Will car prices go back down soon?

[Anonymous]

We are looking at buying a car for our 16 year old, but are hesitant because used car prices are so ridiculously high now.
Do you think that prices are likely to drop in the next few months?

[Anonymous]

No. Buy private party from someone who hasn’t yet figured out how much they can get.

[Anonymous]

Absolutely not

[Anonymous]

Anonymous wrote:Absolutely not

Why absolutely not? From what I understand prices are high due to a shortage of microchips caused by the shutdowns.
I would think that in a few months, the shortage would have passed and prices would normalize.

[Anonymous]

Not to mention 8 to 10 percent inflation. Prices are not going back down.

[Anonymous]

I definitely think car (and housing) prices are going to cool a little. But not next month, it may take a year.

[Anonymous]

Even after the microchip supply gets back to normal, there is so much pent up demand from all the people current waiting on the sidelines because of the shortage and high prices. And from those who need a car to go back to work and want to avoid public transportation. And rental companies resupplying their fleets as travel gets back to normal. Finally, people are flush with cash and want to buy cars.

This high price/low supply issue will be here for a while.

[Anonymous]

We’re in an inflationary cycle now. Nothing - absolutely nothing - will be getting cheaper.

[Anonymous]

Do prices ever go down?

[Anonymous]

Anonymous wrote:Not to mention 8 to 10 percent inflation. Prices are not going back down.

Are you still getting economic forecasts from Alex Jones and Roger Stone?

[Anonymous]

Definitely not in 2021, and I'd guess not until mid 2022 at the earliest.

There was a big fire last week at a plant that makes materials for chips. The longer the shortage of new goes on, the longer used will stay high (and that literally will have probably a decade of ripple effects, when less cars are produced you can track it in used car prices up to 12 years later).

[Anonymous]

It’s not just the chip shortage; but auto makers have slowed production because of the shutdown and outbreaks, and labor needs. They are trying to ramp back up now, but even when shortage is over the demand for chips has driven the price if the chips up. The labor costs, increases production costs, and inflated price of chips will be evident in the final price. This is for new cars, but used are a function of new prices. I won’t say they will never go down, but prices increase all the time; this may be the time for cars.,if you need a car now your best bet is to buy and hope that they don’t so you can reap your return when you sell.

[Anonymous]

Anonymous wrote:It’s not just the chip shortage; but auto makers have slowed production because of the shutdown and outbreaks, and labor needs. They are trying to ramp back up now, but even when shortage is over the demand for chips has driven the price if the chips up. The labor costs, increases production costs, and inflated price of chips will be evident in the final price. This is for new cars, but used are a function of new prices. I won’t say they will never go down, but prices increase all the time; this may be the time for cars.,if you need a car now your best bet is to buy and hope that they don’t so you can reap your return when you sell.

long term, if there is inflation, eventually interest rates will go up. With new car loans averaging 6 years, that will absolutely effect what people can afford which will put downward pressure on prices

[Anonymous]

Anonymous wrote:Do prices ever go down?

Yes. Remember 2007?

[Anonymous]

Was getting ready to buy a base model Subaru Outback. In checking prices the past couple months they were around 28k. Now all of a sudden they are 30k. 28k was already a stretch for us. We don’t like to spend a lot on cars and prior to this possible purchase, have never spent more than 23k on a car. Not liking these new prices.