Posted on 11/09/2021 8:53:51 AM PST by Red Badger
It turns out that all of the “doom and gloomers” that were warning that we would eventually experience nightmarish inflation were right after all. In particular, vehicle prices have become exceedingly painful in recent months. Due to a crippling global shortage of computer chips, production of new vehicles is way down, and a lot of that demand has shifted into the used vehicle market.
Over the past year, used vehicle prices have escalated at a pace that we have never seen before in our entire history, and things reached a crescendo during the month of October. If you can believe it, used vehicle prices increased by 9.2 percent last month…
The industry’s key index of used vehicle prices jumped another 9.2% over the span of just a month. That puts the index 38% higher than a year ago — compared to “just” 27% for the same stat in September.
If used vehicle prices rose by 9.2 percent for an entire year, that would be really bad. For that to happen in just one month is simply breathtaking. Overall, used vehicle prices are up a total of 38 percent over the past year, and they are now up a total of 59 percent since October 2019. So if you purchased a new vehicle within the past couple of years, it may now be worth more than when it was brand new.
To fully appreciate the insanity that we are seeing in used vehicle prices, I would encourage you to check out this chart.
Used vehicle car prices going parabolic ( chart courtesy @wolfstreeet ) pic.twitter.com/XZZf56mBeq
— ritesh jain (@riteshmjn) November 9, 2021
If that isn’t “hyperinflation”, what would you call it? I can’t imagine that used vehicle prices will continue to rise at an exponential pace like this, but “experts” have been saying the same thing for months and prices just continue to accelerate.
The funny thing is that used vehicle prices usually go down in October…
October typically sees above average vehicle depreciation and therefore used price declines. This October was the first October in the history of the Manheim Index data, which dates to 1997, to see a non-seasonally adjusted price increase in October.
Our Gold Guy America First Of course we are seeing very painful inflation in other sectors of the economy as well. For example, some meat prices are up “about 40% from a year ago”…
Supermarkets say shoppers are buying more store-brand meat products and trading down from beef to less-expensive alternatives such as chicken or pork, after prices for products such as rib-eye climbed about 40% from a year ago, according to research firm IRI. Some consumers are replacing boneless chicken breast with cheaper bone-in chicken, retailers said.
As food prices continue to soar, eventually it will get to a point where big corporations are putting armed guards on food trucks in order to protect deliveries from being hijacked. The worst supply chain crisis in American history is one of the primary reasons why prices are beginning to spiral out of control. A couple days ago, Joe Biden attempted to explain why this is happening…
“It’s backed up because peoples supplies or materials that end up being on our kitchen table or in our in in our our fam, our our our life, guess what? There close those plants because they have COVID.”
What does that even mean? As things get worse and worse, our leaders in Washington seem to have no answers and no solutions. It is being projected that this will be a very cold winter in many areas of the country, and heating bills are expected to be way higher than ever before…
With consumers already dealing with the fastest price increases in decades, another unwelcome uptick is on the horizon: a widely expected increase in winter heating bills.
After plunging during the pandemic as the global economy slowed, energy prices have roared upward. Natural gas, used to heat almost half of U.S. households, has almost doubled in price since this time last year. The price of crude oil — which deeply affects the 10 percent of households that rely on heating oil and propane during the winter — has soared by similarly eye-popping levels.
When she was asked about this, this is how Energy Secretary Jennifer Granholm responded…
Americans should expect to pay higher prices to heat their homes this winter, Energy Secretary Jennifer Granholm said Sunday.
“Yeah, this is going to happen,” she told CNN’s Dana Bash. “It will be more expensive this year than last year.”
Things are so bad that they aren’t even trying to put spin on the ridiculously high energy prices any longer. And heating costs are expected to go even higher in the months ahead as we get into the middle of the winter…
Last month, the Energy Information Administration (EIA) released a report warning that the cost of heating oil is expected to rise approximately 43% compared to last year to due to “higher expected fuel costs as well as more consumption of energy due to a colder winter.”
Meanwhile, the agency expects propane costs to rise by 54%, natural gas costs to rise by 30% and electricity costs to rise by 6%.
Needless to say, government projections almost always turn out to be way too optimistic. Let’s just hope that the Biden administration’s reckless energy policies don’t result in widespread shortages this winter. One analyst that was interviewed by Fox News is actually warning that if things get bad enough we could actually see Americans “freezing in their homes”…
“I hope it doesn’t end like this, but where I see it going is unfortunately the same thing that happened in February in Texas: People freezing in their homes,” he said, adding, “Most of the time when it’s extremely cold or there’s a real bad polar vortex situation, typically it’s pretty cloudy and there’s not a lot of wind.”
Let us pray that things do not get that crazy in the months to come. But without a doubt, this is going to be a difficult winter for millions upon millions of Americans. During the early stages of 2022, we should expect more inflation, more supply chain problems and more economic chaos.
Decades of very foolish decisions are now starting to catch up with us in a major way, and nobody in Washington seems to have a plan that will pull us out of this mess.
$20,000 firm starting bidding price.
A few months ago, I was laughing at the double digit inflation costs of new cars and used cars, and said “Pretty soon you won’t be able to tell any difference between the US and Cuba by the cars we drive”.
I’m not laughing now.
The cars in Cuba are amazing. They must have some talented mechanics to keep those ancient clunkers on the road.
She no longer needs the vehicle for long drives for her job, as she now works from home, so she will buy an old beater, as she calls it, just to go to the store and such. Save about $350 a month just on the car payment not counting the gas. Hubby has a brand new P/U so they aren’t in dire need...............
Thanks, you’re right. 400% in 3 days. So 800% in 4 days.
No. I had one.............................
From what I’ve been seeing, used pickups are leading the way.
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I keep saying this, and it’s getting more and more true every day:
I should buy a Jeep Wrangler. New or used - makes no difference.
Drive it for a year. I usually drive over 20,000 miles per year.
Then sell it for MORE than I paid for it.
Lather. Rinse. Repeat.
Ordered a new vehicle last month..
Price is locked in, and it’s due to be built on the 22nd...
Let’s keep those used vehicle prices rising, so I get a real good price on my trade in
We went to all the dealerships in our town looking for a new SUV.
They were mostly empty and the ones they had in stock cost more than our house.
NOW they have a ‘Market UPCHARGE’ ADDED to the sticker price of $2K-3K....................
Ditto the comments on the hyperventilating FEARMONGERING garbage. Snyder is one of the worst. 10 years of epic gloom and doom and disaster, just so he can fleece suckers. I hate sleasebags that prey on people like that.
On a related point regarding vehicles, I was shocked to see that car rental rates have absolutely gone through the roof. I won’t name the company, but a one-week rental of a intermediate class car is about $500. It was $40/day just last year.
Maybe instead of buying silver I should have just bought old cars...
I could have parked quite a few here on the farm :-)
I’m hanging onto my old 2010 RAV4, it looks rough but runs sweet... only 65k miles...
Next up, buy old campers, the unvaxxed and unemployed outcasts will need a place to live...
Probably MORE than you paid for it...................
I’ve never seen “Americathon “...................
I just check the prices on used 2017 Camry. I can sell it for what I bought it for. Granted I get great deals on them since the entire family drives camrys. I used to be able to tell the dealership if they needed one more sale for the month let me know. They never made money off me but they get big $ if they hit certain sales quotas.
We bought 5 camrys that way 2 in 16 2 in 17 and 1 in 18. Down side it will be another 5 years before I have to teach a new salesman how to do business my way. My wife got the best deal of all. I thought she was completely unreasonable in her cost. She bought a nice Camry. They met her price. I may let her buy them all next time. My guess is she could make money on Camry XSE V6 with everything.
I guess when we get fired due to the Vax we can unload one of them.
Anybody care to buy a used truck? It’s well-broken-in with over 200,000 miles on it so you know it’s reliable. It still has most of it’s paint on it. The noises it makes cannot be diagnosed by mechanics so you know it’s in great-to-somewhat-decent condition.
$20,000 firm starting bidding price.
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I’ll buy it. Yes sir. Today.
As long as it’s a pre-1960 Chevvy Apache or Cameo. Or a Pre-60’s F100. Or a Dodge Sweptline.
Strangely, horse prices are way up too, at least well broke ones. We are all scratching our heads. Usually in hard times you can’t give lower end animals away.
Good point regarding the selection.
Lokey had very little inventory, but Tampa had a decent inventory, comparatively speaking.
If you want “stuff,” it’s 8 weeks minimum, and will cost you an arm.
Not buying an automobile any time soon.
5.56mm
It’s true. I bought a 2007 Volvo XC90 in June for $7,000.
It’s actually in decent condition for having 130k on it.
I took it to my Volvo dealer expecting them to find a grocery list of things to fix and all they found was it needed a $22 gasket for the master cylinder. Their sales manager offered me $10,000 for the car.
This last week a dealer from Wisconsin emailed me and offered me $13,000 for the car. Which is crazy.
Oddly, this car has been my best investment this past year.
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