from Dollar Collapse
Cars used to be the quintessential depreciating asset. Drive a new one off the lot and you were immediately down 40%. Subsequent declines were slower, but they never really stopped.
But that was before Fed stimulus escaped from its financial asset silo and inundated normal life. Now, cars – even used ones — are more like houses: You buy one and expect it to appreciate. Since 2020, the price of a typical 2-year-old vehicle has soared by 50%, to nearly as much as a comparable new model – giving would-be buyers a clear sense of what it’s like to live with an evaporating currency.
[…] Meanwhile, new car prices – which put an effective ceiling on used car prices — are starting their own parabolic rise as panic buying sets in. From ABC News: