🚗The auto market bubble has burst, leading to a decline in used car values.
💸Limited production, low interest rates, longer ownership, and greed are the main factors contributing to the bubble burst.
📉Car prices have fallen, especially for electric vehicles, with Tesla leading the price drop.
📉Car owners are falling behind on payments at the highest rate ever recorded, leading to repossession.
📉Dealerships and banks are preparing for defaults and writing off some auto loans as complete losses.
Why have car prices fallen?
—Limited production, low interest rates, longer ownership, and greed have contributed to the decline in car prices.
Which types of cars have seen the biggest price drops?
—Electric vehicles, particularly Tesla, have seen the biggest price drops.
Are car owners falling behind on payments?
—Yes, car owners are falling behind on payments at the highest rate ever recorded.
How are dealerships and banks preparing for defaults?
—Dealerships are motivated to sell off existing inventory, and banks are writing off some auto loans as complete losses.
Is now a good time to buy a car?
—Yes, car values are declining, except for pickup trucks. Used car prices are still higher than pre-pandemic levels.
00:00The auto market bubble has burst, leading to a decline in used car values.
03:10Car prices have fallen, especially for electric vehicles, with Tesla leading the price drop.
03:56Car owners are falling behind on payments at the highest rate ever recorded, leading to repossession.
06:08Dealerships and banks are preparing for defaults and writing off some auto loans as complete losses.
09:00Car values are expected to continue declining into 2024. It's a good time to buy a car, except for pickup trucks which increased in value. Used car prices are still higher than pre-pandemic levels.
