On most things prices are falling or about to be marked down. This is true in some real estate markets as well.
One or two articles on one of the links blame the corporate tax cut for inflation.
Most of the articles discuss major price cuts. Tampa is seeing the housing market fall apart.
Ice Vehicles are a problem. The prices need to drop in both New and Used.
Andy
If car prices start falling, that will motivate luminaries like Farley to drop more lower priced models, to continue inflating ATP and GP, against the trend.
Steve
It depends on how many parts plants have been built, if any. The rising production of parts would lower prices.
Among individual items in April, grocery prices slipped, providing a break to shoppers. Egg prices, which have been volatile after a bout of avian flu, fell 7.3%. New and used car prices also dropped. By contrast, prices for gas and clothing both jumped.
I was referring to the point above about ICE vehicle prices. Farley has already said that, having dropped conventional passenger cars, and their smallest CUV, he now wants to get out of the two row SUV market entirely. There is too much competition in that segment, he cries. Having trained Wall St to expect ever inflating ATP and GP, a falling price trend will probably accelerate his dropping of lower priced SUVs, to push against the trend. From what Farley has been saying, if you want an enclosed vehicle, vs a pickup, he doesn’t want to bother with you unless you want to drop over $40K, because that is where the three row Explorer starts.
Of course, if he doesn’t want to bother with market segments under $40K, that will seal Ford’s fate. Because, by the time people get to the point in life where they can afford $40K for a sled, they will have already been captured by another manufacturer, who has continued to build good quality, low priced, vehicles.
https://fordauthority.com/2023/02/ford-ceo-farley-says-company-is-done-with-two-row-ice-suvs/
The economic ideology has changed. Times they are a chang’n.
The conglomerates spy profits and set about to compete for the same market. The reason is that exporting will make them profitable.
The average price paid for a new vehicle in the United States fell 1.2% in January from a year earlier, to $47,338, according to data collected by Edmunds.com. That’s down 2.4% from a peak of $48,516 set in December 2022.
Yea that isn’t going to cut it for most of the working people. The average price is 47,338. Look at this.
LOL 94,000 for a Used Jeep. What a deal.
Andy
Automaker honchos blow off questions about affordability. They will happily close more plants and lay more people off, as they narrow their focus on the most profitable segment.
Right Steve, they are making vehicles at the high point and then discounting them a few dollars to say that prices are coming down. Look at all the used car prices. They still want over 20 thousand dollars for a used vehicle with over 100,000 miles on it.
Andy
It is early yet.
Don’t get your knickers in a twist.
