Impending Doom on the Horizon For Car Market
Timing the market can often feel like a daunting task, with the risk of missing out on potential gains or deals if one stays on the sidelines and decides to wait. However, there are instances where the prospect of a bubble looms, and the market appears poised for a correction. One such market that has raised eyebrows in such a way is the automotive market, seemingly propped up by nothing more than a supply shortage from the past couple of years.
Since the onset of the global pandemic in 2020, the automotive market has experienced unprecedented turbulence. Sure, in a typical car market, the value of money diminishes over time, naturally causing the dollar figures attached to cars to rise. However, the rapid and seemingly unsustainable spike during this period has left many wondering when or if the trend will normalize.
One might even see that manufacturers have learned that people are willing to pay more for cars and they could take advantage of that. How true is this idea, though?
Three years later, the automotive market continues to maintain a high pricing trend. Yet, YouTube creator Flying Wheels offers a perspective suggesting that this trend might be on the verge of a shift.
In a recent video, Flying Wheels provides a comprehensive rundown of the current state of both the new and used car markets. The analysis considers various factors, including the role of electric vehicles, the impact of shortages, and other economic influences. Outhost has even been through the likes of the 2008 recession which had a major impact on people’s ability to buy cars. The video even features a specific example of an SUV that has languished on a dealership lot for about a year, really providing an interesting example of how consumer demand is shifting.
The host, drawing on his experiences over the past few years, offers a professional opinion on the possibility of a car market collapse. While it’s just one perspective, the firsthand experience really gives us some valuable insight as to what might be coming next.