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.
Last July I traded in my 2003 minivan towards a new car. (I get a lot of miles out of my cars.) The dealer gave me $900.00 more than it was worth.
The new car I bought is worth more now than when I bought it, more than the total I paid for it, including tax, license, phoney dealer addons, etc.
I bought a 1995 F350 back in April. Now I have random people offering to buy it from me.
It’s not a diesel, either - has the BBF gas engine (7.5L)
My wife drives a 2002 Ram with 96k miles. A dealer we know wants it......... 🤔
I have a 2008 Tahoe I was going to sell it for $2500 with 250,000 miles on it my youngest son said wait a minute and show me where I could probably get around eight to $10,000 for this old thing.
According to KBB, my car gained $4000 since last month in trade in value
They have a lot of experience - working on the same cars for 60 years. The technology never changes!
Our local Ford Dealer lot is practically EMPTY.
—
Local Toyota lot has 9-10 vehicles
Referencing the movie's futuristic premise itself, there were many societal or political forecasts woven into the storyline, and a number of these have become reality, including: The People's Republic of China embraces capitalism and becomes a global economic superpower.[13][14] Nike becomes a huge multinational conglomerate.[13][14] The collapse of the USSR occurs.[14] America experiences a devalued dollar and becomes heavily in debt to foreign lenders.[13][14][dubious – discuss] The prevalence of reality shows on television occurs. Network television deals with previously taboo subjects accepted as normal (Monty Rushmore stars in the sitcom Both Father and Mother and plays a cross-dressing single father in the title role.[15] The film's narrative also mentions The Schlong Show, a game show where contestants are judged by their reproductive organs). A governor of California becomes president in real life in a little over a year after this movie's release.
My dealer sent me a postcard offering be 10% over book. LOL No wonder they call dealers, stealers.
Smart move. I could make a boatload off of my truck but from my house it’s a lllllooooonnnnggggg walk to civilization.
Both Edmunds and Kelly Blue Book are buying.
When we visited Eastern Europe in the mid 1990s, still very Soviet, the buildings were kept in mid 40s to mid 50s. Very dark, maybe just one lightbulb in a room.
That’s what they want for us. To be cold, hungry and in the dark. In the land of fruited plains and abundant energy. But that’s not for us, no.
Communists are the most vile, wicked group of evil people on this planet.
Well, I take it back, the communist politicians are merely puppets of the corporate authoritarian technocrats ( along with CCP) who are the actual most evil group. Communist pols are their useful idiots, but extremely evil also.
The US and foreign governments are in a “race to the bottom” in turning their currency into toilet paper.
So far the US remains the primary currency of world trade because other currencies are even worse.
As to the future—my crystal ball if very foggy—but if I had to bet it would be on a worldwide depression of epic proportions where all currencies collapse together.
I sold my 2021 Toyota Tacoma that I bought a year ago for $43,256. This was enough to pay off my loan (owed 34,000) and was $3000 more than I paid for it plus got all my downpayment back. Going to get a RAV 4 Hybrid instead..cheaper and more fuel efficient.
I have a few oldies sitting in different states of reassembly.
What inflation. Last week was 3.99 per gallon. Today I awoke to 6.29 per gallon. Let’s go Brandon!
This is intentional.
They want to kill the Internal Combustion Engine, both gasoline and diesel, and Natural Gas as well.
They want us all to buy electric cars that have a limited range and essentially be stuck within a hundred mile bubble all our lives.
Soon there will be NO NEW CARS FOR SALE because of the FAKE CHIP SHORTAGE. All the new car manufacturers are switching over to FULL ELECTRIC car production ONLY and need this time to generate a huge demand, when ‘suddenly’ there is no longer a ‘chip shortage’. BOGUS from the get go.
Used cars will eventually all die off for lack of parts or parts so expensive they won’t be economical to buy if at all.
If you try and keep your gasoline car running, gasoline will be difficult to find because there won’t be any filling stations, only electric charging stations with a 12 hour WAIT TIME just to plug in.
Welcome to the Biden nightmare......................
I bought a new truck (Toyota) this month. It cost about the same or maybe a little less than similar used models of the same truck with 75,000-100,000 miles on them.
Need to sell the Mercury Grand Marquis but it is such a good car I may just mothball it and put it on blocks in reserve. They don’t make a 27 mpg, 75 mph, living room on wheels that will run a hole in the wind anymore. One of the most refined designs ever and I was never a ford guy.
Biden's solution? He's thinking about closing down another pipeline.
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