MarkHarvey on Nostr: CarGurus used Car Index: According to the index, used car prices are up 2% in the ...
CarGurus used Car Index:
According to the index, used car prices are up 2% in the last month, and have increased the last 3 months consecutively.
Used car prices are at the same level they were in October of 2021, before the Fed even started raising interest rates.
My thoughts: higher interest rates means higher financing cost for used cars. Higher financing costs means lower demand. Lower demand for used cars means lower prices. 😅
At least that is what I thought would happen with high interest rates. But I've been wrong on this so far.
Why are used car prices so sticky?
According to the index, used car prices are up 2% in the last month, and have increased the last 3 months consecutively.
Used car prices are at the same level they were in October of 2021, before the Fed even started raising interest rates.
My thoughts: higher interest rates means higher financing cost for used cars. Higher financing costs means lower demand. Lower demand for used cars means lower prices. 😅
At least that is what I thought would happen with high interest rates. But I've been wrong on this so far.
Why are used car prices so sticky?