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Originally Posted by DrFerry
The phenomena of CarMAx experiencing demand destruction reared its head as early as April 2022 right after the FED began raising interest rates in March 2022. CarMax has been "the canary in the coal mine" and this came right on the heals of a previously hot used car market, as the free money 'stimulus check' handouts were being put to use buying used cars. Then, in September 2022, CarMax revealed horrendous results to shareholders. Fast forward to today, after a period of the FED raising interest rates at the most rapid pace in history (ever).
The used car dealer guy in the video is right. By summer of 2023 Car Dealers (both used and new) will be begging people to buy cars as demand destruction escalates and deflation bites them (they'll have to lower their prices and/or take losses on existing inventory). Sure Car Dealers will lay off some people to reduce costs, but right now CarMax and others are stuck with large inventory investments in the face of diminishing demand.
Ergo by July 2023, those consumers who are able to buy a new or used car will benefit from much lower prices well, well, below MSRP IMO. If you're interested, or just about to be "n the market" check out these articles from earlier last year.
"Horrendous" CarMax Results Confirm Fed Has Successfully Pushed US Economy Off A Cliff
https://www.zerohedge.com/economics/...-economy-cliff
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CarMax Confirms Demand Destruction As Used-Car Prices Tumble
https://www.zerohedge.com/markets/ca...-prices-tumble
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Very true. I fit this category, as I'm looking to purchase not one but two vehicles this year. Both most likely pre-owned. My initial plan was to buy the first in Spring and the other in Summer.
Now I plan to be patient and revalue in late July or August.