Jay Weber Show transcript 8-21-23
We’ve talked about the latest signs of Bdenomics not working and years of staggeringly high inflation and ever-increasing prices are still crushing most Americans credit card debt is up dramatically. Emergency withdrawals from 401ks are spiking. Gas is up around 4 dollars a gallon again. Mortgage rates have crept over seven percent across the country and-in some states-are now above 8 percent.
If this is Bidenomics, Joe Biden should be locked up for all the damage that he’s doing.
Here’s another measure: we are seeing a surge in people defaulting on their car loans-suggesting to both the auto and finance industries that-geez- the prices for new cars are starting to hit a point that they are unsustainable for most buyers.
In layman’s terms that means-even buying a new car with financing...people can’t make the monthly payments that they are agreeing to.
And you can turn it back on the borrower, I suppose well, then they shouldn’t be buying the car-
But the lesson for the economy is: more and more people feel like they are being forced to accept the terms of car loans that they can’t afford.
Due to that pandemic shift, most car makers stopped making less expensive models.
Do you know how many new car models are selling for under 20-thousand dollars?
One.
If you want a new car for about 20 grand, now, you have -one choice. A cheap looking Mitsubishi mirage hatch back-
And buy it fast, because Mitsubishi says that even the price of this car is going to be more than 20-grand, soon.
For comparison- five years ago-there were at least a dozen models that sold for under twenty grand. Now-there’s one.
But if you are able-and willing-to spend over 100-grand for a new car- there are 32 models you can choose from.
There are now- 32 times more cars available at 100-grand...than 20-grand.
This is where we are now, in America, when it comes to new car sales. That’s insane.
To add some perspective: cox says that-for the average American- paying off a new car takes 42 weeks of their income.
That’s up from about 33 weeks of income to pay off a new car in 2019, pre-pandemic.
And during the pandemic? People were paying the prices amid parts shortages and government cash. Now?
It’s a struggle.
The average price of a new car now is 52 thousand dollars. And that’s before the left forces us all into the ‘electric car’ era, where you can tack another 15 to 20-grand onto that average price.
And to drive a crappier product.
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