In the year 2023, we will see a significant economic downturn that will affect home values and completely obliterates the used car market. Layoffs are looming, and inflation still has not stabilized.
Auto loan defaults are increasing rapidly, while auto values have been falling for the past few months. It's gotten to a point where some companies are not even bothering to repo a vehicle because of how little some of these cars are worth. With the auto-loan defaults comes the rise of interest rates by the Federal Reserve which is going to dramatically hit the housing market soon. The bubble hasn't popped just yet, but the peak of home values has been reached in May 2022, at least here in Florida. Construction companies will likely feel less reluctant to expand operations, and home developers are in a tough spot if they continue building homes.
The media and tech industry was just struck with a massive wave of layoffs, which will likely trickle down into more important industries such as the trucking industry. This will be a credit crunch like nothing we have ever seen; the Auto-loan collapse is currently upon us, the housing market crash is beginning to ignite, and inflation still isn't slowing down on necessities as this all is happening just in time for Christmas.
Expect a major downturn in Q1 2023, and prepare yourselves because there is no telling how long this will last. The Great Recession is almost upon us.
....great recession ?
This is gonna make the the great DEpression of the 1930's, look like a walk in the park.
The 112 year ponzi scheme that has its tentacles spread right across the world, is about to come crashing down...
Interesting to hear that used car sales are so bad now, after just months ago hearing things were so hot, if you had a clunker out back that didn't even run, you could get thousands for it.
Keep in mind, the catalytic converter on every vehicle is worth $1000-$2000 to a scrap metal dealer. They're so valuable now, it has become one of the most stolen items in Canada (and probably USA etc). Even more than flat screen TVs. Entire criminal organizations have sprouted up that do nothing other than steal catalytic converters off parked cars and melt them down. Nearly a billion dollars worth of stolen catalytic converters was recently seized by police in a warehouse. So used cars must be worth at least $1000 just for that part alone.
The auto sales are taking a dive and with the bankruptcy of Carvana, it's very likely that the vehicles that are owned by them will be liquidated and sold for cheap. The boom in used auto sales has ended.
What's funny is that on my sister's previous car, some losers stole her catalytic converter.
Catalytic converter theft has become one of the top crimes in North America over the past couple years. It's because they're made of precious metals, which have gone up in price lately (and will continue to).