Thursday, May 2, 2019

New Car Prices Are Soaring

File Under: There is no price inflation.

The average price of a new car is expected to climb to $36,718 in April, the highest level seen so far in 2019, according to Edmunds. It would also put car prices at an all-time high.

And to think that Trump still has under consideration the slapping of tariffs on foreign cars.



  1. I've heard about auto loans being packaged and sold in a similar fashion to the bundled mortgages sold during the 'Great Recession'. Any truth to this? Is there a way to short bundled auto loans? It is probably time to go long on repo-men.

  2. As an auto dealer with 500 cars in stock, I wish this was true but it isn't. Vehicle market prices are going down and it ain't fun. Inventories are rising because the manufacturers and dealers aren't lowering prices fast enough.

    1. They have a long way to go to even remotely be capable of selling new cars to the hollowed out middle class. I have my popcorn. Will be interesting to see how the train wreck unfolds

    2. Well, for me at least, a $34,000 "discounted" new car is still out of reach. Or, rather, I wouldn't even think of spending that kind of money.

      Used all the way, baby!

  3. The car dealers can eat crap for all I care. I bought my first and last car over a decade ago. As Paul Craig Robers points out, the corporate crony capitalist love to offshore to cut labor cost but can't make the calculation as to who will buy this stuff if they have no job. Well, the libertardians are not much better.

  4. The graph also follows the ability of automakers to deal with the increasing regulatory cost of automobiles.

    Whatever room there is to give the prices will go down as inventories are very high right now.