It was like when Bay Cities Deli in Santa Monica decided not to accept credit cards anymore (only debit and cash now)…I asked why, and they said they didn’t want to raise prices to offset the CC fees.
I smelled BS, and sure enough prices have been creeping up since anyways…they’ve probably saved over 1mm in CC fees since, so I can’t really blame them.
supply issue still exists for new cars, don’t see those prices changing anytime soon. Used car prices were due for a correction. When a used car is selling for over it’s original MSRP (on something like a Honda Civic), you know there’s a bubble.
So what happens when everyone is leasing cars at MSRP , what happens when the bubble burst and used car prices drop over 25% in a single month. What happens to tbose who paid over and beyond invoice and MSRP and higher. Will they be holding a car with negative equity in 2 or 3 years at turn in ???
That’s the beauty of leasing. Depreciation is fixed. No matter what happens. When your lease matures, you hand the captive the keys, pay the disposition fee, and walk away. The lease captive will be left holding the bag and it will be their responsibility to unload the car.
The residual value at lease turn in doesn’t care if you paid $10k over MSRP or $10k under MSRP.
I’m sure that’s how all these dealers will offset their losses this year. Selling so many cars close to MSRP will make up for all the discounting they’ll have to do when supply catches up and demand falls.
The fall and winter will be very profitable for them too. 2022 - maybe.
Reminds me a friend of mine who has been waiting for housing prices to drop since 2012. He is in escrow now. 
One involves buying our your lease and then immediately turning around and selling it to someone else, and the other doesn’t.
The result is the same for all parties, just more efficient process
I can steal a loaf of bread or I can buy a loaf of bread.
Either way, I get home with a loaf of bread.
The tax man disagrees.
I don’t think it’s remotely equatable….
The more accurate analogy is I can buy a loaf of bread and sell it to someone for a markup or I can broker the deal and get a broker “fee” for it
Not in California 
You’d need a business license to sell food, and your facility would be subject to health inspections.
I think it is the peak. Not only cars but also house price stops increasing. But the real matter question is how fast it can get back to normal and when we can see the pricing competition comes back.
Also, I guess different brands may have different recovery speeds. Toyota probably will be among the first batch starting to give big discounts and incentives. Mercedez probably would be in the last batch.
Why would any of this stop with near 0% interest rates and an extra 8 trillion in fiat floating around just in the USA? That’s not including all the other countries printing for the race to the bottom…
I could see prices dropping slightly and stabilizing before continuing the constant inflationary trajectory of the last decade.
It is all supply-and-demand. MSRP may increase continuously. But it does not affect leasing since we are only paying the difference.
You will never see lease pricing from 1-3 years ago again. Or any commodity pricing for that matter. The fed is out of ammo to control inflation. It’s almost as if they planned all this muahaha. These economists can’t possibly be this dumb, which means they’re in on it.
In politics, nothing happens by accident. If it happens, you can bet it was planned that way.
Franklin D. Roosevelt
Case in point. These morons at CNBC, they actually edited the headline bc they got ridiculed so much this week. State propaganda isn’t working so well these days…
Car price will go up in long term
The car average price will be higher for sure, as a 5-10% increase in the long term since everything is getting more expensive.
Lease price will be corrected probably shortly
But currently, the lease price is particularly affected. It is not a 5-10% increase but a 40-50% increase for some type of car, like luxury middle-large SUVs. Because leasing only pays for 3 years cost, since the RV is unchanging, the 5-10% increasing in car price would be like a 30-50% increase for lease monthly payment.
1 percent rule will still hold
Because the car life is expected, roughly 8 years(96 months). So 1 percent rule for monthly payment is quite reasonable. If more than that too much, people will simply choose to buy instead of lease.