The New Reality: Why Used Cars Are America's Most Expensive 'Bargain' - And What It Means For Your Wallet

Episode Description 

While inflation surges and economists debate recession risks, one market remains stubbornly defiant: used cars. Despite widespread expectations for price crashes, dealers are pricing used vehicles at shocking levels. We dive deep into a real-world example that will change how you think about the automotive market forever. 

Key Points Covered: 

• Market Contradiction Explained - Why used car prices remain high despite economic uncertainty and inflation concerns
• Real-World Price Analysis - Detailed breakdown of a 2020 Chrysler Hybrid Minivan with 18,000 miles priced at $49,000
• Original MSRP Comparison - The shocking revelation that this used vehicle is priced higher than its original $49,330 new car window sticker price
• Dealer Strategy Insights - Why dealerships are confident enough to price 2.5-year-old cars above original retail value
• Supply Chain Reality Check - How the absence of new car inventory is driving unprecedented used car pricing
• Market Positioning Analysis - Understanding dealer pricing psychology and what it reveals about market expectations
• New Car Shortage Impact - Exploring the connection between limited new vehicle production and sustained used car values
• Consumer Implications - What this pricing trend means for everyday car buyers and their financial planning
• Market Prediction Indicators - Signs that dealers may know something consumers don't about future inventory availability
• Transportation Cost Crisis - How these pricing trends affect household budgets and transportation decisions

Bottom Line:
This episode reveals why the used car market defies traditional economic expectations and what it signals about the broader automotive industry's future.

What is The Expert Podcast?

The Expert Podcast brings you firsthand narratives from experts across diverse industries, including private investigators, general contractors and builders, insurance agencies, vehicle specialists, lawyers, and many others.

Inflation is up, economy maybe in a recession, everybody's expecting prices to crash. At the same time real estate investors are buying up properties, but what about cars? People are saying that car prices that spiked up are going to go down. Well at least at this point dealers don't think so.

Here's a vehicle in the used car inventory of a local dealer. It's a 2020 pre-owned Chrysler hybrid van, this is a minivan from Chrysler. This particular car has 18,000 miles on it and it's currently priced at $49,000.
Is that a lot of money? Is it not a lot of money? Well let's take a look. Here's the window sticker when that car was brand new. We researched the VIN number which is right here in the ad, it ends in 4879. Here's the original new car window sticker of that vehicle 4879. When it was brand new it sold for forty-nine thousand three hundred and thirty dollars. It's the same vehicle that's currently selling for forty-nine thousand plus shipping fees. I'm guessing the shipping fees are more than 330 dollars.

So more than likely this car will sell two and a half years later with 18,000 miles for more than it was new. What does that say about the used car market? Well at least for this dealer they're not too scared about not selling cars that they're not taking a shot with this price. Will they get it? I don't know, we'll take a look in a week or two to see if it's still for sale. Dealers don't price cars in a way that don't sell because if they did they would never sell any cars. They price them at a number that has a reasonable opportunity for getting the car sold.

What does this say for the used car market? Well as of the middle to end of July 2022 the dealers aren't running scared yet because they're still pricing cars as a used car what is sold for new being two or three years old. What are you seeing in your market? Are you able to find used cars? It could be that the dealers know that new cars aren't coming, there's no more new cars on the way because if they were they wouldn't be taking shots with these used cars. There's no new cars in inventory and maybe they know something we don't. Look at our other video for a clue on that. There may not be any more new cars coming anytime soon. That's why used cars are still high.RetryClaude can make mistakes. Please double-check responses.