Anybody wants to speculate how long this will last?
“Are ‘Are prices through the roof?’ threads through the roof?”
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One prediction of the peak being reached: https://www.bloomberg.com/news/articles/2021-06-24/used-car-prices-are-poised-to-peak-in-u-s-after-pandemic-surge?sref=vuYGislZ
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Lets hope so…
Thanks for the article.
Hopefully it’s the same for housing pricing. People are acting like there’s no tomorrrow
We may be at peak used car (finally?!), but new car will be with us for a while. Hertz just raised a couple billion to buy new cars (no more used), so that competition should shift.
People are mainly focused on the nominal increase in house prices.
There’s a lot more to affordability than that.
This is a good read on the topic:
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Rental car companies to corner the market on Altimas and Versas.
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I’ve been looking to lease but deals have been pretty high due to the storage, is it better to wait on it until cars start rolling back up? I’m just not sure to pull a trigger on a BMW lease or wait a couple of months to get a better deal?
3 months from now, the bubble will burst
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Let’s look at this sector. Yes Lumber. And entirely different sector than cars of course but just an example of what happened in JUNE 2021
- Lumber futures tanked more than 40% in June alone, suffering their worst month on record dating back to 1978.
- The building commodity is down more than 18% in 2021, headed for the first negative first half since 2015.
- The quick reversal of lumber’s monthslong rally came as Americans started to go on vacations again instead of taking on renovation and building projects.
- Many who are fearful of persistent inflation also took comfort in the drastic decline in prices in the face of cooling demand.
It did in Lumber prices. 1 month and nearly a 50% collapse. Now of course you aren’t going to go to good olllll home depot and find Lumber prices down 50%. Nope. No way no how.
This is from April 2021.
“A sheet of [4-foot by 8-foot] half-inch plywood costs $65 today. It was $51 a few days ago,” said contractor Brian Barker of Sunshine Coast Roofing Ltd. on April 12, as he prepped a roof for more than 50 sheets of plywood.
This is definitely not sustainable:
Looks the the stock market and pretty much every commodity out there over 5 years.
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Imagine what it would look like if there was any inflation going on. 
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You’re not going to get a better deal in a couple months. If anything, it will be the same or worse. Stock levels aren’t going to return in meaningful numbers until 2022, unless people simply stop buying cars. And there is a good likelihood they’ll never be as high as they once were. GM and a couple others have indicated they will not be returning to ultra high inventory levels and that dealers should prepare to run lean. How that will affect union labor, we shall see.
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Sounds like all the manufacturers should just follow the Tesla model and sell directly to consumers, bypass the middleman, increase the profit margins, and so on. Maybe that’s where they’re heading
That won’t happen. The dealer lobby is way too strong. Personally, I’d prefer it didn’t. I prefer choosing and picking up my car on the lot vs waiting and hoping there aren’t problems
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If your choice is now or two months from now, buy now if you can find it. Most everyone seems to be shutting down for the summer, I don’t see how two months from now is going to be any better. For the cars that are getting produced, the constraints keep getting worse.
To add to what you stated, manufacturers do not have to offer much in incentives given current market conditions.
I would suggest trying to lock a deal now, as long as you can afford to. Don’t expect deals to get better in a couple of months, if inventory issues don’t improve. Even if the chip shortage were to end soon, it will take some time for manufacturers to get back to “normal” inventory levels.
My A4 lease was slated to end this month. However, I decided to take advantage of Audi’s pull ahead program and get into a new lease in early May. I am glad I did.
At the end of the day, you are going to have to make a decision soon. What model were you looking at, BTW? I hope not an M340i.