Economic Outlook: Source

 Reviewing consumer spending we saw growth in the second to last week of 2023 with consumers gearing up for Christmas and putting money on their credit cards.

Bank of America shows for every segment of wage earner wages have been down over the last six years, but the wage growth percentage is steady.

Looking at savings balances to the bottom right you can see that Americans are still well above their savings rates pre-COVID and holding steady at mid-2021 levels. That’s good news for tax season.

Used car prices rose 36% in 2021, only to fall 7% the year after. As 2023 ends, it looks like used car prices will end the year about where they began 12 months ago.

The roots of the used car shortage can be traced back to the supply chain problems of 2021-2022.

The production of new cars slowed, and sales dropped like a rock. Fewer cars sold in 2021-2022 resulted in fewer trade-ins and subsequently, a tightened supply of used vehicles.

With approximately 15 million new cars that were initially scheduled for production globally never seeing the light of day, the ripple effect has led to a lasting shortage of used cars.

As Cox Automotive is predicting, used car values will grow .5% in 2024, and used car sales should increase slightly year over year.

John Ellis CEO & Founder of The Automotive Advisor Team, LLC

Author: John Ellis

Founder & CEO The Automotive Advisor Team, Inc. BEVEveryting, Inc. Double E Consulting, Inc.

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