My new car was less money than a 2 year old.

The dealership asked if I wanted to sell my car to then when it came in.

I picked up my car on December 22nd. Since that time, they have had 1 new car arrive. 1

And other dealerships are doing stupid mark ups

 

[Slappy Pappy]

Ah yes. I see this must be the talking point you are receiving from your favorite news outlet. Why don’t you go ahead and explain to me how price gouging is occurring right7 now. I anxiously await your response.

Data from the U.S. Commerce Department shows that corporate profit margins are the largest they've been in 70 years

And

According to The Wall Street Journal, nearly two out of three of the biggest U.S. publicly traded companies had larger profit margins this year than they did in 2019, prior to the pandemic. Not just profits. Larger profits. Nearly 100 of these massive corporations report profits in 2021 that are 50 percent above profit margins from 2019.

 

[ihhawk]

And other dealerships are doing stupid mark ups

My sales rep bought a new Civic. He found 1 dealership in the country who would sell it at msrp. In Indianapolis. We live in Florida

 

[IA_HAWKI]

Its funny listening to conservatives bitch about capitalism

you want prices to come down, stop rewarding corporations making record profits and using inflation as an excuse to jack up prices while you continue to buy their crap.

 

[NorthernHawkeye]

As with the restaurant industry, we are not participating with the auto industry at this time.

Bought a new one in 2017 and another in 2019. Perfect timing for us. We will drive them to 250,000 to 300,000 miles.

 

[HawkOptimist]

Ah yes. I see this must be the talking point you are receiving from your favorite news outlet. Why don’t you go ahead and explain to me how price gouging is occurring right now. I anxiously await your response.

Greed. Anymore questions?

 

[seminole97]

This 100%. COVID was a great excuse for corporate America to extract never before seen profits. Never let a good crisis go to waste, and now they can blame it on “inflation”….

Prices will never be what they once were, why would they? All us losers are still buying are we not?

TRILLIONS were added to the monetary base, why would prices be what they were before that?
What idiot has that expectation?

 

[seminole97]

And other dealerships are doing stupid mark ups

Would you rather the lot be empty with no cars to sell?
I’d always rather pay $5 for a gallon of gas than be told the price of gas is $2 a gallon, but none is left for me to buy.

 

[MuscoHawk]

 

[UNIowaHawk]

I look at it similar to airlines charging for bags— they rolled this out as a way to help cover the increase in fuel costs. Well, there fuel costs came back down and many still charge for baggage.

 

[anon_b29nm7v7dwp6r]

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Bingo, this is what people don’t get. In a competitive market, yes I agree that inflation would be driven by government money.
But we are not competitive.

 

[seminole97]

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[seminole97]

Bingo, this is what people don’t get. In a competitive market, yes I agree that inflation would be driven by government money.
But we are not competitive.

What is stopping you from competing?
Is there a law that prevents it, or you just don’t like your prospects?

 

[dandh]

I think dealers will change their selling methods once the economy goes into recession again. So, likely at some point in the next two years or so, if supply chain issues have subsided by then.

 

[anon_b29nm7v7dwp6r]

What is stopping you from competing?
Is there a law that prevents it, or you just don’t like your prospects?

Get real….you think start up businesses actually have a chance against mega corps like Proctor and Gamble, and others? Best case scenario, they compete for a bit then get bought up. The Governments main role in a capitalist economy is to ensure there is competition….you essentially can buy two brands of soft drink, something owned by coke or Pepsi. Or social media being concentrated to a very few companies.

When there is that little competition, companies can set the price to whatever they want.

 

[SolarHawk]

Correct. Which is precisely why prices keep going up. I swear some of you have never taken an economics course. There is no price gouging going on. It is simple supply and demand. Period.

There's no price gouging? lol, are you joking? Why has Ford and GM come out and told dealers to knock off the crazy mark ups or else? I'll hang up and listen.

https://ktla.com/news/money-smart/ford-gm-tell-their-dealers-to-stop-ripping-off-car-buyers-or-else/

 

[Hawk_4shur]

I have a super right leaning family member that is so mad about car prices right now. Sorry to bring up personal, anecdotal experiences. I don’t love price jumps either - but to me, it’s just capitalistic response to the market. I’m ok with that. I lean left and think capitalism is pretty good. What am I supposed to say to her?

Simple. You say, "Are you in favor of capitalism or not? If not, the alternatives are socialism or communism".

 

[Hawk_4shur]

There's no price gouging? lol, are you joking? Why has Ford and GM come out and told dealers to knock off the crazy mark ups or else? I'll hang up and listen.

https://ktla.com/news/money-smart/ford-gm-tell-their-dealers-to-stop-ripping-off-car-buyers-or-else/

The term "price gouging" generally refers to increasing the price of essentials such as food, clothing, shelter, medicine, and equipment needed to preserve life and property after a natural disaster.

Car dealers are charging more for a non-essential product - namely new cars/trucks and late-model used cars/trucks. If you need a car for transportation, there are older models that are still affordable. You can buy from a private party and usually save some money. Or you can keep the car that you have.

Dealers are charging prices that maximize profit, but still provides needed sales volume. It's capitalism.

Ford and GM are mad because the dealers are keeping the extra profit, not because they are concerned about the consumer.

 

[stout1]

As with the restaurant industry, we are not participating with the auto industry at this time.

Why, pray tell, are you not participating in the restaurant industry?

 

[TonyTheTiger.1865]

Prices will come back down when people stop overpaying for cars. They are gouging because they are getting away with it. Keep driving your old car or buy a low end new one and prices will come down.

 

[IA_HAWKI]

Why, pray tell, are you not participating in the restaurant industry?

Its probably for the best. Northern strikes me as one of these demanding customer/low tip types

 

[luvmyhawks]

Greed. Anymore questions?

‘Economics. Learn about it. Until then, shut up.

 

[bagdropper]

Prices for used cars were a dizzying 40.5 percent higher than in January of last year.

It really is amazing how even older used vehicles have climbed in price, say from 15-20 years ago or even older. Those are now climbing in demand and price too. And this isn't for say restoring classics...I'm talking average ordinary vehicles that can be potential daily drivers if fixed up.

That's how the car market is now. Anything that can be saved is now being saved because there simply aren't enough vehicles to go around.

I own a 2000 2wd pickup. Rust free, very nice shape, low miles for the age...a nice older simple truck. I paid $5k for it in fall 2020. I now see them for sale online for $9-10k. And the funny thing is I bet the sellers are getting that too cause the listings don't last that long.