With the news just coming out that inflation hit a new 40yr high, landing at 9.1%, we’ve been experiencing this in multiple different categories over the last year. One of the biggest has been with cars. Not only has the price for new cars gone up, but prices for used cars have been out of control.

For new cars, 82% of people were paying above sticker price.

We know that a new car loses around 10% of its value right when you drive it off the lot, and after 5yrs, a car is typically worth 63% less of its value. It’s why we’ve been hearing for so long, buy a car that’s a few years old. The majority of its depreciation has hit, and it’s typically in good shape from a wear and tear standpoint.

But when car manufacturers close the shop, production hits a halt, you add the semiconductor chip shortage, and then all the money that was printed… we have a crazy moment. Increased demand because supply has been hit, and everyone has money to spend—the perfect storm.

Subscribe to Commune 👉
Follow Commune on Instagram 👉
Follow Commune on Facebook 👉
Follow Commune on TikTok 👉
Follow 👉 @MikeyTaylor

Learn About Commune 👉
Commune Investments 👉
Commune Team 👉
Invest With Commune 👉

Follow Mikey Taylor on TikTok 👉
Follow Mikey Taylor on Instagram 👉
Follow Mikey Taylor on Twitter 👉

#Cars #CarBubble #Inflation…(read more)

LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

Inflation is a term used to describe the increase in the prices of goods and services over time. It is a common economic phenomenon that affects various industries, including the car market. Inflation can have significant impacts on both consumers and businesses in the automotive sector.

One of the most direct ways that inflation affects the car market is through the increase in the prices of new and used vehicles. As the overall cost of living rises, so do the prices of automobiles. This can make it more difficult for consumers to afford a new car, leading to a decrease in demand for vehicles. Additionally, the inflationary pressures may also lead to higher interest rates, making it more expensive to finance a car purchase.

Furthermore, inflation can also impact the cost of manufacturing and running a car dealership. As the prices of raw materials, labor, and operating expenses increase, car manufacturers and dealers may be forced to raise their prices in order to maintain profitability. This can have a cascading effect on the entire automotive supply chain, from parts suppliers to dealerships, ultimately leading to higher prices for consumers.

In addition to the price impacts, inflation can also affect the overall consumer confidence and purchasing behavior in the car market. When inflation is high, consumers may be more cautious with their spending, opting to hold onto their current vehicles for longer periods of time rather than purchasing new ones. This can lead to a decrease in sales for both new and used cars, impacting the profitability of car manufacturers and dealerships.

On the other hand, inflation can also create opportunities for certain segments of the car market. For example, as the prices of new vehicles rise, consumers may turn to the used car market as a more affordable option. This can lead to an increase in demand for used cars, potentially benefiting used car dealers and individuals looking to sell or trade in their vehicles.

Ultimately, inflation has a multifaceted impact on the car market, influencing everything from pricing and consumer behavior to the overall health of the automotive industry. It is important for both businesses and consumers to be mindful of the potential effects of inflation on the car market and adjust their strategies and decisions accordingly.