Or there could be a limited number of foolish people available to buy.
At some point sales will go completely into the toilet.
All they are doing with this tactic is kicking the door wide open so the Chinese can just walk on in.
Breaking the addiction of insanely high car prices
Why Is Inflation So Stubborn? Cars Are Part of the Answer. (yahoo.com)
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"dealer markups accounted for 35% to 62% of total new-vehicle consumer inflation from 2019 to 2022"
I still cannot believe people were willing to pay more than what cars were actually worth.
"Automakers, loath to relinquish profits enabled by scarcity, started talking about exercising “discipline” in their production targets."
No wonder we're still seeing relatively empty car lots.
"According to TransUnion, the average monthly payment for a new car rose to $736 in the first quarter of 2023, from $585 two years before. Used cars average $523 per month, up $110 over the same period."
And the problem is prices never really come back down. They might normalize for a while, but we'll continue to see an upward trend. Pretty soon, $100K trucks will be the norm.
"dealer markups accounted for 35% to 62% of total new-vehicle consumer inflation from 2019 to 2022"
I still cannot believe people were willing to pay more than what cars were actually worth.
"Automakers, loath to relinquish profits enabled by scarcity, started talking about exercising “discipline” in their production targets."
No wonder we're still seeing relatively empty car lots.
"According to TransUnion, the average monthly payment for a new car rose to $736 in the first quarter of 2023, from $585 two years before. Used cars average $523 per month, up $110 over the same period."
And the problem is prices never really come back down. They might normalize for a while, but we'll continue to see an upward trend. Pretty soon, $100K trucks will be the norm.
