Used-vehicle prices will fall quickly later in 2022, firm says. Here’s why. – Automotive News

Other industry experts anticipate vehicle prices will decline at a more manageable rate.

This month, Cox Automotive chief economist Jonathan Smoke told Automotive News that dealers seem more comfortable that the elevated prices they’re paying to obtain used vehicles won’t come back to haunt them.

Cox expects the Manheim used-vehicle index to peak for a final time between January and April 2022, when customers spending tax refunds would cause a final price spike above the 2021 ceiling seen in November.

Normal depreciation would return after this point, taking used vehicles back down to December 2021 levels in December 2022, Smoke said.

However, December 2021 still represents an elevation over the norm, and Smoke said Cox expects that the wholesale market wouldn’t reach pre-pandemic volume until at least 2025. This would require 17 million new-vehicle sales in 2022, he said.

Silberg called KPMG’s used-vehicle price collapse one of three possible scenarios.

A second forecast offers the “humility” of entertaining that KPMG’s price-drop hypothesis was incorrect, Silberg said. In this future, the “inflationary fire” burns longer, he said. “This thing could drag out,” Silberg said.

Finally, there’s the potential that the Federal Reserve’s response to inflation hits too hard and produces an “ugly story” of stifled consumer demand, he said.

Automakers should develop contingency plans for all three of these potential futures, according to Silberg.


Leave a Reply

Your email address will not be published. Required fields are marked *



NASCAR’s Symmetrical Next Gen Cars Are Getting Skewed In Practice – Jalopnik

NASCAR’s newest Next Gen cars may be designed to make these vehicles as symmetrical as possible, but some teams have already found a way around the rules. During this week’s test session at Daytona International Speedway, some cars have been running some fairly excessive skew — and right now, it could very well be totally legal.

Basically, skew refers to the angled nature of the NASCAR Cup Series car. The front end looks like it’s pointing in a different direction than the car is actually going, which gives the whole thing a sort of crab-walk look. The rear axle is mounted on a skew when compared to the whole chassis. For…….


Is Norway the future of cars? – Kathimerini English Edition

The speed by which electric vehicles have taken over Norway has stunned even the cars’ enthusiasts. [Asya Demidova/The New York Times]

Last year, Norway reached a milestone. Only about 8% of new cars sold in the country ran purely on conventional gasoline or diesel fuel. Two-thirds of new cars sold were electric, and most of the rest were electric-and-gasoline hybrids.

For years, Norway has been the world leader in shifting away from traditional cars, thanks to government benefits that made electric vehicles far more affordable and offered extras like letting electric car owners skip some fees for parking and toll roads.

Still, electric car enthusiasts are stunne…….